Dream Industrial Real Estate Investment Trust T.DIR.UN

RE:RE:DIR.UN- NAV

[Defiance2050]

SargeX wrote: Hey Dup

Thanks for sharing your comments on the currency. I didn't really think aobut that side of things but can see how it might affect revenue. I had thought that the Industrail REITs had all gotten clobbered because of extrapolating what was happening to Amazon and a slow down in online purchases.

I think this as it isn;t only DIR that has gotten creamed. It is down 26% YTD but GRT is down 24% and SMU is down 20% so quite similar.

One other thing that I find quite incredible is that when the NAV was $13.69 last year, DIR traded up to $17.60. Now the NAV is $16.64 and it's trading at $12.70.

The markets these days sure don't make any sense. I'm just happy my wife & I are buy & hold dividend income/growth investors.  :-)

Ciao
  Sarge

duplex5696 wrote: Based on a reported NAV of 16.64 current share price represents a price level 26% below the stated value of the Reit. Investors sold off on DIR over currency concerns related to their European holdings which comprise approximately 45% of total assets.DIR has told me that given the hedges currently in place concern over currency fluctuations has been over estimated.

You're right on industrial Reits taking a hit. However it is all Real Estate that is down. Majority of Apartment and Industrial have both low leverage, and a significant majority of debt is low fixed rates for 3 to 5 years duration. Inflation that supposedly is positive for REITs hasn't been. Definately a disconnect between private markets that still want these properties and the stock market that has been selling them. 

Covid was a great opportunity for both gains of companies that were at a discount that rose up and are still above historic valuations to sell to take advantage of others being discounted again. 

Results show that once leases expire rents are going to be going up and on the other hand of Amazon overextended is more of a US heavy problem. Sure last mile on direct to consumer might be a drain on demand, but retailers have to get supplied from somewhere.