TSX:MRT.DB.A - Post by User
Post by
incomedreamer11on Oct 01, 2021 9:24am
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Post# 33951485
TD lowered target price
TD lowered target priceMorguard REIT (MRT.un-T) $6.50 from $&.00 HOLD .
Our $6.50 target price is based on a 9.0x-9.5x multiple to our 2022E AFFO. The multiple is at the lower end of the range that we use to derive the target prices of its peers in our coverage universe, given its Calgary office and enclosed mall exposure. We believe that Morguard should trade at a discount to its peers given its smaller public float, trading liquidity, and partially external property management structure
Morguard is subject to risks common to commercial real estate investing.
Key risks to its target price include a prolonged impact of COVID-19, local and general economic conditions; competition for tenants; tenant credit risk; new supply; operating cost pressures; changes in interest rates; and availability of long-term mortgage funds.
In addition to the risks common to real estate, key risks to our target price include: 1) risks related to its development assets; 2) ongoing re-leasing risk at its former Target and Sears spaces; and 3) approximately 69% of the REIT's units are owned by Morguard Corp., which can have significant influence.