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TSE:DRG.UN

Dream Global REIT (DRG.UN.TO)

16.79
+0.01 (0.06%)
as of Dec 11, 2019, 9:00:00 pm Market Open.
84 watching
0
BUY
8.4%. Post offices and banks in Germany. Growth is what they can do in terms of aggregating real estate. People are waiting to see what comes next in way of transaction standpoint. Expects it to grow like D.UN-T
DON'T BUY
Chart doesn't look very good. REITs should be holding a better value than this. There was a topping formation in January to March followed by a down trend. The recent spike is encouraging but generally speaking, he would hold off.
TOP PICK
REIT. If you believe that Germany is going to continue to be a powerful country and if you believe in the euro dollar, then you can speculate on this rather nicely. Close to 8% yield. $1 billion of assets and the ability to diversify.
BUY
Slight discount to net asset value. Post offices and banks in Germany. Great management team. Payout ratio is sustainable and debt ratio is low.
COMMENT
Assets are post office buildings, all in Germany. Claim they have currency hedges. A problem is that the post office market is shrinking. Has enough cushion that it will be able to hold its position. A bet on Germany.
SHORT
Sees a lot of headwinds. Has a heavy concentration of leases with Deutsche Post. Post offices globally have been contracting. Overvalue. This is a Short rather than a Buy.
DON'T BUY
Portfolio of German banks and post offices. Just started trading so there are no operations that he can comment on.
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