National Bank Lowers TargetsThey lowered their targets for every REIT within their coverage but I only posted for the ones that I own. GLTA
Ahead of second-quarter earnings season for Canada’s real estate sector, National Bank Financial’s Matt Kornack and Tal Woolley expect the trend of similar returns regardless of asset classes to continue.
“Year-to-date price performance across the asset classes has evened out expected total returns, despite target cuts across our universe,” he said. “Mean returns for multi-family (up 18 per cent), retail (up 18 per cent), industrial (up 18 per cent) and seniors housing/healthcare coverage (up 14 per cent) are similar. We see opportunities in each of these segments and would recommend a balanced portfolio of our highest total return names across asset classes. At this point in time, apart from office (total return expectation of 9 per cent), we are seeing high occupancy rates and solid rent growth outlooks, driven by limited development and immigration-fuelled demand (now being seen in commercial, not just residential uses).”
In a report released Tuesday, the analysts lowered made broad target price reductions by an average of 8 per cent to equities in their coverage universe “as rates remain elevated.” Their funds from operations per unit projections slid by an average of 1 per cent due largely to reduced transaction activity and higher financing costs.”
Boardwalk REIT Target Lowered by National Bankshares C$78.50 C$77.00
Dream Industrial Real Estate Invest Trst Target Lowered by National Bankshares
C$18.50 C$17.50
First Capital Realty Target Lowered by National Bankshares C$18.50 C$17.50
Granite Real Estate Investment Trust Target Lowered by National Bankshares
C$98.00 C$90.00
Interrent Real Estate Investment Trust Target Lowered by National Bankshares
C$16.00 C$14.75
Nexus Industrial REIT Target Lowered by National Bankshares C$11.25 C$9.25