TSX:CAR.UN - Post by User
Post by
Mephistopheles3on Aug 12, 2022 9:19am
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Post# 34890956
CAR Q2 - quick summary of analyst call - "super sale"
CAR Q2 - quick summary of analyst call - "super sale"Just for those who didn't listen to the investor call before, there wasn't too much new that was in there. Julian, the new Chief Investment dude was on there and I thought he did quite well. He has only been with the company for what.. a few weeks now and he seemed like he was an old timer. What I think is really interesting about his role is that he is specifically targetting recycling and getting rid of properties (in addition to investment).
The one thing I'll say that Mark repeated about ten times is focusing all cylinders on the NCIB and share buybacks. He said "super sale" and that it's "... in real estate, this is just a no brainer". He seemed fully commited to buying back shares where in the prior quarter, it was a softer stance - it was more "we'll do share buybacks here and there with capital when we have it"..
Last point which I thought was interesting was with regards to buying newer assets. If there are regulatory changes and further rent control, buying only new properties right now is a great move. Why? Because the rent's are all at market anyways. The reason cap. rates are so low on the older properties is that you have huge amounts of tenants paying way below market rates.. meaning that there's lots of untapped value in these properties that gets realized as older tenants turn over. So further restrictions on rent control on these properties will hurt their valuations much more than new properties.
Results for Q2 were soft, not awful but not great.. but we're still looking pretty good across the next year or so.