TSX:AX.PR.E - Post by User
Comment by
EstevanOutsideron Apr 04, 2024 11:15pm
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Post# 35971888
RE:Residential reits
RE:Residential reits i am holding eres. the biggest risk in my view is the political threat of rent caps. but that's mostly already baked into the unit price with a change of government since which just ok'ed expanding them to $1000 euros to the so-called point system. most of eres properties will not fall into this rent control after this years' renewals which pushes 75% or more of their portfolio out of the controlled range.
the other issue holding down eres in my opinion is the dbv ratio closing in at 60% because of fair market value write downs due to cap rate expansion, which are likely over. mark kenney (capreit ceo) didn't sound concerned on the call and said lenders were understanding of current situation. netherlands has one of the tightest rental markets in the world.
they are selling properties at a slow pace, apparently the worst ones in their portfolio, "well well well above NAV" according to the Q4 call so opportunity to deleverage the balance sheet there.
sp noi rent growth at 7% is very likely yoy. prices reset every june or july 1.
eres also has suitors but mark kenney / capreit wasn't willing to sell at $3.. that's the speculation anyways.