Globe & Mail Monday’s Insider Report: Chairman invests over $3-million in this oversold REIT with a 68% forecast return
Minto Apartment Real Estate Investment Trust
On Sept. 26 and 27, chair of the board Roger Greenberg invested over $3.5-million in units of this REIT. He acquired a total of 278,033 units at an average price per unit of roughly $12.92, increasing this particular account’s position to 460,519 units.
On Sept. 27, senior vice-president, operations Paul Baron bought 6,000 units at an average cost per unit of roughly $13.17, lifting this specific account’s holdings to 19,600 units. The cost of this purchase totaled roughly $79,000, excluding commission charges.
The REIT pays its unitholders a monthly distribution of 3.958 cents per unit or 47.5 cents per unit yearly, equating to a current annualized yield of 3.7 per cent.
Year-to-date, the unit price has declined 41 per cent with the REIT now in oversold territory. The relative strength index (RSI) is currently at 30. Generally, an RSI reading at or below 30 reflects an oversold condition.
Analysts anticipate the unit price will rebound. The REIT has 11 buy recommendations and one ‘sector perform’ recommendation. According to Bloomberg, the average one-year target price is $21.70, implying a potential price return of 68 per cent over the next 12 months.