Pure Multi-Family REIT – 2nd quarter earnings report

Operating Revenues up 12.6% yr / yr

Operating Expenses up 21.2% yr/yr

Net Rental Income up 9.6% yr / yr

Average Monthly rent increase up 3.2%

Funds from Operations 7 cents, down from 12 cents last year

Dividend Payout almost 142%, vs almost 81% last year

While the fundamentals look fine, the sharp decline in funds from operations combined with the very high dividend payout does not bode well in a rising interest rate environment.

My recommendation is to sell  this REIT and use the proceeds to buy my three remaining REIT names, Chartwell Retirement, Canadian Apartment and Pure Industrial.

Posted in Blog Post.

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