TSXV:NET.UN - Post Discussion
Post by
tinkvid on Jan 27, 2022 9:34am
Globe says new coverage rates Canadian Net REIT "buy"
Well managed. Steady growth.
2022-01-27 08:39 ET - In the News
The Globe and Mail reports in its Thursday, Jan. 27, edition that Desjardins Securities analyst Kyle Stanley commenced coverage on Canadian Net Real Estate Investment Trust with a "buy" call on Wednesday. The Globe's David Leeder writes that Mr. Kyle set a unit target of $9.25. Analysts on average target the units at $9.10. Mr. Kyle says in a note: "Canadian Net REIT has delivered sector-leading 15-per-cent compound annual FFO [funds from operations] growth since 2017; moreover, it has raised its annual distribution at a 13.6-per-cent CAGR [compound annual growth rate] over the same time period. In our view, Canadian Net REIT is well-positioned to continue consolidating net-lease assets across Quebec, Ontario and Nova Scotia, which should translate into a healthy three-year FFO/unit CAGR of 12 per cent. ... Despite rapidly accelerating its external growth in recent years, its leverage profile has remained relatively stable. ... We believe Canadian Net REIT offers investors a robust earnings and distribution growth profile at a compelling relative valuation -- particularly in the context of the stability and defensive nature of its income profile, capital-efficient portfolio and favourable yield/payout dynamic."
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