Following Thursday’s release of in-line quarterly results, several analysts raised their target prices for units of Choice Properties Real Estate Investment Trust (CHP.UN-T).
Those making changes include:
* BMO Nesbitt Burns’ Jenny Ma to $15.25 from $14.50 with a “market perform” rating. The average is $15.25.
“Thematically, CHP.UN’s results are consistent with our view that Q2/21 should be a buoyant quarter for the REITs as they lap a trough Q2/20, which took the biggest hit from the pandemic,” she said. “We expect to see strong year-over-year growth in cash flow/unit and SPNOI for the Canadian REIT sector this quarter.”
* CIBC World Markets’ Sumayya Syed to $15.25 from $14.25 with a “neutral” rating.
“Despite a relatively small industrial footprint, NAV/unit grew 3.6 per cent from strong fundamentals and heightened buyer demand,” she said. “Following the fair value gain and debt repayment, leverage at 41 per cent is now the lowest amongst peers. In the near- to mid-term we expect modest but steady growth on the back of built-in rent growth in retail and industrial, and an improvement in office from resumption of parking revenue. The long-term growth profile continues to become more robust with the addition of two major mixed-use developments to the pipeline, with a targeted density ratio of 5 times.”
* Canaccord Genuity’s Mark Rothschild to $16 from $15.50 with a “buy” rating.
* RBC Dominion Securities’ Pammi Bir to $15.50 from $14.50 with a “sector perform” rating.
CHOICE PROPERTIES REIT
14.58+1.92 (15.15%)
YEAR TO DATE
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