RE:On a tear, + edmonton looking upNorthforce13 wrote: SP has been rising aggressively
According to the latest rentals report it looks like Edmonton rental rates have started to move to move up month over month, while calgary continues to do so, having already started last month.
All the ducks are in a row for further gains.
The potential is quite huge. Book value is currently 58. As we see Alberta get back on its feet, with the oil and gas sector going full steam, and a pro business government healing the wounds caused by the NDP, we could see continued strengthening across the board of the BEI portfolio, which would lead to increased FFO, and write ups to book value instead of small markdowns.
Then if we apply "normal" current market pricing of some peer reits, which seem to be at 1.1 to 1.2x book value, we could conceivably be looking at a top end scenario of:
Book value goes from 58 to 65 on writeups, valuation goes from a discount to book to in line with peers, 1.1 to 1.2. Using 1.1 we end up at 71.50...
Sitting on my mountain of shares here, enjoying the ride.
GLTA
Well said. Thanks for posting your opinion. A few years ago, everybody hated Boardwalk. Glad to see some contrarian interest in the name.
I've been thinking $50's is possible in 2022 but if institutional money is looking for Alberta exopsure, BEI.un will be a top pick and maybe $60 possible. They will expand p/ffo multiple to own what's outperforming.
Not meaning to pump but another name that may interest you is Gamehost (GH). Similar story as BEI. Will support a 5%+ dividend when their doors are open a few quarters. Keep us posted on your quality western Canadian stock picks!!
www.gamehost.ca