RBC RBC Capital Markets analyst Pammi Bir previewed REIT earnings and presented top picks,
“Our view: Our top picks are unchanged, as Q2 reporting shifts to higher gear next week. After a strong Q1, our forecasts reflect earnings growth moderating to more pedestrian levels (+1%) in Q2. As noted in our recent Q3/24 REIT Quarterly, stronger sector returns through 2H/24 likely hinge on hitting growth expectations and some macro support. While the latter seems to have come through in July, achieving the former could help fuel another leg up in the sector, particularly given inbounds on the durability of forecasts. All said, post a strong sector rally through July to date, we believe there’s still good money on the table, particularly for our preferred picks … Seniors housing earnings growth should remain well ahead of the group … Industrial continues to simmer down … Some green shoots in office, but still a long way to recovery.”
Mr. Bir has outperform ratings on Chartwell Retirement Residences, Allied Properties REIT, Dream Industrial REIT, Granite REIT, First Capital REIT, RioCan REIT, Smartcentres REIT and Storagevault Canada Inc.