OTCPK:NNVUF - Post by User
Comment by
YieldChaseron Nov 19, 2015 8:47pm
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Post# 24307663
RE:SP
RE:SP
Sunnyboy wrote: Looked at the ratio between the AFFO and the SP for Canadian Apartment REIT CAR.UN, Boardwalk apartment REIT BEI.UN and North View apartment REIT NVU.UN.
Car.UN is at a 14.71 multiple, BEI.UN at a 14.75 multiple and NVU.UN at a 7.15 multiple. IF NVU.UN would be trading at the same multiple as the other apartment REITS the SP would be around $40.00. Looks like there is some room to move up for NVU.UN?
True IN THEORY. In practice expect some headwind in northern communities in resource centers where NPR used to play heavily. Also quite a heavy Alberta concentration of both NPR and TrueNorth, yet less than 20% overall. Indeed stock is far too low, due to these perceived weaknesses across the entire portfolio, as apartment building REITs tend to be well below 5% distribution, often even sub 4%. This is a sustainable $1.60/year, based on a 68 cents FFO in last quarter (or over $2.70 in a year).
Expect them to issue a normal course issuer bid soon to bid stock up to north of $30, with a then still 5%+ yield.
$25+ target for sure, likely $30+.