TSX:DIR.UN - Post Discussion
Post by
retiredcf on May 05, 2021 12:04pm
TD
As this is a flash report, there is some potential for them to raise their current $15.00 target. GLTA
Dream Industrial REIT
(DIR.UN-T) C$13.81
Q1/21 First Look: Occupancy and SPNOIG Momentum Accelerates Event
Q1/21 Results. Conference call is 11:00 a.m. (1-888-465-5079, passcode: 6843075#)
Impact: SLIGHTLY POSITIVE
DIR reported Q1/21 diluted FFO/unit of $0.188, in-line with our $0.187 estimate and $0.19 consensus, and up ~10% from $0.17 y/y (flat q/q) ( Exhibit).
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In-place occupancy continued its upward pace, rising +100bps q/q to 95.7% (+160bps since bottoming at 94.1% in Q3/20). Committed occupancy increased +160bps q/q to 97.2%. Regionally, Quebec, the United States, and Europe, led the occupancy gains.
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Q1 same-property NOI growth was +3.1% y/y (constant currency basis) − the strongest y/y growth rate since Q3/19. Same-property base rents were +3.8% y/ y, more than offsetting the 0.9% decline in same-property occupancy.
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Leasing momentum has continued with ~2.0mmsf of new leases completed at an average 20% rent increase since the end of Q4/20. DIR provided examples of 20% uplifts in Montreal and the Netherlands, 30% uplifts in Columbus, Ohio, and over 100% uplifts in the GTA West market (Mississauga). A new five-year lease commencing June 1, 2021 for the recently-vacated Spectra Premium Industries building in Laval (now 165,000sf) was also announced.
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Rent collections were 99.1% for Q1, while Q4 collections have increased to 99.4% vs. 99% initially reported, and Q3 collections improved to 96.6% vs. 96.3% initially reported.
Acquisitions Update: DIR has completed ~$350mm of acquisitions YTD (4.5% average cap rate), including $274mm during Q1/21. A further $155mm are scheduled to close in 45-60 days.
Developments Update: Three developments/intensifications are underway that will add 728,000sf of GLA. The total near-term pipeline of eight projects represents 1.3mmsf of incremental GLA. Plus, post-Q1 DIR acquired a 30-acre parcel in Brampton, Ontario for $35mm ($1.2mm/acre and ~$65/sf buildable for the 550,000sf planned). Construction commencement is targeted within 12-18 months.
Balance Sheet: The net debt-to-assets ratio was -260bps q/q to 28.7%, reflecting acquisitions closed, more than offset by the January equity offering.
IFRS fair value gains totaled $75mm in Q1 (mostly in Ontario, Quebec, and Europe), pushing IFRS NAV up 2.2% q/q to $12.82/unit (portfolio average cap rate -6bps q/q to 5.69%).
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