Andrew Moffs European Residential REIT ERE.UN-T PAST TOP PICK Jul 29, 2021

Netherlands has a housing shortage and is densely populated. Top-down, it's quite attractive. Great assets. 20% discount to NAV. Rent control legislation has brought clarity, European economic concerns have passed. Wouldn't be surprised if CAR.UN sold it off.

Very favourable. Operating effectively, solid operating team. Trades at over 25% discount to NAV. Pursuing strategic alternative since June, and he's hopeful that value will be unlocked.

Dealing with higher interest rates. Rental markets are still strong with condos, but higher interest still eats into your cashflow. Underlying apartments are still performing well, income grows close to 10% on new rentals. Interest and mortgage expenses will increase over next 2 years, so income will be flat. Distribution safe, but won't grow. 

In Netherlands, multi-family and townhomes. Controlled by CAR.UN. Compelling intrinsic value. Went through strategic review, board not happy with offers. He thinks it will ultimately be sold. Selling off units at a premium to residents to realize value.

It's had a tough time gaining scale, further hampered by high interest rates. They tried a strategic review, but didn't attract buyer interest. In the past month, they sold half their portfolio for 750 million Euros, which crystallized value and increased analyst views of ERE. They are intent on monetizing assets, and the stock price has a good margin of safety.

Undervalued, great fundamentals. Going through strategic alternatives. A buy and hold strategy will reward you; either from selling off properties one by one, or by closing the gap between public and private market value. In the future, the company won't exist and you'll get back your capital, likely at a premium to where trading today.

Doing the right things, but public market is not rewarding it. Selling assets piecemeal until the REIT is liquidated, now about 50%, and distributed income to investors. Hold on, still lots of value. Could buy comfortably here as it's trading below $2.50 per share, but assets arguably are worth $3.