Andrew Moffs Dream Industrial REIT DIR.UN-T PAST TOP PICK Mar 31, 2025

Stock very interest rate sensitive (higher debt loads are expensive). But, could be a good time to buy given share price. Would recommend a small position. 

Cheapest play on industrial anywhere. 2/3 portfolio in Canada, 1/3 in Europe. Investment in the US. Likes it because spaces are really close to the population. Big gap of 46% between in-place rents and market rents. Robust internal  growth of 9-10% annually, with 20% discount to NAV. Yield is 5.4%.

DIR.UN has a portfolio of 327 industrial assets, it has a 96% occupancy rate, a 5.4% yield, 10% FFO year-over-year growth rate, forward sales and earnings growth estimates are strong, and its FFO/debt ratio has been climbing over the past few years. We continue to like industrial REITs due to long-term tailwinds such as increased demand for data centers and the AI theme. We would be comfortable buying DIR.UN here for a long-term hold. We like its current price in the low $13s. 
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Short-term moves are quite hard to predict, but on the monthly, momentum is currently negative. This means over the next month or more we might expect the probabilities of lower prices to be a bit higher than higher prices. On a weekly basis, momentum is bouncing back, and we might see a slight bounce over the next week or two, but there is resistance at $13. We expect there to be fairly strong support at $12.3, and if that is broken, then $11.5 may be up next. If it can break $13, then $14 is the next area of resistance. Overall, it's been in a downtrend for over a year, but we continue to like its fundamentals, and it pays a strong distribution yield.
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He focuses on supply and demand, and then goes bottom-up looking for discounts. Fundamentals in industrials in Canada and Europe are far superior today to US multi-family, especially in the Sunbelt. 

It's a new construction supply problem, and demand won't be able to keep up. DRR.UN owns an older portfolio in key Sunbelt markets. Wide discount to NAV. Low liquidity, so no premium.

DIR.UN has stellar internal growth prospects. Spread between in-place rents and market rents gives them an advantage. He'd choose this one. New construction will fall off 15% into next year, and empty space will be absorbed.

Great setup. Will capture the spread on market rents. Book value is near $17, so it's at near a 25% discount to NAV. Single-digit growth this year and next. Europe is a great story, logistics of e-commerce really starting to have an impact.

Attractive valuation, about 25-30% undervalued. Last-mile distribution. Europe is seeing positive fundamentals, especially in the Netherlands and Germany. Add on weakness, sell on strength.

Industrial, but small- and mid-bay segment. In other words, urban distribution warehouses which are somewhat immune to new supply. 2/3 of the portfolio is in Canada, 1/3 in Europe. In partnership with government of Singapore. 

Wide 28% discount to his estimated value in the range of $16.50. Yield is 5.9%.

Very good company with industrial properties in Canada and Europe. Recent pullback in share price has created buying opportunity. Owns shares in portfolio. Nature of short term leases agreements not a huge factor on revenues - expected to remain strong.