MFCSF - Medical Facilities: The Big Drop In Distributable Cash Flow Is Misleading

Medical Facilities Corporation (MFCSF) reported Q3-2018 results and the big drop in the stock was likely due to their most examined metric: cash available for distribution ((CAFD)).

CAFD decreased 23.4% to C$9.4 million and the payout ratio was 92.4% compared to 70.7% in Q3 2017. Are things really that bad?

We actually think that the results were excellent and the dividend is safer than ever before. Allow us to explain.

Strong top line growth

MFCSF delivered strong top line growth with its recent acquisitions but for a change,

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