Pure Multi-Family REIT LP (RUF.UN-X) brings a “low risk” opportunity for investors to participate in the U.S. rental market, said Laurentian Bank Securities analyst Yashwant Sankpal, who resumed coverage with a “buy” rating.
“Pure Multi-Family REIT LP offers an opportunity to participate in the apartment market of one of the fastest growing regions in the U.S.,” sad Mr. Sankpal. “Because of its relatively small market cap and its growth-by-consolidation strategy (i.e. frequent equity issues), the market is not ascribing full value to this business. As a result, investors who can get into this investment at an early stage are likely to benefit as the company grows RUF’s unit price declined more than 15 per cent since marking the $7.13 high in June 2017,” he said. “At the current $6.25 price, RUF offers a 50-cent or 8-per-cent upside and a 6.0-per-cent dividend yield.”
Believing a recent pullback in price presents an attractive investment opportunity, Mr. Sankpal set a target for units of the Vancouver-based REIT of US$6.75. The average is US$6.86.
“RUF’s unit price declined more than 15 per cent since marking the $7.13 high in June 2017,” he said. “At the current $6.25 price, RUF offers a 50-cent or 8-per-cent upside and a 6.0-per-cent dividend yield.”