Cominar slims down
On March8 Cominar released it's fourth quarter and annual results.Cominar showed investors that it had increased it's occupancy rate ,decreased it's debt ratio and sold quite a few properties.It aslo completed construction of a few new properties and signed a few new leases.
Operational Highlights
Cominar's operational data was lackluster at best but it is apparently taking a new direction.Operational revenues were $867 million versus $889 million in 2015.While operating income was $468 million versus $487 million in 2015.On the other hand, cashflow was $284 million or up 8% over $264 million in 2015.
Slimming Down
In order to reduce it's debt ratio to 52% Cominar completed 31 properties for sale for total proceeds of $116 million and has properties valued at $143 million for sale.It also completed construction of a $20 million property in Laval (near Montreal) and a $25 million building in Trois Rivieres .Both have an occupancy rate of 100%.And in January completed the sale of a property in Toronto for $58 million and 8 properties in the Montreal area for $35 million.
2017 Outlook
Cominar's share price traded in 2015 at $17 to $18 per share but fell to $14 at the beginning of the year;it has recently traded at $14.50.But many of it's operational statistics are down from 2015.As mentioned above it has started a new program to slim down and divest of some of it's older properties.It reports that it sold 31 properties and built a few new ones.It also increased it's occupancy rate and signed a few new leases at higher rates.It looks like it's embedded financing is a little expensive and needs to be refinanced and as well it needs some new leases.This blog sees Cominar as being back on the "comeback trail" but it needs to slim down more and replace old financing with new.Look for Cominar to settle in the $14.50 to $15.50 price range in 2017 and look for more divestitures also. use Blogdaleupsome for business forecast; use Blogdaleupsome for business forecasts
Operational Highlights
Cominar's operational data was lackluster at best but it is apparently taking a new direction.Operational revenues were $867 million versus $889 million in 2015.While operating income was $468 million versus $487 million in 2015.On the other hand, cashflow was $284 million or up 8% over $264 million in 2015.
Slimming Down
In order to reduce it's debt ratio to 52% Cominar completed 31 properties for sale for total proceeds of $116 million and has properties valued at $143 million for sale.It also completed construction of a $20 million property in Laval (near Montreal) and a $25 million building in Trois Rivieres .Both have an occupancy rate of 100%.And in January completed the sale of a property in Toronto for $58 million and 8 properties in the Montreal area for $35 million.
2017 Outlook
Cominar's share price traded in 2015 at $17 to $18 per share but fell to $14 at the beginning of the year;it has recently traded at $14.50.But many of it's operational statistics are down from 2015.As mentioned above it has started a new program to slim down and divest of some of it's older properties.It reports that it sold 31 properties and built a few new ones.It also increased it's occupancy rate and signed a few new leases at higher rates.It looks like it's embedded financing is a little expensive and needs to be refinanced and as well it needs some new leases.This blog sees Cominar as being back on the "comeback trail" but it needs to slim down more and replace old financing with new.Look for Cominar to settle in the $14.50 to $15.50 price range in 2017 and look for more divestitures also. use Blogdaleupsome for business forecast; use Blogdaleupsome for business forecasts
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