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Investor Insights

This summary was created by AI, based on 2 opinions in the last 12 months.

The experts agree that Smart REIT (SRU.UN-T) is a stable choice for income, with a defensive profile and a safe distribution of 8%. However, there is very little growth expected, and the tight cash flow coverage, high payout ratio, and low earnings growth make it less attractive for potential earnings. As the retail sector faces challenges and the payout ratio remains high, the consensus is that Smart REIT is a steady but unexciting investment option.

Consensus
Steady
Valuation
Fair Value
BUY
Smart REIT

REIT space is doing well because of interest rates coming down in Canada. Formula is tried, tested, and true. Good value in the name. Good place to be, as long as you have some diversification. Watch the payout ratio.

investment companies / funds
BUY
Smart REIT

Likes real estate in general, sector will benefit from lower interest rates. In particular, likes those that are building their businesses; not the ones that are just collecting rents, paying dividends, and going sideways. A good business run by good people. 

investment companies / funds
DON'T BUY
Smart REIT

Great to have a tenant like WMT, as it makes the cashflow very dependable. Being so defensive means not a lot of internal growth, really lags compared to peers, bottom line cashflow not increasing. Higher leverage than peers. Muted earnings growth. 

Higher distribution yield around 8%. Could own for the yield. Dividend secure. Payout ratio below 100%.

investment companies / funds
HOLD
Smart REIT

Great job getting into other asset types by going vertically on what they already own. Operating income dictated mainly by WMT, which gives a very defensive profile, so he doesn't really worry. Flipside is very little growth. Tight cashflow coverage. Believes distribution of 8% is safe, even though payout ratio spiked above 100% temporarily. Better earnings growth elsewhere.

investment companies / funds
HOLD
Smart REIT
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research.

Units are quite cheap at 11X cash flow, and generally we like it for income. Very little growth is expected, and of course inflation/rates impact it, and the retail sector is somewhat under siege right now. Payout ratio is high at 93%, but did drop from 96% in the Q1. Cash flow in the quarter improved to 54c from 51c. Decent for income but we would not expect much excitement here. 
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investment companies / funds
HOLD
Smart REIT

Yield of 7% is extremely attractive. Nothing wrong with it, stable. Trades at a discount. Well positioned to weather a challenging economic environment with WMT, but a lower growth profile. Hold, and collect the distribution. Other opportunities in the space, such as FCR.UN.

investment companies / funds
Unspecified
Smart REIT

It operates across Canada with its principle tenant being Walmart. Has stable cash flow with little growth although it is increasing density in existing space. He feels there are other places to be in real estate.

investment companies / funds
HOLD
Smart REIT
A defensive chapter within the retail story. Pristine balance sheet. 1/3 of space anchored by WMT, a strong leasing partner. Selling on-site condos, and immigration keeps demand high. Yield is 6%.
investment companies / funds
DON'T BUY
Smart REIT
Solid operations, slight beat. Operating income up 5%. He's modelled a decent growth rate of 4.6% 2021-23. Nice dividend, good payout ratio. Reasonable multiple. Don't buy here. He wants a nicer growth rate such as with CRR.UN. See his Top Picks.
investment companies / funds
WAIT
Smart REIT
He owns the bonds. Retail nature doesn't fit his criteria. One of the better retail assets out there, anchored by WMT, a very strong tenant. Adding condos, rentals, and developments. He's hesitant to get back into retail. Not a bad entry point.
investment companies / funds
BUY
Smart REIT

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Diversification effort makes sense. Management is solid and the CEO has significant stakes in the REIT. Revenu was inline with estimates. Per-unit cash flow was 5% better, rising 12%. Occupancy was 97.4%. Debt ratio is good at 42.9% and payout ratio is ok with 85.8%. Fine for income. Unlock Premium - Try 5i Free

investment companies / funds
COMMENT
Smart REIT
Great development sites. A good site north of Toronto will add lots of value. Doesn't have same internal growth prospects as some others but is very defensive with a stable distribution. What will close gap to NAV. Not adding today.
investment companies / funds
HOLD
Smart REIT
Great operator. Dominant lease to WMT, so distribution is safe. Long-term hold for income. As a total return investor, he looks for more. Tougher leasing environment, below 98% occupancy level.
investment companies / funds
PAST TOP PICK
Smart REIT
(A Top Pick Oct 19/20, Up 59%) A year ago people were seeing lock-downs but most properties have Walmart and Dollarama, which stayed open, as tenants. He still likes these REITs. You might want to trim a bit of your gains.
investment companies / funds
HOLD
Smart REIT
65% Walmart. It is retail, anchored primarily by Walmart. It comes with very low rent growth but an attractive distribution growth that is quite safe. He can find growth and value elsewhere, however.
investment companies / funds
Showing 1 to 15 of 241 entries

Smart REIT(SRU.UN-T) Rating

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 2

Neutral - Hold Signals / Votes : 1

Bearish - Sell Signals / Votes : 1

Total Signals / Votes : 4

Stockchase rating for Smart REIT is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Smart REIT(SRU.UN-T) Frequently Asked Questions

What is Smart REIT stock symbol?

Smart REIT is a Canadian stock, trading under the symbol SRU.UN-T on the Toronto Stock Exchange (SRU.UN-CT). It is usually referred to as TSX:SRU.UN or SRU.UN-T

Is Smart REIT a buy or a sell?

In the last year, 4 stock analysts published opinions about SRU.UN-T. 2 analysts recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Smart REIT.

Is Smart REIT a good investment or a top pick?

Smart REIT was recommended as a Top Pick by on . Read the latest stock experts ratings for Smart REIT.

Why is Smart REIT stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Smart REIT worth watching?

4 stock analysts on Stockchase covered Smart REIT In the last year. It is a trending stock that is worth watching.

What is Smart REIT stock price?

On 2024-10-04, Smart REIT (SRU.UN-T) stock closed at a price of $25.91.