Canaccord
Premium (discount) to NAV: Utilized cap rate:
Implied cap rate:
Units o/s (M):
Market capitalization ($M): Float capitalization ($M): Debt/GBV:
Major unitholders:
EARNINGS SUMMARY:
FYE Dec 31 2011A*
FFO/unit $ 0.35 P/FFO N/A AFFO/unit $ 0.30 P/AFFO N/A
FFO Q1
2011A -
2012A $0.22
2013E $0.20A
2014E $0.21
*For the period August
FFO = Funds from operations
AFFO = Adjusted funds from operations SHARE PRICE PERFORMANCE:
$9.51 - 11.41 $ 0.80 7.3% 9.5% $ 10.50 4.8% 7.3%
Dundee International has been extremely active in external growth and
raising capital to fund this growth. However, the timing of equity
7.1% offerings and acquisitions have had a material impact on results.
41% Dundee Corp, Dundee Realty
2012A 2013E 2014E
$ 0.82 $ 0.89 $ 0.94
13.4x $ 0.71 15.6x
12.3x $ 0.77 14.4x
11.7x $ 0.81 13.6x
our annual estimates, and on management's strategy to improve the quality of the portfolio without diluting cash flow.
Dundee International REIT reported Q1/13 FFO per diluted unit of $0.20, above our estimate of $0.18 and just below consensus of $0.21. Results were down 7% from the $0.22 earned in the year-ago period.
The y/y decline is largely attributable to a large amount of excess cash
95.8 $ 1,054
Therefore, we do not believe it is useful at this stage to put much focus
$ 913 on the REIT's quarterly per unit results. Rather, we are more focused on
Q2 Q3 Q4 on hand for much of the quarter which had a dilutive impact on cash
Source: Interactive Data Corporation
$0.21 $0.22 $0.23
flow per unit. The REIT carried an average excess cash balance of $135 $0.23 million, which management estimates would have added approximately
$3.3 million ($0.037 per diluted unit) to FFO during the quarter.
Transforming into a higher quality German REIT. Since its IPO in August of 2011, DI has completed the acquisition of more than $1.0 billion of high quality, well located German office properties at a weighted average going-in cap rate of approximately 6.7%. These acquisitions added approximately 3.3 million square feet of GLA to the REIT's portfolio, with a weighted average occupancy of approximately 95%, above the ~82% occupancy of the REIT's initial properties.
Not only are the acquisitions highly accretive, but more importantly, these properties are generally well located, are leased to a diverse set of tenants, and materially reduce DI's exposure to Deutsche Post.
Maintain HOLD rating and C$11.25 target price. We continue to utilize a
- $0.14 $0.21
$0.21 $0.24 $0.26
$0.24 3, 2011 - December 31, 2011
$0.19
COMPANY DESCRIPTION: 7.25% cap rate to value Dundee International's portfolio, and our
Dundee International REIT owns and manages a
portfolio of commercial real estate properties located
throughout Germany. At the end of Q1/13, the REIT’s
portfolio consisted of 15.0 million square feet of GLA.
The REIT’s largest tenant by gross rental income is
Deutsche Post.
All amounts in C$ unless otherwise noted. rate Dundee International REIT a HOLD.
updated estimate of NAV per unit is $10.50, down from $10.76. The small drop is due to a slight decline in the value of the euro. Our target price of C$11.25, combined with an annual distribution of $0.80 per unit, equates to a 12-month total return forecast of 9.5%. We continue to