Opinions
Derek Warren
Dream Global REIT
DRG.UN-T
COMMENT
Apr 22, 2015
$10.290
Stock price when the opinion was issued
REAL ESTATE
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BUY
vs. D.UN-T D.UN isn't cheap at 19.2x. It's improved its asset base to higher quality, focusing on Toronto. Decent 6% growth. They've already had their big move though. DRG.UN has room to go, in contrast. It's a play on Germany and Holland. He see slightly growth, but a much cheaper valuation than D.UN AT 14.5x. Similar balance sheets. Safe payout ratio. He prefers D.UN.
REAL ESTATE
BUY
PAST TOP PICK
(A Top Pick May 30/19, Up 7%) A Euro play in Germany and Holland. Their Q2: the German office market remains strong. They can continue to tap the European markets where interest rates are negative, a competitive advantage to North America; trades at 22% discount to NAV that managers want to shrink. Yields 5.5%.
REAL ESTATE
This is a call on Germany. It is more of an economic call. Dream Global went heavy into the German market. At the time, some of the transactions were wont to criticize. They now hold quite a good portfolio of assets. Most of the reports on this are very positive. He thinks it can continue to do well, as basically you are seeing German properties trade at more expensive values.