Hi there, it looks like you are focusing on those with significant exposure to the retail and office industries. Here are my quick thoughts on each:
- BPY.UN - Brookfield is a best in class name, but the company's retail segment was struggling pre-COVID 19. This led to a lower than expected dividend increase of 0.8% in early February. Underperformance in this area is accelerating. In April, the Office and multifamily segments collected 90% of rent - this is good. On the other hand, its retail segment only collected 20% of rent - I haven't seen any rent collections this low in the industry. The one thing this company has that the others don't, is the backing of parent company Brookfield Asset Management - one of the largest asset management companies in the world.
- HR.UN - H&R REIT is being impacted on both the retail and office fronts. The majority of its income is centered around office properties in Ontario. The company's stock is down 50% this year and it has already slashed the dividend by about 50%. It has collected 85% of April rents, but May is trending downwards (towards 80%). The Office REIT industry will also be impacted post-pandemic. Work @ home is here to stay and many large companies have already announced their intentions to reduce office footprint.
- SRU.UN - The company's largest tenant is Walmart which accounts for approximately 25% of revenue. Approximately 50% of revenue is backed by companies like Canadian Tire, McDonald's, Shoppers, RExall, RBC, etc. This strong portfolio of companies makes it attractive. The company has yet to cut the distribution, but there are some warning signs. The company collected only 72% of rent, and is tracking for the same in May. This is actually below the industry average. Somewhat surprising considering its strong credit-worthy tenant base.
All three pose additional risk due to their exposure to Office and Retail segments.
Mat