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Opinions Gavin Graham
Dream Global REITDRG.UN.TOTOP PICKDec 11, 2012
Gavin GrahamStock price when the opinion was issued
As of Dec 11, 2019. Market Open.
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Michelle Wearing
Michelle Wearing
Javed MirzaJaved Mirza
Jaime CarrascoHis favourite REIT, because most of the cash flow is coming from Europe, and he wants to generate more cash outside Canada. (Analysts' price target: $15.54)
Jaime CarrascoInovalis (INO.UN-T) or Dream Global (DRG.UN-T)? There is probably too much duplication to own both. Management has done a very, very good job since the IPO. They’ve grown through acquisition and have diversified. They own an institutional quality portfolio, and thinks they have an opportunity to grow in continental Europe. Their assets are primarily in Germany. Instead of buying Canadian names that have exposure to Europe, he is actually going directly into Europe and buying some names.
It is a decent name if you own it. It is tough to switch out of it. He has preferred names including a top pick today. Management promised to diversify the portfolio and they did a good job of that. The payout ratio is high so this is why he is cautious on it. There are risks in the devaluation of the Euro. He does not think they will have to cut the dividend.
Own a lot of real estate properties in Germany. Have been buying office buildings to both move their occupancy up (from 82%) and to move it more towards offices. The great thing is that you get mortgage financing at 2%-2.5% and the yield on these properties is 5%-6% and a lot of the properties they got from their acquisition are below market rent so there is growth there. 7.8% yield.