Granite Real Estate Investment Trust T.GRT.UN

RE:Top Pick

[Possibleidiot01]

TOP PICK

Granite REIT(GRT.UN-T)

12/05/2023

 

 

Likes fundamentals of industrial real estate business.
Large customers like Amazon not going away.
Demand for manufacturing very strong with shift back to North America (away from China).
Long term leases with predictable revenues. 
 

property mngmnt / investment

 

$81.310

Owned

Granite REIT (GRT.UN TSX)

Focus on high-quality assets in key markets where supply is more constrained (often near large metropolitan areas); this supports low vacancy rates and strong rent growth. Fifteen per cent of revenue from the GTA with in-place rents that are significantly lower than market rents; this supports rent growth at lease renewals. Looking to diversify and de-risk the portfolio away from specialty purpose assets (that largely serve Magna) towards modern distribution and logistics properties over time given strong secular demand. Overall, they stand to benefit from tailwinds, including growth in e-commerce, re-shoring of supply chains/manufacturing. Strong management team with a proven history of shareholder value creation at the previous employer (Pure Industrial REIT). One of the cleanest balance sheets in the Canadian real estate sector; a conservative payout ratio means well-supported dividend throughout the cycle. Very well positioned in the event of a weaker economic backdrop to acquire distressed assets.