TSX:GRT.UN - Post Discussion
Post by
retiredcf on Nov 20, 2023 9:01am
More CIBC
CIBC analyst Sumayya Syed surveyed the REIT sector and offered some top picks,
“We estimate 2024 FFO [funds from operations]/unit growth to average approximately 3 per cent, led by industrial REITs at 6 per cent, and office REITs trail the group at a 4-per-cent AFFO [adjusted funds from operations] decline. We lowered our NAVs by 8-9 per cent … Interest coverage ratios are in better shape, averaging 3.5 times vs. 2.5 times historically. PMZ [Primaris REIT] stands out for its better-than-average balance sheet and FFO/unit growth, yet it trades at one of the highest implied cap rates (10 per cent). Dream Office trails the group at 11.6 times D/EBITDA and 2.1 times interest coverage… Industrial REITs continued delivering sector-leading SP [single-property] growth of 8 per cent on average, followed by retail REITs at 3 per cent. For industrial, though year-over-year rent growth is moderating, 2024 renewals have achieved strong spreads, positioning GRT and DIR to deliver another year of above-average SPNOI [single property net operating income] growth … Industrial REITs are trading at a 5-per-cent premium to the sector. Defensive names continued to be favoured, as CHP [Choice Properties REIT] and CRT [CT REIT] trade at much smaller 12-per-cent discounts. Office rounds out the bottom at a 35-per-cent discount as sentiment remains negative”
The analyst has “outperformer” ratings on these stocks:
- H&R REIT
- Automotive Properties REIT
- Granite REIT
- Crombie REIT
- Dream Industrial REIT
- Primaris REIT
-
Be the first to comment on this post