TSX:NXR.UN - Post by User
Comment by
Karren411on Nov 23, 2021 10:13am
153 Views
Post# 34156721
RE:Another Upgrade
RE:Another Upgraderetiredcf wrote: Desjardins Securities analyst Michael Markidis expects the earnings trajectory of Nexus Real Estate Investment Trust to be “lumpy” in the next few quarters, citing “the portfolio transformation underway and the continued focus on scaling the industrial offering.”
“However, we expect it to further benefit from a multiple re-rating as it becomes a pure-play industrial REIT,” he said.
Mr. Markidis resumed coverage of the Oakville, Ont.-based REIT following its recent $163-million equity offering.
“The net proceeds from the equity offering are slated to partially fund the REIT’s current seven-property acquisition pipeline, which comprises approximately 1.7 million square feet with an expected purchase price of $315-million (4.7-per-cent going-in cap rate),” he said. “Two assets ($40.5-million) are subject to conditional purchase agreements. We believe NXR is at various stages of negotiation on the remaining properties and would expect staggered completion dates through early to mid-2023. Assuming execution of the pipeline, NXR’s pro forma industrial exposure will be 83 per cent.”
After incorporating its third-quarter results and the impact of both the equity offering and acquisition pipeline, Mr. Markidis cut his funds from operations projections through 2023.
He maintained a “buy” recommendation and $14.50 average for Nexus units. The average is currently $14.45.
Thanks for the update but it appears his target price and buy rating has remained the same, so its not really a "Upgrade".