Last Update05 Jun 25
Walmart's recent expansion plans in Canada will benefit Smartcenter more than other REITs.
Tariffs from the USA will put pressure on the Canadian economy, forcing more interest rate cuts and leading to less interest expense for Smartcenter
Even with economic pressure on the Canadian economy, Smartcenter's clients are still resilient and strong, unlike other Reits' clients that are less stable (ex. Hudson Bay & Peavey Mart),
- Smartcenters has a diversified portfolio of clients that are pretty recession proof and immune to standard retail challenges
- Occupancy rate is higher than industry standards while also being able to charge more due to their quality locations
- Top-tier management that is financially conservative allows them to keep their incredibly high dividend in times of economic downturn while competitors were forced to lower dividends
- The company's financial position is solid and the giant dividend they are paying is still maintained by cash flows
- Expanding into mixed use facilities and self-storage will create a more diversified and secured revenue base
- Decrease in interest rates will lower costs and improve margins giving the company a better cash position to decrease debt or encourage growth
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