Post by
SNAKEYBOY on Jul 12, 2023 11:36pm
HR weakness can't be explained
Trading at 10x AFFO like the sector, but HR has reduced their office weighting to 20%, of which a good portion is being rezoned, and/or has 7-8 WALT. Industrial REITS like DIR and Retail REITS like Riocan are trading at 20% discount. Landtower Resendential, not sure about comparables, but looks like it should also not be a steep discount since resedential is much favorable over commercial right now.
So HR is being given a 50% off NAV price because of their office, which as I explained above seems very desirable given the WALT.
We'll see if they put up good Q2 numbers, and more importantly, are close to closing their 300m in retail/office dispositions. That will reduce leverage even though their balance sheet is already good, and ensure they can MAX out the NCIB.