Hi there,
First things first. In this environment, and the longer COVID-19 mitigation efforts persist, the more at risk the dividend. There is no question that the automotive dealership industry will be significantly impacted as lower sales volumes are expected. In response to COVID-19, the company announced it is working with tenants on rent deferrals. This will impact near term cash flows.
On the bright side, it has a respectable debt profile and has sufficient liquidity to navigate over the short term. In fact, earlier this month the company announced it intends to keep the distribution steady "for the foreseeable future". As mentioned previously, the longer this persists the more likely a cut or suspension to the dividend.
That being said, any cut or suspension is likely to be a temporary measure. It generates significant cash flow and over the company's long-term growth prospects remain in tact. It is a leading industry consolidator and the Canadian dealership landscape remains quite fragmented. In fact, there may be opportunities for accelerated growth as we emerge from the crisis.
I'd consider it a good long-term hold irregardless of what happens to the dividend in the short term.
Mat