TSX:NXR.UN - Post by User
Post by
DanielDarden123on Jan 09, 2022 3:05pm
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Post# 34298022
Rising NAV/u
Rising NAV/u Inclusive of the aforementioned potential acquisitions, the REIT will have announced or completed approximately $1.1 billion of industrial acquisitions since the beginning of 2021 at a weighted average going-in capitalization rate of approximately 5.4%. These potential acquisitions, if completed, will increase its industrial portfolio weighting by NOI from 61% as at January 1, 2021 to 83%.
Taken from the Nov./21 Prospectus.
Industrial properties are valued at a cap rate of ~4% now. The 20% improvement should translate into a comparable jump in NAV/u assuming there is no improvement in NOI which is very unlikely considering inflation and rent increases. Putting both improvements together this has the potential to jump up 30% when they are recognized.