Globe and Mail - articleThe Globe and Mail reports in its Tuesday, Nov. 8, edition that Canaccord analyst Mark Rothschild has elevated his recommendation for Dream Office REIT tp "buy" from "hold." The Globe's David Leeder writes that Mr. Rothschild cut his share target to $18 from $19. Analysts on average target the shares at $20.59. Mr. Rothschild says in a note: "Continued soft operating performance is putting pressure on Dream Office REIT's cash flow, and it could take some time for fundamentals to improve. Clearly, property-level fundamentals are recovering at a much slower rate than we had anticipated, and it is likely that an economic slowdown over the next year will lead to greater vacancy. Therefore, management is taking a patient and long-term approach to managing through this period, with a focus on investing capital in the assets to improve occupancy. Over the long term, the portfolio is, in our view, significantly more valuable than the current unit price. Many of the REIT's assets are located near hospitals, providing a built-in source of potential tenants, whereas others are valuable development or redevelopment sites. Further, the REIT's ownership stake in Dream Industrial should produce stable and growing cash flow."
NAV (net asset value) = $33 per unit