TNT-UN

Hey there,
At some point, I'm sure Office REITs will turn around but I'd still focus on those best in class like Allied Properties. The problem with TNT is that it had to cut the dividend because it was in poor financial shape with high debt loads. Today, they still have the highest leverage ratios among all TSX-listed Office REITS. Their FFO/Interest coverage ratio is also not great, sitting at 1.33.

The re-establishement of the distribution is not new, it was already pre-determined that they would use cash to buyback shares for 6 months. So yes, they have certainly made some progress and will be in a better position after their NCIB but personally, I'd rather have seen them take that cash and pay down debt.

Mat