from the TD report today1.
TCN is being added to the FTSE EPRA NAREIT Global Developed Index at the close on June 18. This should result in indexer demand of ~3.7 million shares. 2. Offering. Blackstone participated in the offering (~2.0 million shares) and, as such, its 12.7% interest in Tricon is unchanged.
3.
The lower leverage should also allow Tricon to compare more favourably to U.S. comps in advance of a U.S. listing, which we believe could take place as early as H1/22. TD Investment Conclusion
While the equity raise was unexpected, we believe it positions Tricon well to fund its current and future growth initiatives. In our view, Tricon is one of the best-positioned names in our residential coverage to benefit from the change in behavior brought about by the pandemic, particularly its growing SFR business. Although Tricon's valuation has improved over recent months, we continue to see upside, particularly as it still trades well below its U.S. SFR peers.
We are reiterating our BUY rating and increasing our target price to C$15.50.