CIBC analyst Sumayya Syed surveyed the third quarter for the REIT sector,
“Q3 saw REITs continuing to deliver solid results while maintaining their outlooks. Retail leasing spreads in the mid single digits to low teens continued unabated, and reflecting such, the group has been the best-performing sub-sector YTD. While valuation has checked back, the safety names’ – i.e. CHP, CRT and APR – units notably lead the sector on valuation and are within 10% of NAV. In retail we like PMZ for NOI [net operating income] growth runway and potential for valuation to catch up to peers. Industrial results demonstrated the stickiness of rents, with the odd step back in occupancy. However, valuation continues to be dictated by supply concerns. DIR looks attractive on a growth and valuation basis. 2025 and 2026 FFO [funds from operations] growth are 10% and 5% respectively, while units are trading at a ~20% discount to NAV … industrial REITs continued delivering sector-leading SP [same property] growth in Q3, followed by retail REITs at ~1%–4%+. PMZ’s 4.6% SP growth was above the retail subset”
Ms. Syed has outperform ratings on PRO REIT, Automotive Properties REIT, H&R REIT, Nexus Industrial REIT, Granite REIT, Crombie REIT, Dream Industrial REIT and Primaris REIT