Cibc sours on offices REITS yahoo CIBC sours on office REITs, cuts multiple price targets
CIBC analysts are reducing their price targets for Canadian office real estate investment trusts across the board, as investor sentiment on the sector remains low and the impact of remote work takes a toll.
“While it is clear that overall investor sentiment has soured towards the office sub-sector due to a plethora of macroeconomic variables, we would be remiss not to mention that much of the pessimism regarding the Canadian office REITs does indeed stem from declining fundamentals,” Dean Wilkinson, real estate analyst at CIBC Capital Markets and lead author of the note, said on Wednesday.
He lowered his 12-month price target on Allied Properties REIT (AP-UN.TO), Dream Office REIT (D-UN.TO), Slate Office REIT (SOT-UN.TO) and True North Commercial REIT (TNT-UN.TO).
Allied and Dream were also hit with rating downgrades to neutral, from outperformer, bringing them in line with the other two names.