TSX:GRT.UN - Post Discussion
Post by
retiredcf on Sep 30, 2022 8:18am
Ink Research
Always good to see. GLTA
Morning Report: Granite REIT insiders buy as units sink under Fed tightening
September 30, 2022
Today, we visit Granite REIT (GRT) where insider buying has picked up as the unit price has sold off. Over the past decade, the REIT's strategy has been to favour e-commerce and other distribution (E/D) properties. According to the REIT's August 2022 investor presentation, E/D represents about 70% of the value of its overall 57.5 million square foot property portfolio as of June 30th. The REIT has 127 income-producing properties with just over half (52%) located in the United States, followed by Canada (22%), France (10%), Austria (9%), and Germany (7%) based on square footage. Major tenants include Magna (Mostly Sunny; MG) and Amazon (Mixed; AMZN).
Granite reported Q2 funds from operations of $1.10 per basic stapled unit, up from $0.99 a year earlier. However, the net loss attributable to stapled unitholders was $122.3 million compared to a net income of $316.9 million in the comparable period. The loss was driven by a $559.3 million increase in fair value losses on investment properties, partially offset by a $12.5 million increase in net operating income and a $104.0 million decrease in income tax expense. INK estimates the net loss per basic stapled unit to be $1.86. Granite had 97.8% occupancy in Q2 by gross leasable area and reported debt stood at just under $2.4 billion. According to Refinitiv, EBITDA was $319.2 million on a trailing 12-months basis.
Granite faces headwinds like most industries as the Fed seeks to drive up unemployment to fight inflation. However, for those who believe that logistics-focused REITs will offer opportunity over the medium term, Granite REIT, with its 4.6% prospective distribution yield, is probably worth watching. The REIT has also been buying back units during the 2022 selloff.
Be the first to comment on this post