TSX:NRR.UN - Post by User
Comment by
DanielDardenon May 16, 2024 4:50pm
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Post# 36044299
RE:RE:Mispriced?
RE:RE:Mispriced?DanielDarden wrote: DanielDarden wrote: After the consolidation, at a constant cap rate and NOI, the NAV/u is ~$26. At $12 it is trading at a 60% discount which seems extreme for an apartment REIT with a 65% payout ratio. NVU, with essentially the same team, never came close and was well regarded by analysts. Once they pick up coverage here the real value should surface.
Congrats to those who had the conviction to buy at or near the bottom. I felt like I was doing all the buying at times but knew that the value would be recognized eventually so didn’t mind. Being early is seldom fun but it does offer freshness.
Confident that the move up will continue in ‘24 with increased coverage and moves west.
Happy and Healthy New Year to All!
Now around $15 IMO, it remains Mispriced given the interest rate environment we are about to enter with cuts. Logically the 12% increase in same door NOI improves fair market value accordingly. Cap rates should decline as rates move down also increasing fair market value. The result should be that NAV/u moves from $23 currently to in excess of $30. A 50% discount should appeal to most. Self directed investors should be the beneficiaries until more analysts hop aboard at higher prices.
Please do not regard this as advice, it is merely an opinion. I intend to continue buying on weakness.