GREY:DUNDF - Post by User
Post by
biggerironon Jul 29, 2017 2:35pm
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Post# 26525401
Currency Play??
Currency Play??
TD Investment Conclusion DRG's recent initiatives (trading on the FSE; euro-pay option for distributions; enhanced EPRA reporting metrics; and Moody's credit rating) have improved the REIT's profile. Together with last week's DP lease renewal, these have narrowed DRG's P/FFO valuation discount versus the German peers to 23% vs. 37% last November. We believe that DRG's European unitholder base will continue to grow, causing the discount to further narrow. As such, we are raising our target price to $12.00 from $11.00, with $0.50 coming from our NAV increase and $0.50 from a 0.5x increase in multiple. Is this all about a foreign currency play?? Comments please.