Andrew MoffsHere's an additional comment. At this point, BNN's videos aren't working so can't post the link. GLTA
European Residential REIT (ERE-U TSX)
$1.1B market cap, 3.6 per cent dividend yield, $4.42 close
European Residential REIT currently owns and operates 5,949 residential suites in 138 properties.
European Residential REIT is the only REIT globally focused on multi-family rental apartments in the Netherlands, the most densely populated country in Europe.
It offers unitholders the unique opportunity of first mover advantage in consolidating the apartment sector in the Netherlands where fundamentals are robust, and no other institutional operator of size currently exists.
Despite COVID-19, fundamentals in the REIT’s core markets remain largely favourable and unchanged; ERES is collecting rents in line with pre-pandemic levels, has increased occupancy by 130 bps year-over-year to 99.0 per cent, and successfully increased its same-property NOI by 8.0 per cent (as of Sept 30th, 2020). This compares to its North American peers, which have, on average, experienced increased vacancies, below average rental rate collections, and negative NOI growth.
External growth remains compelling reflecting extremely attractive long-term financing rates of less than 1.0 per cent compared to capitalization rates of between 3.75 per cent to 4.00 per cent achievable on acquisitions. Within its third quarter, 2020 results, ERES announced €20.1 million of acquisitions, comprising of 120 suites, at a blended cap rate of 3.9. per cent to reporting its earnings, the REIT announced a further €60.3 million of acquisitions, bringing year-to-date acquisitions to €80.4 million. Furthermore, the REIT has liquidity of approximately €200 million, allowing ERES to continue to grow despite trading at a 12 per cent discount to its IFRS NAV.