Just Energy Income Fund (TSX: JE-U, OTC: JUSTF) had the distasteful task of announcing a 10 percent distributable cash flow (DCF) decline for its fiscal fourth quarter the morning another steep selloff for global equities took the broad indexes into official correction territory.

That its announcement and follow-up conference call happened as the market digests a steady stream of bad news–debt crises galore in the euro zone, a costly oil spill, new government intervention in the economy, the threat of a second down-leg that turns this into a “Big W” double-dip recession–explains, at least in part, yesterday’s 8 percent intraday swoon for Just Energy’s unit price.

The macro picture is important. But as investors who understand “growth” to be the precursor for sustainable and rising dividends, we’re more concerned about the health of Just Energy’s particular business operation and its continuing ability to generate cash.

The news on this front is good, as the market seemed to realize Friday morning, pulling the units back above CAD12 on yet another turn in crisis-of-the-moment-driven sentiment. As Just Energy Executive Chairman Rebecca Macdonald put it during Thursday afternoon’s call, “We continue to trade with a 10 percent yield when our growth and consistency of payment are as good as anybody out there.” Fiscal 2010 numbers back up this assertion.

Sales for the fiscal year ended March 31 were a seasonally adjusted CAD2.3 billion, up 24 percent from fiscal 2009. Just Energy added an annual record 505,000 customers via beefed up marketing efforts to bring the overall base to 2.3 million, a 28 percent increase from a year ago. The completion of the acquisition of Hudson Energy after the conclusion of the fiscal year brings another 680,000 customers into the fold.

Net customer additions through marketing were 73,000 for the year, up from 57,000 last year. Weakness in the US, based on rising unemployment and foreclosures, pushed natural gas customer attrition to 30 percent, above management’s target of 20 percent.

Nevertheless, gross margin was up 35 percent to CAD425.9 million and increased 16 percent on a per-unit basis. DCF after gross margin replacement of CAD230 million (CAD1.78

per unit) was up 18 percent higher, 2 percent on a per-unit basis. DCF after all marketing expenses was up 16 percent to CAD197 million.

The “Just Green” program showed continuing success, as 39 percent of the company’s new customers took an average of 81 percent of their energy supply from green sources under the program.

The fiscal 2010 payout ratio was 82 percent, in line with fiscal 2009.

Management forecast DCF after replacement growth of 5 to 10 percent for fiscal 2011, a conservative estimate that accounts for still unfavorable weather conditions in core markets that’s carried over from fiscal fourth-quarter 2010 into the first quarter of 2011.

The Hudson Energy acquisition, completed after the close of the fiscal year, brings four states into Just Energy’s footprint and adds 680,000 customers, 85 percent of which are commercial. Going forward the Hudson expansion will mitigate the pressures Just Energy saw during fiscal 2010 and the fourth quarter, namely attrition due to rising unemployment/foreclosures and exposure to weather. Commercial customers aren’t as vulnerable as households to these factors. Hudson will drive the 5 to 10 percent DCF growth in fiscal 2011; acquisition costs of CAD3 million to CAD4 million won’t stop it from being immediately accretive for unitholders.

Just Energy’s approach to conversion reveals a great deal about management’s conservative approach. Decision-makers held the payout steady from 2008 in anticipation of the transition to corporate form; this now provides flexibility to keep the current distribution level steady once the process is complete.

Conversion is likely to broaden the investment base for a company whose underlying value is underappreciated in the current environment. Just Energy Income Fund is a buy up to USD14.

The rest of the Canadian Edge Conservative Portfolio reported similarly encouraging numbers featuring developments that support long-term dividend growth.

Artis REIT (TSX: AX-U, OTC: ARESF) took advantage of favorable conditions to expand during the first quarter, adding eight income-producing properties covering 231,000 square feet of retail space and 1.1 million square feet of industrial space in Saskatchewan, Alberta and British Columbia. Total cost for the new properties was CAD158.3 million in cash and mortgages totaling CAD104.2 million.

The REIT raised CAD115.8 million in equity capital via the issue of 5.3 million units at CAD11 per in January and 4.6 million units at CAD11.25 per in March. Management used proceeds to pay down CAD30.7 million drawn on a line of credit and a CAD20 million vendor take-back mortgage.

Overall revenue was up 7.8 percent year over year to CAD37.3 million, while same-property net operating income (NOI) rose 6.1 percent; overall NOI was CAD25.7 million, up 8.8 percent. Funds from operations (FFO) for the quarter were CAD14.1 million (CAD0.33 per unit), flat with the CAD14.2 million (CAD0.43 per unit) recorded a year ago. The payout ratio for the quarter was 81.8 percent, up from 62.8 percent a year ago. Portfolio occupancy was 96.2 percent as of March 31.

Management reduced mortgage debt-to-gross book value to 45.4 percent at the end of the first quarter, down from 47.4 percent on Dec. 31, 2009. Interest coverage rose to 2.35 from 2.22 at the end of 2009. Artis REIT is a buy up to USD12.

Atlantic Power Corp (TSX: ATP, OTC: ATLIF) performed in line with management’s forecast, as has become ritual. Once again, Atlantic reiterated that its current payout is sustainable until 2015, even with the extremely conservative assumption that there are no new cash-generating assets to be acquired in the interim. In other words, long-term power purchase agreements in place for existing projects will support regular dividend checks from the next 40-odd months.

As well, management noted that Atlantic’s listing on the New York Stock Exchange remains on track for completion during the second quarter. Atlantic filed an initial registration statement with the US Securities and Exchange Commission; once approved management will list on the Big Board.

Adjusted EBITDA (earnings before interest, taxation, depreciation and amortization) was down by CADD2.3 million to CAD38.8 million, in line with management expectations. Two projects that contributed to first-quarter 2009 EBITDA were sold during the fourth quarter, while a contract on another project expired during the fourth quarter. Higher fuel costs also impacted results, though management is employing a hedging strategy designed to ameliorate these effects going forward.

DCF was off by CAD6.3 million compared to the same period last year because of the factors that affected adjusted EBITDA. The payout ratio was 89 percent.

Management expects to receive distributions from its projects in the range of CAD70 million to CAD77 million for 2010 and will register a payout ratio near 100 percent for the year.

As for 2011, management forecasts a year much like 2010. Higher project distributions and a slightly lower payment under the management agreement termination are expected to be offset by the non-recurrence of the cash tax refunds anticipated in 2010. In 2012, still higher distributions from projects are expected to increase operating cash flow and reduce the payout ratio significantly compared to 2010 and 2011. Atlantic Power, the very definition of a stable business backed by reliable cash flow, is a buy up to USD12.

Brookfield Renewable Power Fund (TSX: BRC-U, OTC: BRPFF) reported total generation of 1,661 gigawatt hours, 8 percent above its long-term average, with output up across all geographic regions. Assets acquired during 2009 accounted for roughly a third of total generation.

Revenue for the quarter was CAD111 million, up from CAD58 million a year ago, while income before non-cash items rose to CAD54.3 million from CAD29.8 million.

First-quarter distributions were CAD34.9 million (CAD0.32 per unit), up from CAD17.5 million (CAD0.31 per unit) in the first quarter of 2009. Distributions increased as a result of the additional units and exchangeable shares issued in connection with 2009 acquisitions. The fund increased its monthly distribution from CAD0.10417 to CAD0.10833 in February.

Management spent CAD3.8 million in sustaining capital expenditures and CAD600,000 on major maintenance; it expects to invest CAD27.6 million in sustaining capital expenditures and CAD7.4 million in major maintenance during 2010.

The fund continues to build out wind-generation capacity; the Gosfield project will add 240 megawatts in September, and another 165 megawatts is now under contract with the province of Ontario and ready to be dropped down from the fund’s sponsor Brookfield Renewable Power.

Management has access to approximately CAD150 million in acquisition funds, comprised of CAD100 million in cash and a CAD50 million credit facility.

A great pure play on renewable power and a reliable dividend-payer, Brookfield Renewable Power Fund is a buy up to USD20.

Keyera Facilities Income Fund’s (TSX: KEY-U, OTC: KEYUF) comparables suffer because of the time-lag affects of the global economic slowdown: It was too late to cancel or delay a lot of activity scheduled for the first quarter of 2009, but the first 12 weeks of 2010 only enjoyed the first sparks of renewed growth. First-quarter DCF of CAD59.6 million (CAD0.90 per unit) was down from CAD117.1 million (CAD0.1.86 per unit) in the 12 weeks ended Mar. 31, 2009. Distributions to unitholders totaled CAD30 million, a payout ratio of 50 percent, up from 24 percent a year ago.

Cash from operating activities was CAD81.9 million (CAD1.23 per unit). Net income for the period was CAD36.7 million (CAD0.55 per unit), down from CAD54.4 million (CAD0.86 per unit) a year ago.  Net throughput was down 5 percent for Gathering and Processing, 22 percent for NGL Infrastructure. Marketing enjoyed sales-volume growth of 8 percent.

Gross throughput G&P plants increased from the fourth quarter of 2009 because of increasing activity in the areas where Keyera has a presence. NGL Infrastructure’s fourth-quarter numbers (contribution to overall cash flow was up 15 percent) were supported by strong demand for storage, terminalling and pipeline services, good fee-based ballast for rough times.

Management expects the 40 million cubic feet per day expansion of its Caribou gas plant in British Columbia to be complete by mid-2010. Work continues on expanding Keyera’s natural gas liquids (NGL) delivery infrastructure in Alberta, and the company is expanding its oil sands activity through a deal with Imperial Oil (TSX: IMO, NYSE: IMO) to provide solvent handling services at Imperial’s Kearl project.

Keyera plans to spend CAD80 million to CAD100 million on expansion initiatives in 2010. A strong balance sheet should allow it to pursue its growth plans, as net debt-to-EBITDA as at March 31 was 1.4 times.

Keyera also announced that unitholders have approved its conversion to a traditional corporation, which will now take place Jan. 1, 2011. Management expects to maintain the dividend at the same level as the current annual distribution–CAD1.80 per unit–when it converts. Keyera Facilities Income Fund is a buy up to USD24.