GREY:MSTUF - Post by User
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retiredcfon May 09, 2014 9:01am
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Post# 22542723
CIBC
CIBC
| Milestone Apartments REIT Like A Rolling Milestone |
| Q1/14 FFO was $0.259/unit, ahead our $0.256/unit estimate, driven by an increase of +0.4% SP-NOI growth. SP-NOI was boosted by higher rents, offset moderately by higher operating expenses. Average occupancy in Q1/14 was 95.2%, up 70 bps from the previous quarter. Average occupied monthly rent/suite increased to $738 in Q1/14, up from $732 at Q4/13. Same-property rents increased from an average of $723 in Q4/13 to $729 in Q1/14. Subsequent to Q1/14, the REIT entered into separate agreements to acquire two apartment properties for $78.3 mln. Debt/GBV assets was 55.5% at Q1/14, down marginally from 56.0% in Q4/13 and below the REIT's limit of 65.0%. MST's cash balance was $5.5 million at Q1/14. Its cash interest coverage was a strong 2.9x in Q1/14, down from 3.0x (annualized) in Q4/13. At C$10.37, MST trades at ~9.3x our 2014E FFO (F/X adjusted), and at a discount to our $11.50/unit NAV estimate (at a 6.5% cap rate), and yields 6.3%. Our 12- to 18-month price target is C$12.25 (unchanged) or ~11x 2014E FFO (F/X adjusted). We rate Milestone Sector Outperformer |