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Crombie Real Estate Investment Trust T.CRR.UN

Alternate Symbol(s):  CROMF

Crombie Real Estate Investment Trust is a Canada-based open-ended real estate investment trust. The principal business of the Company is investing in income-producing retail, retail-related industrial, mixed-use, and office properties in Canada. Its portfolio primarily includes grocery-anchored retail, retail-related industrial, and mixed-used residential properties in Canada's urban and suburban markets. Its portfolio includes 304 properties comprising approximately 19.3 million square feet. The Company’s properties include CIBC Building; Aberdeen Business Centre; Acadia Avenue; Amherst Centre; Amherst Plaza; Antigonish Sobeys; Blink Bonnie Plaza; Brunswick Place; Causeway Shopping Centre Sobeys; Cogswell Tower; County Fair Mall; Dartmouth Crossing Cineplex Cinemas; Downsview Mall and Downsview Plaza; Duke Tower; Elmsdale Shopping Centre; Fall River Plaza; Forest Hills; New Waterford, Plummer Ave; New Waterford, Emerald Street; Scotia Square; Sheet Harbour, and others.


TSX:CRR.UN - Post by User

Post by midardon Nov 16, 2020 6:52pm
846 Views
Post# 31911499

NBC : Solid Q3, raising target to $16.50

NBC : Solid Q3, raising target to $16.50Post-pandemic prospects look attractive Reiterating Outperform rating, raising target to $16.50 (was $15.50) For Q3, CRR reported FFO/u of $0.27, down -4%, and ahead of consensus/ NBF of $0.25/$0.25. For a breakdown of Q3 results, see inside. Collections are improving, at 95% for Q3, and 96% in October (vs. 90% in Q2). CRR had only $1.7 mln in rent provisions & abatements in Q3 (vs. our $4.0 mln forecast, $8.7 mln in Q2), with Avalon Mall rebounding well. We believe that we are beginning to see the upside of the strategy CRR laid out in its 2019 investor day, which focused on working more closely with EMP and delivering mixed-use developments (see our note here). CRR's exposure to groceryanchored retail, its strong relationship with EMP, and its high exposure to markets with low COVID prevalence (Atlantic Canada is 37% of rent, Western Canada is 39%), make CRR a solid, stable choice in difficult times for retail. We are introducing our 2022 estimates, in which we forecast for CRR to return to posting SPNOI growth of ~2%, supplemented by development completions in 2021/22. Our $16.50 target is set at a +11% premium (was +3%) to our NAV/u estimate one year out, translating to 16.0x F2022E AFFO/ u (was 15.9x), at the higher end of the peer group, based on its balance sheet and growth prospects and similar business risk.
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