TSX:KMP.UN - Post by User
Post by
DanielDarden123on May 26, 2021 2:26pm
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Post# 33268939
CIBC
CIBC
Investment Thesis
KMP offers Canadian investors an above-average growth profile (through exposure to multi-family assets in markets with solid fundamentals) with relatively less valuation risk (as compared to Ontario-centric REIT peers).
Price Target (Base Case): C$22.50
Our base case price target reflects a 5% premium to NAV.
Upside Scenario: C$27.00
We assume that NOI is 2.5% above our base case expectations, cap rates are 25 bps lower, and units trade at a 10% premium to NAV.
My Take: This should not be trading at a discount to NAV. Especially this discount given the potential for NOI growth and distribution increase.