Dream Global Real Estate Investment Trust Tr Unit DUNDF

RE:RE:RE:RE:RE:RE:Financial Results posted ...

[teekae]

I too own AAR, DIR, DRG and throw in AX 

The whole REIT sector is finally getting the love it deserves. I dont think this is as much a company specific story, tho with DRG, the leases of empty space starting in the Q3/4 of 2016 will definately help bring that payout ratio back down.

I think the market is finally coming to the realization that interest rates are NOT going up, and that a 10% yield is prety damn good. I would expect the REIT sector to power back to its highs of last year. DRG should be at $9.5 - $10 just with the shoring up of its leases. I would expect these yields to come down as investors decide a 9% yield looks good, then at 8%, hey, that probably doesnt look that bad either. I know that if I wanted to buy a commercial property in toronto, I would be getting 4% cap rate cash on cash. More if I used leverage, but I cant get the same mortgages these companies can, which is why REITs are far superior investment to owning real estate.

Anyways, as rates stay lower for longer, and people start believing that, these yields should be 5-7%, not 8-10