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

RE: SH scores

[canadafan]

Not sure what is meant by a "SH" score?
But I agree with your comnets "good time to buy REITS , notably White rock reit."

First reits in general:

True reits make income from the spread on what they can borrow $$ for against the rental income from the properties.
Some think REIts income is determined from property values. For the most part that is furhtest from the truth.
The modle is simple: They manage properties, collect the rents and pay operational costs. From that N.O.I. net operational income, they pay the debts/interest on debts associated with the properties and the REIT as a whole.

Well managed REITs are deversified by geography, location and tenant structure.
On the loan side most REITs have debt spread accross many years. With less than 10% of all debt coming due in any one year.
Presetly the interest rates are historically low. Most REITs are seeing declining rates as they renew into the lower numbers than they got in at , just a few years ago.
same story on the tenant side. White rock for example has its largest tenant with just over 6% of total rental income.

REITS in Canada IMHO will do well for a minimum of the next 3 years. i could say more but in reality who can see that far ahead.

White rock REIT...a good time to buy?

Yes for sure: the unit price is trading well below its high ,in a time when the business is doing better than it ever has.
WRK is the highest yeild in the Canadain TSX traded REITs, which has a AFFO payout ratio bellow 100%

At its recent price of $12.35 , representing a yeild of around 9%, is a sceaming buy.\At $15 it would still be a screaming buy!!!
The industry average is 6.5% dist/price. That would put wrk at $17.26. When it gets there, it would still be a buy...because 6.5% is still very good in this low return market.