OTCQX:PMULF - Post by User
Post by
DanielDarden123on Aug 29, 2018 10:22pm
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Post# 28540141
CIBC
CIBC Pure Multi-Family REIT announced the completion of its strategic review process, which commenced on April 5, 2018, resulting in the termination of the formal process to explore the potential sale of the REIT. While we acknowledge the conclusion of the prolonged strategic review is arguably not what many (perhaps not all) investors were expecting, and has created the potential for very near-term headwinds for RUF's unit price, we find the current ~13% discount to NAV (vs. its CDN peers' ~1% discount to NAV) to represent an attractive entry point for investors with a long-term horizon.
We view the current price reaction of the REIT’s units to the termination of the strategic review as arguably appropriate given the prevailing expected outcome (ours included), however we also view the opportunity as a good entry point for investors with a longer time horizon reflecting the overall quality of the REIT’s assets, the strength in its underlying markets and organic growth potential balanced against the potential for near-term investor turnover and a general rebasing of investor expectations.