Related posts
Most Anticipated Earnings: BLDP-T, BOS-T and more Canadian Companies Reporting Earnings this Week (May 06-10)This summary was created by AI, based on 2 opinions in the last 12 months.
Dream Residential REIT (DRR.UN-T) is a small-cap REIT with garden style town homes and apartments in Texas and Cincinnati. While it appeals to middle class renters and has potential for rent increases, it is trading below its NAV by over 30%, making it a potentially mis-priced investment. The company has a safe dividend of 6% with a payout ratio of 65-70%. However, its highly leveraged balance sheet and small size add significant risks, particularly in a higher interest rate environment. Overall, experts suggest that buyers can wait and watch this stock to see how it performs as a public entity.
DRR.UN is a small-cap REITs focusing on residential properties, and is now trading at 8.2x times' Forward P/E. The company owns a portfolio of properties with a high occupancy level of 98%. Trading at a meaningful discount to NAV of $17. In the last few years, the company managed to grow distributions per share and NAV per share at attractive rates. Having said that, the balance sheet is highly leveraged, net debt to adjusted EBITDA is around 9.0x, and available liquidity is around $243M. However, the total debt service requirement amount for the remainder of 2023 is $131M, and 2024 is around $350M. The company's small size and leverage add significant risks if the economy/fundamentals were to falter. Payout ratio (12 months). As a new small public company, in a higher interest rate environment, we think investors can wait and watch this one and see how it performs as a public entity. We think buyers have time here.
Unlock Premium - Try 5i Free
Newer REIT. Apartment buildings in the US. Rents are lower, assets are older. Small. Trades at a nice discount. Pretty attractive cap rate of 7.7%. Other REITs are larger, more liquid, with more institutional-quality real estate. Decent hold, but better opportunities elsewhere.
Dream Residential REIT is a OTC stock, trading under the symbol DRR.UN-T on the (). It is usually referred to as or DRR.UN-T
In the last year, 1 stock analyst published opinions about DRR.UN-T. 1 analyst recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Dream Residential REIT.
Dream Residential REIT was recommended as a Top Pick by on . Read the latest stock experts ratings for Dream Residential REIT.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
1 stock analyst on Stockchase covered Dream Residential REIT In the last year. It is a trending stock that is worth watching.
On , Dream Residential REIT (DRR.UN-T) stock closed at a price of $.
It has garden style town homes and apartments in Texas and Cincinnati. It appeals to middle class renters and could get rent increases. It is trading below its NAV by over 30% so is mis-priced. Its payout ratio is 65% to70% so the dividend of 6% is safe. Buy 7 Hold 1 Sell 0
(Analysts’ price target is $12.56)