It wasn’t any easy decision to make. I have owned this stock for about 8 years and enjoyed the modest returns as a conservative yield play. What tipped the scales was yet another round of debt to equity conversion as a solution to paying off bond debt. If you look back, these conversions have been taking place for awhile as a means to keep cash in the business and reduce interest expenses. A sound strategy when rates are rising, but they have not. Debt is cheap and when you’re paying a yield of 4.4% on your shares, what incentive is there to further dilute your shareholders value? Their debt load is also increasing to uncomfortably higher levels, hovering around 50% while Boardwalk and CREIT have levels in the 30’s. Their ROE is lower and Price to Book higher than industry peers at this time. The numbers are working against them. They have not done a good job of increasing my shareholder value over the last 2 years and it’s time for me to look for greener pastures.
Sorry FCR you have been eliminated.
Rick Barbosa
bbtfinancial.ca 
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