TSX:MI.UN - Post Discussion
Post by
retiredcf on Jan 24, 2023 10:34am
More Scotia
Scotiabank REIT analyst Mario Saric is bullish on apartment REITs,
“We think Apartment REITs can standout in 2023. CAD Apartment REITs are up 10 per cent year-to-date vs. 7 per cent for CAD REITs and 3 per cent for U.S. Apartment REITs, recovering some 2022 weakness (down 22 per cent vs. down 16 per cent vs. down 34 per cent). We think one driver = accelerating market rent growth vs. decelerating U.S. growth. Our 2023E AFFOPU [adjusted funds from operations per unit] = 116 per cent of 2019 (i.e. pre-COVID), the 3rd-best in Canada, while 8-per-cent multiple erosion matches sector avg.. Occupancy and rent exceed pre-COVID for BEI, CAR, and KMP, with IIP and Minto close on occupancy. While cost pressure is topical (sentiment was split; some felt it peaked; others less sure) strong SSREV [same store revenue] could drive the highest rate of change in SSNOI [same store net operating income] growth ex. Office”
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