Stock price when the opinion was issued
BEI.UN is still considered an 'oil sensitive' REIT because of its Alberta focus. The energy sector has been quite weak, and this is likely a big reason for its drop from $91/unit. But it is still up 8% YTD and 22% over one year. The last quarter was fine, but its relatively low yield of 1.87% and its higher valuation can limit investor interest at times. We would be OK buying for income and growth.
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Owns shares in business. Portfolio includes properties in Alberta which is not rent controlled. Recent share price sell-off not a concern. Overall is a high quality business. Concern around tariffs not a worry. Would recommend buying. Alberta is a great place to do business, and is expected to keep growing (good for business).
Immigration is not actually being lowered, it's more that we're returning to nice, stable growth. A lot of these people are going to move to Alberta, where BEI.UN has the majority of its properties. A lot of Ontario is moving to Alberta as well. The pro-energy trend will also benefit Alberta.
In Ontario it can take 6-8 years to get permits to build an apartment building, 2 years to build, and then you're faced with rent control. Alberta is much more friendly in this regard; so rents are cheaper, and there are more rental units.
Alberta benefits from population growth, international migration, and inter-provincial migration. Not rent regulated. Quality housing. Large discount of about 20% to NAV. Outlook continues to be bright. Yield is 1.78%.
(Analysts’ price target is $74.82)Good landlords. A very important characteristic. Could increase rents by 20%, but seldom goes above 9%.