Apria, Inc. Common Stock

APR

Market cap $1.34B

Automotive Properties REIT delivered strong Q2 results, with AFFO per share up 7% and a lower payout ratio, supporting a distribution increase. The REIT raised its monthly distribution by 2.2%, now yielding 6.9%, backed by the acquisition of seven new properties for C$94M. I see potential for AFFO per share to reach C$1.10 by FY 2027, paving the way for further dividend increases and an attractive growth profile.

Automotive Properties Real Estate Investment Trust offers a unique way to invest in consolidating auto dealership real estate, with a diversified portfolio and 100% occupancy. The REIT provides a generous 7.5% yield, supported by stable, long-term leases with annual rent escalators and a payout ratio in the 80% FFO range. The REIT provides a generous 7.5% yield, supported by stable, long-term leases with annual rent escalators and a payout ratio in the 80% FFO range.

We had previously downgraded AutoREIT to a hold. The stock has underperformed the broader market by 15% since then. We review the Q3-2024 results and tell you why this gets an upgrade back into the buy-zone.

We gave Automotive Properties REIT a buy rating the last time around based on one key factor. The REIT validated that thesis in spades. We examine what drove the rally and where we stand today.

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Real estate as an asset class is facing challenges, but opportunities exist in well-positioned REITs. Automotive Properties REIT focuses on dealership properties in Canada, with stable rental income and long-term leases. Despite rising interest expenses, the REIT's disciplined expense management and limited capex highlight its ability to sustain FFO as rates rise.

Auto REIT had a stable Q1-2024 with increased rental revenues and good expense control. The REIT has a 100% occupancy rate and a long average lease term. We examine the valuation and the dependence on its largest tenant.

Automotive Properties REIT has a strong balance sheet and some steady returns. APPTF continues to buy new properties at attractive prices, and this has boosted its bottom line. Risk: Canada is a smaller automotive market, and this could limit the REIT's portfolio expansion.

Courtney Garcia, Payne Capital, joins 'Power Lunch' to discuss stock plays for three companies including: Home Depot, Caterpillar and Gold.

Automotive Properties REIT owns 77 properties across 249 acres of automotive dealership properties across Canada. The REIT's long-term leases and triple-net structure provide a predictable and stable income stream, enhancing its ability to manage financials and make consistent distributions. The REIT's financial position looks solid, with a Debt to GBV of 44.5% and an interest coverage ratio of 2.8x.