Cominar streamlines a little
Cominar is a Quebec based reit with $8.2 billion of assets and 556 properties ;this includes residential, industrial,office and mixed-use properties.It had a good year and so it reports that net income increased by 19% and recurring distributable income increased by 19%.In addition, it sold two properties for $98 million of proceeds which it used to buy another three industrial properties in Montreal and reduce debt.It also bought back 531,00 share through a normal course issuer bid.As a consequence it's per share performance figures were up from 2014 Net income per diluted share went from $1.45 in 2014 to $1.62 per share in 2015;this is a 12% increase in net income per share..Cominar has had tremenduous growth since 2011 in assets and revenues and earnings but it's per share numbers have been almost constant in this time period.Now it is starting to streamline a bit and it is having good results for them.However this blog calls for more of these same type of actions.
Operating Statistics
Operating revenues were up 20% over 2014 from $740 million to $890 million.At the same time recurring adjusted funds from operations were up 19% to $261 million or $1.55 per share.This is a 14% increase over 2014 but was almost constant for the fourth quarter.While cash flows went from $229 million for 2014 to $263 million for the full year of 2015.This is a substantial amount of cash flows and can be used for new acquisitions, buying back more shares or reducing a significant amount of debt.This according to this blog puts Cominar in a good position to pick up new opportunities in regions outside of Montreal where real estate prices have lagged behind.
Conclusion
Cominar needs yet to streamline it's quarterly reports;Some of the statistics used such as recurring adjusted funds from operations and recurring distributable income are not recognizable for many investors. Most investors want statistics like cash flow per share, adjusted EBITDA per share and adjusted finds from operations per share.This allows them to compare with other reits and indeed other stocks.Cominar is getting better per share performance figures and needs to highlight them.Investors don't care whether they are recurring or not ;they simply want to compare them to other investment opportunities.
That aside Cominar continues to have good growth in operating revenues and cash flow.This gives them the opportunity to buy back more shares and reduce debt This .blog would like to see Cominar paring down some of their Montreal properties with less potential increases in the capitalization rate and buying properties in parts of Quebec where prices are down and will come up in the rest of the cycle.
use Blogdaleupsome for analysis of reits ;See Blogdaleupsome for analysis of Cdn. reits
Operating Statistics
Operating revenues were up 20% over 2014 from $740 million to $890 million.At the same time recurring adjusted funds from operations were up 19% to $261 million or $1.55 per share.This is a 14% increase over 2014 but was almost constant for the fourth quarter.While cash flows went from $229 million for 2014 to $263 million for the full year of 2015.This is a substantial amount of cash flows and can be used for new acquisitions, buying back more shares or reducing a significant amount of debt.This according to this blog puts Cominar in a good position to pick up new opportunities in regions outside of Montreal where real estate prices have lagged behind.
Conclusion
Cominar needs yet to streamline it's quarterly reports;Some of the statistics used such as recurring adjusted funds from operations and recurring distributable income are not recognizable for many investors. Most investors want statistics like cash flow per share, adjusted EBITDA per share and adjusted finds from operations per share.This allows them to compare with other reits and indeed other stocks.Cominar is getting better per share performance figures and needs to highlight them.Investors don't care whether they are recurring or not ;they simply want to compare them to other investment opportunities.
That aside Cominar continues to have good growth in operating revenues and cash flow.This gives them the opportunity to buy back more shares and reduce debt This .blog would like to see Cominar paring down some of their Montreal properties with less potential increases in the capitalization rate and buying properties in parts of Quebec where prices are down and will come up in the rest of the cycle.
use Blogdaleupsome for analysis of reits ;See Blogdaleupsome for analysis of Cdn. reits
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