G&M's Market Movers Looks like it took news like this for this disconnect between fundamentals and share price to finally start to be addressed. Interest from a major international player certainly didn't hurt. GLTA
On the rise
Summit Industrial Income REIT soared with the announcement it will be acquired for $4.5-billion by GIC, Singapore’s giant sovereign wealth fund.
GIC’s acquisition, announced Monday, is structured as a joint venture with Dream Industrial REIT, split 90 per cent and 10 per cent, respectively. Together, they are paying $23.50 in cash per Summit unit, a 31 per cent premium to Friday’s closing price.
Canada’s industrial warehouse owners are enjoying some of the strongest business fundamentals across all classes of real estate. The market for domestic warehouse is so strong that the national vacancy rate has fallen to a record low of 1.6 per cent, according to commercial real estate services and investment firm CBRE Group Inc. Supply of properties is so tight that some landlords have been able to raise rents more than 100 per cent in tenant turnovers and lease renewals.
However, publicly-traded industrial REITs have struggled of late because the e-commerce boom has taken a hit, with major online platforms such as Amazon and Shopify warning that the pandemic gains were an anomaly and are starting to reverse.