TSX:NXR.UN - Post by User
Post by
DanielDardenon Mar 15, 2024 3:21pm
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Post# 35935520
CIBC::
CIBC:: Valuation: NXR units are down ~5% YTD vs. the broader XRE index’s ~1% decline. The REIT currently trades at a forward P/FFO of ~10x, in line with the historical average. NXR units do, however, trade at a ~27% discount to consensus NAV, compared to the average historical discount of ~14%.
My Take : A’s NAV/u is based on the cap rate and NOI it is more reflective of market value as perceived by private equity so is more indicative of being under valued. When this becomes a pure play it’s value should surface. Meanwhile the high distribution alone should out perform any GIC.