TSX:AX.PR.E - Post by User
Post by
fishowlon Jun 15, 2022 3:10pm
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Top Pick BNN Bloomberg
Top Pick BNN Bloomberghttps://www.bnnbloomberg.ca/chris-blumas-top-picks-june-15-2022-1.1779325 Chris Blumas' Top Picks
Chris Blumas, portfolio manager at Raymond James Investment Counsel Ltd., discusses his top picks: Artis REIT, CGI Inc., and Walt Disney.
Artis REIT (AX.UN TSX)
Most recent purchase at $12.16 on 2022-05-11
Artis is a diversified REIT with a mix of office, industrial and retail properties. The trust currently generates around half of its operating income in Canada and half in the U.S. Diversified REITs are out of favour and trade at dramatically lower valuations than other real estate subsectors. During the first quarter of 2021, Artis reconfigured its board and appointed a new CEO with the aim of improving capital allocation and maximizing value for unitholders. The end goal of the new management team is to create an asset management platform with the optionality to invest in public and private real estate markets on a value basis and grow NAV at an above-average rate. The units currently trade at 9x current year funds from operations and have a distribution yield of almost 5 per cent. At Q1 2022, the IFRS NAV per unit was around $19 and the current discount to NAV of 35 per cent is among the largest discounts in the Canadian real estate universe.