Morguard North American Residential Real Estate Inv 6 00 Convertible Unsecured Subordinated Debentures T.MRG.DB.B

RE:Undervalued?

[HermannHaller]

Still waiting for an answer from May of 2020? Haha. I guess lack of attention to this stock is one of the reasons it is undervalued.

MRC, the parent, and its two REIT subs: MRT.UN and MRG.UN, are all very cheap relative to NAV. There are a few reasons:

• small float means not included in TSX, and therefore ignored by many institutions and analysts
• limited growth relative to some REITs with more active development
• non-prime markets, maybe Sahi prefers the cheaper suburbs
• MRC is cheap also because it pays a very slim dividend
• MRT.UN has exposure to Alta office and retail

I think MRG.UN is an excellent buy here at $14.74...low valuation, low payout, low debt, stable properties. Limited growth but I'll collect my distribution, and maybe MRC will take it private one day.

[DuaneParnham]

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[HermannHaller]

Unfortunately MRT.UN just cut its distribution in half, the second time in 12 months. That REIT is down 13% today. And while MRG.UN is a different business, in different geographies, I can't help but think that there is a bit of a taint on the whole Morguard name. Or more of a taint I should say. Morguard of course did not cause the pandemic, but MRT.UN has certainly proven to be the worst hit

[ntcse123]

I took a position, nice residential REIT, will do well going further in 2021 as its single propery in Alberta and its properties in Ottawa were affected by student living decreases.  Also its very nice premium properties in Chicago usually get business from corporations and are in the theatre district so that business will come back too.  They have a residential property coming online

[TJPatrols]

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[Johnnycashjr67]

As well took a position here. I see a lot of upside here albeit slow. Feel it hasnt garnered the attention it deserves but market will catch up in time. Good to be here... cheers  JJ 

[TJPatrols]

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[oldinvestor64]

Being in this stock for more than 5 years , I could never understand why it trades at such a huge discount to its BV. Maybe the fact that the controlling company, Morguard Inc is restricting it's growth Any views?

[Johnnycashjr67]

I think you are on track with that logic. Sahi operates quite differently than others in that he creates share value slow and steady. I think their div is 39% in comparison to many others in this industry closer to 85% payout ratio. And yet debt to equity still high end. I think once this is corrected this guys gonna increase the div and I imagine the stock price will react accordingly. Forecast