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

recnet deals & "BUY" RATING

[canadafan]

recent wrk news and Cannccord "buy"

Note: Canncord is the most conservative of the estimtes. TD has them at $15.
if anyone wants the full PDF report , PM or in-box me. I do not know how to get it on this page.

Slowly Becoming a Dominant GTA West Office Landlord; BUY
Valuation $14.25

WRK currently trades at the lowest P/2011E FFO (10.3x) and P/2011E AFFO (12.1x) multiple of all of its Canadian peers. These multiples represent 2.3 and 3.1 multiple points discount to its Canadian Office Peer Average.
We think that this discount should dissipate for the following reasons: (1) continue to prove to investors that it’s indeed a sustainable growth story (2) leverage begins to fall in line with its peers and distribution is covered (3) steps are being take to eliminate perceived conflict of alignment issues. The REIT has been delivering on factors 1 and 2, however, the third factor, the perceived conflict of interests, is a work-progress
Target Price Justification- Target Price Unchanged
Our $14.25 target price is unchanged and is derived by applying a 12.0-12.5x multiple (down from 13.0-13.5 previous) to our new 2012E AFFO/unit estimate of $1.15. Our target multiple represents ~2.7 times multiple point discount to Whiterock's Canadian Office peer group average 2011 AFFO multiple of 15.2 times.