RE:Defiance and DuplexSuperDude2 wrote: So exactly where are all the growth and momentum boys , touting empire building . l guess we all have our objectives but l stick to a balanced approach. Every aquisition told accretive so why not reward us with an increased dividend , no increases in 5 years and l believe in here and now , not some promise of a rosey future a year or 2 down the road. Only a 9% gain on todays price to be back prior to the last issue. It may have escaped some but in the last 70 years 50% of all returns came from dividends reinvested. Old school , dont matter to some , a new world. a new time. BS , just the get rich now dont work for it. I am old enough to rember yhe old Smith Barney commercial, It ended we EARNED IT
SD on a comparative front due to the dividend cuts retail reits endured (excluding majority owned by biggest tenant CT, CRR, choice) Nexus had one of the highest dividend growth since becoming a public company at 0, and one of the better performing SP (ignoring significant outperformance from industrial acquisitions and share issuance). Once there is a lower level of cash there is a possibility of a dividend raise (AFFO would improve).
On a comparative front cap rates are much higher on retail and office vs industrial. The concept of empire building is something you keep mentioning; Nexus is just acquiring properties similar to what other REITs have done (in a more compressed timeline).
It is more difficult to compare accreditive on per-share fundementals in Real Estate. Valuations, income and expected growth are different for sectors and location. The industrial has been acquired between 4-7 cap versus retail and office at a 7-9 cap rate. Industrial REITs on the TSX have a yield from 2.5 to 4.25% and Nexus at around 5%.
Real estate over the past decade has shown less for office and retail versus industrials and apartments. Apartments have been on the up trend for longer than industrial but at a different rate. On an overall return front apartments and industrial may have lower current dividend yields but over time they have grown and the share prices have grown to a greater extent. The cap rate on apartments especially GTA are entering into 2-3 cap range. Lets say at a point it was at a 5-6 cap range (lets exclude for simplicity any growth in rents which have been significant) the property would be worth around double for the same income.