Top PickSecond stock in the clip. Trades at 20% below NAV. GLTA
https://www.bnnbloomberg.ca/video/michelle-wearing-s-top-picks~1695972
DREAM GLOBAL REIT (DRG_u.TO)
Dream Global is an owner and operator of a diversified high-quality portfolio of office and industrial properties located in key markets in Western Europe with a focus on Germany and the Netherlands. Due to limited supply and solid demand, the “Big 7” German office market vacancy reached 3.7 per cent at the end of 2018 and Big 7 prime rent grew 11 per cent year over year. Approximately 84 per cent of Dream’s portfolio is core and core-plus properties that are well positioned to benefit from favourable and improving fundamentals in many German and Dutch office markets. We believe Dream Global’s unit price is very attractive, as it trades at a 17 per cent discount to its $16.36 EPRA net asset value per unit and yields 5.9 per cent. We see upside to Dream Global’s unit price driven by a very favourable supply-demand imbalance in Germany and the Netherlands and redevelopment and value-add opportunities within its portfolio.
TOP PICK
Dream Global REIT (DRG.UN-T)
May 30, 2019
Office and industrials in Germany and the Netherlands. Advantage over Canadian peers because of negative interest rates in Germany. Yield is 5.9%. (Analysts’ price target is $16.08)
Michelle Wearing
Portfolio Manager, Starlight Capital
Price
$13.530
Owned
Yes