Whiterock Real Estate Investment Trust T.WRK.DB.K

RE: white rock reit ratings

[canadafan]

some how my post got sandwiched in-between a couple of guys throwing barbs at each other over what to expect from investments.
As with anything always in the risk/reward tolerance of the individual.
Perhaps one of the two (or both) would like to coment on the recent analysts ratings. All within the past month. In response to the Q2 numbers.

CIBC - Avery
Whiterock REIT – Sector Outperformer-Speculative – $17.50 Price Target (From $16.50)
Delivering On Growth Strategy; Leverage Moves Lower; Attractively Valued
Q2/10 FD FFO was
.41/unit, up from
.39/unit a year ago and in line with our
.41/unit estimate. Q2 results were boosted by 4.3% same-portfolio cash-NOI growth in Q2 (3.4% on a GAAP basis) and acquisitions. Strong internal growth was driven mainly by rental lifts on leasing.
Whiterock's overall occupancy was 95.9% at Q2/10 compared to 97.0% at Q2/09 and 95.3% at Q1/10. The REIT has renewed or re-leased 64.4% of 2010 maturing leases, achieving an average rent increase of 27.3% over expiring 2010 lease rates.
At $14.75, WRK trades at 8.3x 2010E FD FFO, at an 8% discount to our NAV estimate ($16.00/unit at a 7.75% cap rate) and yields 11.4%. Our 12- to 18-month price target is $17.50 (from $16.50) or 9.5x-10.0x 2010E FD FFO. We rate Whiterock REIT Sector Outperformer-Speculative.

Cannacord Capital:
Maintaining BUY and raising target to C$17.25 from C$16.50. We continue to like the steps the REIT has been taking with respect to the following factors: (i) deleveraging; (ii) high-quality acquisitions; (iii) a near-sustainable AFFO payout ratio. We believe management will be successful in growing the company into a high-quality mid-cap REIT in the foreseeable future. We have increased our target price to C$17.25 from C$16.50 based on based on a modest premium to our $16.65 pre-tax NAV estimate using a 7.50% portfolio cap rate.

Dundee Securities:
We reiterate our $16.25 target price along with our neutral rating. We derive our $16.25 target price by applying a multiple of 10.0-10.5 times (down from 10.5-11.0 previously) to our 2011E AFFO/FD unit estimate of $1.59.

While we believe that the current unit price provides risk-tolerant investors with upside potential, we advise investors to take a "Wait and See" approach to when the incremental cash flows of the recent acquisitions are fully reflected in WRK's financial results (likely Q3/10). That said, WRK's units look compelling compared to many of its pure-play office REIT peers and we expect that the valuation gap will narrow with time should WRK be able to demonstrate continued progression to earn its distribution.