Bullboard - Stock Discussion Forum Dream Global Real Estate Investment Trust Tr Unit DUNDF

Real Estate REIT - Diversified

Dream Global Real Estate Investment Trust is a real estate investment trust primarily engaged in the acquisition, ownership, and operation of properties in Europe. The company's portfolio is mainly composed of office and mixed-use spaces. Dream Global REIT's German office properties represent the majority of its holdings in terms of total square footage. The firm derives nearly all of its... see more

Add To Watchlist

GREY:DUNDF - Post Discussion

Dream Global Real Estate Investment Trust Tr Unit > TD

View:

Post by retiredcf on May 09, 2019 8:40am

TD

This is a flash report so there's potential for them to raise their $16.50 target. GLTA

Dream Global REIT

(DRG.UN-T) C$14.04

Q1/19 First Look: SPNOI Growth +4.9%; EPRA NAV Rises 6% Q/Q Event

DRG reported solid Q1/19 results with FFO meeting our forecast and EPRA NAV/ unit rising 6% from Q4/18 to €10.91 ($16.36). Conference call is today at 8:00 a.m. (1-888-465-5079 or 416-216-4169 with passcode 7467649#).

Impact: SLIGHTLY POSITIVE

DRG's portfolio fair value increased by €123mm in Q1/19, driven by continued cap rate compression, market rent increases, leasing and value-add initiatives, and the previously-announced sale of the development site in Offenbach (greater Frankfurt). The average cap rate for Core/Core+ properties fell 40bps q/q to 4.7%. DRG's new EPRA NAV/unit is 5% above our last-published NAV/unit estimate of $15.40.
Based on last night's close, DRG trades 9% below our NAV and 14% below EPRA NAV.

Other Q1/19 Highlights:

FFO/unit was stable y/y at $0.26, meeting consensus and our estimate (see Exhibit). DRG delivered stable FFO/unit despite the strengthened Canadian dollar, reducing leverage by 670bps y/y and recycling capital into higher quality, lower-yielding properties. Leverage declined 150bps q/q to 41.5% (in-line with management's "low-40% range" target), while DRG had $128.5mm of assets under contract for disposition. The Offenbach property's sale price of €35.5mm is triple its book value at Q4/18.
SPNOI growth was +4.9%, while in-place occupancy increased 60bps q/q to 91.4% and committed occupancy increased 20bps q/q to 91.7%.
On April 30, 2019, DRG acquired "OH5", a 25,400 square meter (274,000sf) multi-tenant light industrial property in Kassel, Germany (a strong light industrial/ logistics hub). The €18.3mm acquisition was at a 7.0% cap rate, and offers expansion potential of up to 29,000 square meters of additional density. The property is 95%-occupied by tenants with strong covenants, and a WALT of over 7 years.