Dream Industrial Real Estate Investment Trust T.DIR.UN

More Reaction to JV

[retiredcf]

What do you think about the JV they entered into? Given the big drop in share price, is there any cause for concern?

We are not so sure Friday's decline was in direct relationship to the announcement, and may have been more market related. The $1.5B JV is a good recognition of the company's abilities, and will allow it to carry out industrial development on a large scale with a partner (unnamed) with deep pockets. Scotiabank notes it could add $1.00 per unit to NAV, over time. DIR plans to spend $500M in the next three years, and will own 25% of the JV. We would see no 'additional' cause for concern here. Of course, the usual risks (rates, inflation, market) still apply. (5iResearch)

[pjn0987654321]

Other industrials declined too.  My impression is it's because Amazon had a poor quarter.  Apparently, much warehouse/industrial space is used by them and they may not need so much going forward.  As the virus nonsense recedes, people go back to the malls more and use Amazon less.  The JV seems reasonable but then, considering how DIR.UN issued and issued and issued and

[TG1960]

 Interest Rates!!

[Capharnaum]

It's a bit crazy considering most REITs have the vast majority of their debt fixed long term.

[jcjohn36]

Would have thought the increase in interest rates would have been baked into sp by now ?

[nutellaface]

I think it has to do more with rising interest rates. 

[pjn0987654321]

Possibly.  The usual news sources have said falling commodity prices because of China lockdowns.   Who knows.