European Residential REIT T.ERE.UN

Analysts update

[incomedreamer11]

In response to the completion of various strategic asset sales, including rental suite privatizations, for €129-mln in total gross proceeds, Raymond James analyst Brad Sturges raised his rating for European Residential REIT (ERE.UN-T) to “outperform” from “market perform” previously, emphasizing its strategic Dutch multi-family residential building divestiture activity is beginning to accelerate.

“We believe there is increasing potential that ERES could further narrow its NAV/unit discount valuation by: 1) executing more asset sales that allow ERES to further strengthen its balance sheet; and/or 2) revisit another en bloc Dutch MFR portfolio sales process at some point in the next 12-18 months, particularly if market conditions for private market Dutch MFR transactions further improve and if European interest rates fall, reducing the average cost of capital for prospective buyers,” he said.

Mr. Sturges’s target rose to $3.25 per unit from $2.75. The average is $3.06.

[EstevanOutsider]

Thanks for posting. Shows how trailing the analysts are and why to position only when they are bearish. This deal was not to TPG Angelo Gordon but Rubens Capital, so it seems Mark Kenney and CAPREIT team are going to have another deal coming for us. He reemphasized the importance of selling at NAV or higher, that's above $4 ($4.23) so another ~31% discount to gap.   Also as rates go