Scotiabank Top Picks One area of REITs, industrials, continues to enjoy tailwinds as Scotiabank analyst Himanshu Gupta reports,
“In our 2nd Annual Industrial panel we mentioned ‘Wind in the Sails.’ Today, in our 3rd annual edition, we say the positive narrative has not changed, and it remains a landlord’s market. Secular tailwinds (supply chain optimization, near-shoring, e-commerce and inventory management) are still there but partially offset by near-term headwinds (macro slowdown, higher interest rates and new supply in some markets) … Among the larger names, BEI, GRT and DIR are the top #3 names with highest earnings growth across coverage. Not surprisingly, BEI, GRT and DIR are also the top #3 unit price performers year-to-date. Time and again, we emphasize that AFFOPU [adjusted funds from operations per unit] growth is key to outperformance. Even on 2022-24E basis, both GRT and DIR screen very well and in top quartile within our coverage”.