Dream Office Real Estate Investment Trust T.D.UN

TD down target price

[incomedreamer11]

We believe a higher for longer interest rate scenario will focus more attention on balance sheets, and have accordingly adjusted some target prices downward

Dream Office REIT BUY from $15.50   to $13.50 -13%

 Our $13.50 target price is based on a 16.25x-16.75x multiple on our 2024E AFFO and represents a 39% discount to our NAV/unit estimate. Key risks to target price include: general economic conditions; supply and demand for office space; interest-rate fluctuations; cost pressure; and tenant credit risk. With ~30% ownership by Dream Unlimited (or 33% including Michael Cooper and other insiders), a material change in its relationship with D.un could result in a revaluation of the units. 

[Frankie10]

The value of the REIT is driven by assets. Therefore, to assess the value of the REIT, as TD has attempted, one should use the adjusted book value method. By taking the time to determine their own NAV (net asset value), they have essentially performed the valuation. One could make an argument that latent tax liability is not considered in the NAV, among other adjustments including minority