Morguard North American Residential Real Estate Inv 6 00 Convertible Unsecured Subordinated Debentures T.MRG.UN

RBC raises target to $25

[HermannHaller]

Morguard North American Residential REIT

Strong Q2; CDN segment rebounding convincingly

Our view: Morguard North American Residential REIT (“MRG”) reported a strong quarter with FFO/unit of $0.34, +21% y/y. This was lapping a weak Q2/21. Regardless, with SP NOI growth of +14%, it was noteworthy that its Canadian portfolio SP NOI has inflected comfortably to the positive (+5.4%), despite opex pressures. Stock remains mispriced at 6.8% implied cap rate. Raising target on higher NOI and NAV. Maintain OP.

[nini2022]

Thanks for sharing! I think the only way for the units to get even close to NAV with the current structure is to: 1) raise the distribution signigicantly over the next 1-3 years so investors take notice that management is serious about the public unitholder. 2) Do a secondary offering with a institutional shareholder well over the public trading price. This is pretty unlikely but they do have JVs