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Gold/Mining/Energy : Canadian REITS, Trusts & Dividend Stocks

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To: Greg Spendjian who wrote (271)	12/15/1999 10:53:00 PM
From: Ally	Read Replies (1) of 11633

REITs are currently out of favour, not only in Canada, but also in the States. Investors are chasing after hot tech stocks. REITs are not sexy right now, even though some are returning 14% and up. Summit is a case in point. My dad owns REITS including SMU. I did an analysis on SMU, and its appears that the trust can easily support the $1.50 annual payout for the combined total (9 million from Avista and 17 million from SMU) of 26.3 million units.It will be saving about $5 million yearly of Avista's management fees. Cash flow of the combined operations is in excess of the $1.50 payment to the 26 mill units. However, there would be a debt load of about 85 million due to the Avista purchase. Also, about 2/3 of the fee payout to the managers on the internalization are in the form of units. So, the managers will want to do everything possible to keep the stock price up.

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