Thoughts on TNT-UN.TO?

Hi there,

Let's take a look at he latest quarterly earnings. In Q3, it collected 99% of contracted rent and it has a 98% portfolio occupancy. Those are some very strong numbers given we are still very much in the midst of the pandemic. This is likely a result of the fact it does count the Government as a primary tenant.

In terms of cash flows - key to determined dividend safety - FFO was flat YOY and AFF dropped by $0.001 per unit last quarter. Through the first 9 months of the year, the dividend accounted for 99.4% of FFO and 104% of AFFO. Although one might think this was COVID-19 related, it had similar payout ratios over the same period in 2019. These are quite high and I would definitely not feel confident in saying they were safe. In fact, it looks to have the highest payout ratio among all REITs in the commercial industry. Combine that with the fact it has one of the highest debt loads among commercial REITs, I'd argue it is the least safe of the bunch.

Mat