TSX:SRU.UN - Post by User
Comment by
logicandinertiaon Aug 08, 2020 12:55pm
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Post# 31382906
RE:RE:RE:An interesting one
RE:RE:RE:An interesting one To be frank, if you actually believe in these eventualities, don't go near REITs.
my thesis is predicated on:
(a) faith in Mitch and the continued move toward mixed development centres.
(b) the worst of covid is behind us, as illustrated by the case numbers. Govt restrictions will continue to recede.
(c) cost of capital remains low, even after covid and refinancing are getting done on the REIT sector.
(d) GTA density, especially in the surrounding large cities , continues to increase and govt shows no signs in slowing immigration.
(e) more residential development will be seen from SRU in next 5-7 years .
(f) trading at a substantive discount to net asset value .
(g) distribution is safe.
(h) lastly, the government recognizes that real estate is now the largest single part of Canada GDP. They will remain pro real estate. Many of these large developers are obviously close to those in power. Whether it has been the bank of Canada hoovering up mortgage bonds over past few months or other steps, this will continue.
(I) the us and Canada is awash in liquidity , and most financial assets will benefit from this largesse. Not saying this is a good thing for society, but you need to swing at the pitch you are thrown. Assets are being inflated...
good luck...