# FRU.TO Freehold Royalties



## liquidfinance (Jan 28, 2011)

Any thoughts on this one as an income play?

Any members currently hold?


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## Feruk (Aug 15, 2012)

I think it's a very poor income play. They'll make ~$63 million this year and pay out around $112 million. Unsustainable. For me, it would warrant no further look.


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## liquidfinance (Jan 28, 2011)

$1.35 FFO against $1.26 in dividends paid. 

Needs a closer look but seems to have a good history.


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## londoncalling (Sep 17, 2011)

There is a member on FWF that has held it for years and a thread there as well. I had pm'd back and forth with this member for quite some time before picking up IPL and some more risky plays. The interesting thing to me about FRU is that it is a royalty company if I remember correctly. They own the leases but do not have to deal with input costs. It has a history of slow and steady yields. A nice sleepy stock. If I remember the member I am talking about said it tended not to move up or down as much as other oily plays b/c of the above. Still on my watchlist. Need to watch my allocation though before I buy any more oily equities.

Cheers


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## Feruk (Aug 15, 2012)

liquidfinance said:


> $1.35 FFO against $1.26 in dividends paid.
> Needs a closer look but seems to have a good history.


Payout ratio = Dividends per share / EPS. Not FFO. Looking at FFO is misleading because you don't take into account the $26 million capital cost they spent. Companies that rack up debt to pay a dividend usually run into the wall sooner or later.


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## investor65 (Aug 3, 2021)

Started my position on FRU today. Bought 2000 shares.
My biggest reason for buying is bc I know someone who used to work there. I believe energy is entering a bull market because of a lack of production due to ESG policies.
I will buy more if it hits 9.00.

This will probably be my biggest energy investment.
But I also like SU CNQ PEY BIR TOU.


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## jimbob.seeker (Sep 12, 2013)

See what analysts like Eric Nuttall and Ryan Bushell are saying about FRU at Freehold Royalties (FRU-T) — Stockchase


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## MrMatt (Dec 21, 2011)

Feruk said:


> Payout ratio = Dividends per share / EPS. Not FFO. Looking at FFO is misleading because you don't take into account the $26 million capital cost they spent. Companies that rack up debt to pay a dividend usually run into the wall sooner or later.











Funds From Operations (FFO)


Funds from operations, or FFO, refers to the figure used by real estate investment trusts (REITs) to define the cash flow from their operations.




www.investopedia.com





EPS considers amortization/depreciation, which may or may not be appropriate.

The difference between FFO/EPS matters, but exactly how is up to the investor/analyst.


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