TD Upgrade Equity analysts at TD Securities made a series of adjustments to their TSX-listed real estate stocks on Friday.
“With the Delta variant driving a delayed recovery from the impacts of the pandemic, together with supply chain problems interrupting economic activity, we are revising financial forecasts throughout much of our coverage,” they said. “We are also introducing estimates for 2023 and adjusting some target prices.
“Overall, our two preferred property sectors in terms of fundamentals continue to be Industrial and Apartments. We also like Seniors Housing (post-pandemic) and grocery-anchored Retail with residential/mixed-use developments.”
Jonathan Kelcher made these changes:
- Boardwalk Real Estate Investment Trust ( “action list buy”) to $60 from $59. The average on the Street is $53.93.
- Canadian Apartment Properties Real Estate Investment Trust ( “buy”) to $72 from $70. Average: $67.45.
- Cominar REIT ( “hold”) to $11 from $11.50. Average: $11.50.
- Extendicare Inc. ( “hold”) to $8.50 from $9. Average: $8.60.
- Morguard Real Estate Investment Trust (“hold”) to $6.50 from $7. Average: $6.25.
- Sienna Senior Living Inc. ( “buy”) to $17.50 from $18. Action: $16.53.
- Tricon Residential Inc. ( “buy”) to $19.50 from $18. Average: $17.64.
Sam Damiani’s changes were:
- Dream Industrial Real Estate Investment Trust (“buy”) to $19 from $18.50. Average: $17.72.
- First Capital Real Estate Investment Trust (“action list buy”) to $21 from $22. Average: $21.33.
- Granite Real Estate Investment Trust ( “buy”) to $105 from $101. Average: $96.50.
- Summit Industrial Income REIT ( “buy”) to $25 from $24. Average: $23.19.
Lorne Kalmar raised his target for Mainstreet Equity Corp. (MEQ-T, “hold”) to $115 from $110. Average: $120.20.
“Our two ACTION LIST BUYs remain BEI.un (value) and FCR.un (re-opening upside). Other larger-cap top picks include CAR.un, DIR.un, GRT.un, KMP.un, and REI.un. We also see attractive risk/reward in most of the Seniors Housing and Office REITs/REOCs, and see potential near-term catalyst-driven upside in the Diversified sector (particularly HR.un and potentially CUF.un).”