
TSE:MEQ
This summary was created by AI, based on 10 opinions in the last 12 months.
Mainstreet Equity Corp (MEQ-T) has garnered a mixture of enthusiasm and caution from various experts. While it's noted that the company is not structured as a traditional REIT, allowing it to retain more capital, the focus on affordable, mid-market rentals positions it well against larger REITs that avoid this space. Despite recent sell-offs, experts highlight the reasonable valuation and robust growth potential, underscored by the company's substantial cash reserves for acquisitions and improvements. The unique business model allows for counter-cyclical investments, which many see as a strategic advantage in the current market environment where rental prices are rising due to limited supply. However, some express concerns about the lack of significant dividends and the volatility associated with insider ownership.
Thinks there is a possibility of a dividend, but it will be relatively small. Very similar to Boardwalk (BEI.UN-T). They own apartments in Western Canada. CEO has really focused on developing properties so they tend to take a lot of the cash flow they generate, plow it back into the company and unlock a lot of value. NAV is north of $35 so feels there could be some potential upside.
(A Past Pick Aug 10/11. Up 88.81%.) Still likes. 2 story apartment buildings in Western Canada. Fantastic operation. Vacancy rates in the West are getting tighter so subsidies are getting lower. Trades at a discount to NAV and there is probably $4-$5 left out of this but will probably take 6 months to do it. No yield.
(Top Pick Apr 25/12, Up 30.12%)