WY - PotlatchDeltic: Asset Rich Cash Flow Poor

2024-04-19 15:26:28 ET

Summary

• We had a Sell rating on PotlatchDeltic Corporation in our last coverage.
• It has underperformed comparable REITs and the Vanguard REIT Index ETF since then.
• Dividends for PotlatchDeltic are not covered by cash flows and won't be covered in the next few years as per current estimates.
• We go over why we are still upgrading this to a hold from a sell.

Investors own assets for different reasons. While most on this platform form their basis on the income stream, some may buy it for the underlying value. Occasionally, as one investor kind flees, another kind may enter. So it is always helpful to see valuation from more than one perspective to see if ownership makes sense....

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