The Globe and Mail reports in its Tuesday edition that CIBC analyst Chris Couprie cut Invesque to "neutral" from "outperformer." The Globe's David Leeder writes in the Eye On Equities column that Mr. Couprie
trimmed his share target to $5.50 from $7.50. Analysts on average target the shares at $6.85. Mr. Couprie says in a note: "Invesque's model has transitioned from primarily being focused on triple-net lease healthcare real estate, to one that incorporates a degree of operating exposure with the recent Commonwealth acquisition. And while we are cognizant that the transition from Greenfield to Commonwealth accounted for two cents of the miss, operating results were short beyond that. Visibility is limited and while COVID-19 has not yet had an impact on any of IVQ's operators, the lack of a reimbursement mechanism for properties which experience vacancy could pressure margins for operators where coverage ratios are tight, and could delay the anticipated occupancy recovery at the Commonwealth platform. The payout ratio was high in 2019, coming in at over 120 per cent of IVQ's reported AFFO and on our current forecasts, the payout looks to remain elevated, which leads to sustainability questions."
© 2020 Canjex Publishing Ltd. All rights reserved.