Dream Office REIT

D.UN-T

TSE:D.UN

31.18
0.23 (0.74%)
Dream Office REIT is one of the largest Real Estate Investment Trusts in Canada. The company owns office buildings across Canada totalling approx 23 million square feet of gross leaseable area.
More at Wikipedia

Analysis and Opinions about D.UN-T

Signal
Opinion
Expert
DON'T BUY
DON'T BUY
December 9, 2014

Payout now exceeds earnings, so the payout might be in danger. You have a lot of new office buildings coming on, especially in 2017-2018 in the Toronto, Vancouver and Calgary markets. CAP rates have been at all-time lows and it basically doesn’t get any better for the REITs, and yet this one has been breaking down. He personally does not invest in companies with dividend yields that don’t get covered by earnings with a safe margin of coverage.

Dream Office REIT (D.UN-T)
December 9, 2014

Payout now exceeds earnings, so the payout might be in danger. You have a lot of new office buildings coming on, especially in 2017-2018 in the Toronto, Vancouver and Calgary markets. CAP rates have been at all-time lows and it basically doesn’t get any better for the REITs, and yet this one has been breaking down. He personally does not invest in companies with dividend yields that don’t get covered by earnings with a safe margin of coverage.

Patrick Horan
Portfolio Manager, Agilith Capital Inc
Price
$25.090
Owned
No
COMMENT
COMMENT
November 13, 2014

Dream Office (D.UN-T) or Dream Global (DRG.UN-T). Which would you Sell? This is a lot of Toronto
and Calgary offices. You have to balance out where you feel the growth is going to be. What is happening in Toronto and Calgary is that there is a lot of construction, about 10 million square feet of office that is going to come
online in the next few years. That will keep rents down which is why this one has not been doing very well. The dividend is safe and the stock is cheap. Just don't expect a lot of upside in the next little while. Of the 2, he would keep Dream Global.

Dream Office REIT (D.UN-T)
November 13, 2014

Dream Office (D.UN-T) or Dream Global (DRG.UN-T). Which would you Sell? This is a lot of Toronto
and Calgary offices. You have to balance out where you feel the growth is going to be. What is happening in Toronto and Calgary is that there is a lot of construction, about 10 million square feet of office that is going to come
online in the next few years. That will keep rents down which is why this one has not been doing very well. The dividend is safe and the stock is cheap. Just don't expect a lot of upside in the next little while. Of the 2, he would keep Dream Global.

Derek Warren
Asst Vice President, Lincluden Investment Mgmnt
Price
$27.990
Owned
No
HOLD
HOLD
October 16, 2014

Office assets across Canada. Has been in a range because sentiment around the office sector is very poor right now. There is supply coming on in both Toronto and Calgary and the market fears lower rents and lower occupancies. It is trading at a 10% discount to net asset value.

Dream Office REIT (D.UN-T)
October 16, 2014

Office assets across Canada. Has been in a range because sentiment around the office sector is very poor right now. There is supply coming on in both Toronto and Calgary and the market fears lower rents and lower occupancies. It is trading at a 10% discount to net asset value.

Michael Missaghie
VP & Sr. Portfolio Manager, Sentry Investments
Price
$27.390
Owned
Unknown
HOLD
HOLD
October 2, 2014

Excess supply is what has been weighing on this REIT. There still is suburban office exposure at about 60%. Dividend is sustainable, so he would hang on to it. Likes and owns BOX.UN-T, thinking it could get taken out.

Excess supply is what has been weighing on this REIT. There still is suburban office exposure at about 60%. Dividend is sustainable, so he would hang on to it. Likes and owns BOX.UN-T, thinking it could get taken out.

Andy Nasr
VP & Investment Strategist, Sentry Investments
Price
$27.840
Owned
No
DON'T BUY
DON'T BUY
September 25, 2014

8% yield. There are a couple of challenges. It is in the office space and this area has the weakest fundamentals because there is a lot of supply coming to market over the next couple of years without the same demand coming. This one was a growth by acquisition story and was good in a falling interest rate environment but now there is a shift in the market and it is all about organic growth. The valuation is attractive here, but there are better companies.

Dream Office REIT (D.UN-T)
September 25, 2014

8% yield. There are a couple of challenges. It is in the office space and this area has the weakest fundamentals because there is a lot of supply coming to market over the next couple of years without the same demand coming. This one was a growth by acquisition story and was good in a falling interest rate environment but now there is a shift in the market and it is all about organic growth. The valuation is attractive here, but there are better companies.

Michele Robitaille
Portfolio Manager, Guardian Capital
Price
$27.940
Owned
Unknown
BUY
BUY
September 19, 2014

Likes at this level. Pays an 8% distribution. Trading at about a 15% discount is estimated NAV. Payout ratio looks fine. Trending down at about 92%. Thinks that improved office market sentiment may be 6-9 months away.

Dream Office REIT (D.UN-T)
September 19, 2014

Likes at this level. Pays an 8% distribution. Trading at about a 15% discount is estimated NAV. Payout ratio looks fine. Trending down at about 92%. Thinks that improved office market sentiment may be 6-9 months away.

Greg Newman
Director & Portfolio Manager, Scotia Wealth Management
Price
$27.960
Owned
Yes
HOLD
HOLD
September 5, 2014

Office markets have been in a bit of a decline. This REIT is very cheap and is staying there because people think there is no catalyst. There is no risk so you can sit with it and collect the yield.

Dream Office REIT (D.UN-T)
September 5, 2014

Office markets have been in a bit of a decline. This REIT is very cheap and is staying there because people think there is no catalyst. There is no risk so you can sit with it and collect the yield.

Derek Warren
Asst Vice President, Lincluden Investment Mgmnt
Price
$29.010
Owned
No
SELL
SELL
September 4, 2014

Preferred Shares. A non-investment grade REIT. There is so much debt ahead of you. Buy the equity instead of the preferreds.

Dream Office REIT (D.UN-T)
September 4, 2014

Preferred Shares. A non-investment grade REIT. There is so much debt ahead of you. Buy the equity instead of the preferreds.

Joey Mack
Director, Fixed Income, ScotiaCapital
Price
$28.980
Owned
Unknown
HOLD
HOLD
August 12, 2014

When he looks at the office sector in Canada, one of his concerns is that supply is going to increase by about 5% nationally during the next few years. A lot of what they own is suburban office space and when there is a big increase in supply, it tends to pressure suburban rents more than central business district rents. As a result of that, the stock has not been very well and is trading at about a 15% discount to NAV. (See Top Picks.)

When he looks at the office sector in Canada, one of his concerns is that supply is going to increase by about 5% nationally during the next few years. A lot of what they own is suburban office space and when there is a big increase in supply, it tends to pressure suburban rents more than central business district rents. As a result of that, the stock has not been very well and is trading at about a 15% discount to NAV. (See Top Picks.)

Andy Nasr
VP & Investment Strategist, Sentry Investments
Price
$28.910
Owned
Yes
TOP PICK
TOP PICK
July 29, 2014

The stock has been unfairly hammered by the market and has very nice upside potential. Yield of 7.66%.

The stock has been unfairly hammered by the market and has very nice upside potential. Yield of 7.66%.

Ross Healy
Chairman, Strategic Analysis Corp
Price
$29.230
Owned
Yes
DON'T BUY
DON'T BUY
July 15, 2014

It is stuck in a rut. They own a lot of the buildings in the core. They are adding a lot of supply. Does not see a solution any time soon. Prefers Dream unlimited. ‘Dream’ is a branding effort. They are changing the way they do things in this company and he is positive about it.

It is stuck in a rut. They own a lot of the buildings in the core. They are adding a lot of supply. Does not see a solution any time soon. Prefers Dream unlimited. ‘Dream’ is a branding effort. They are changing the way they do things in this company and he is positive about it.

Derek Warren
Asst Vice President, Lincluden Investment Mgmnt
Price
$29.040
Owned
No
HOLD
HOLD
July 9, 2014

Dream REITs are not knew, just renamed. In 2016/17 is when a lot more supply comes on and is only 50% pre-leased. He continues to own it because it trades below NAV, leverage has lowered over the last few years and the distribution is stable.

Dream REITs are not knew, just renamed. In 2016/17 is when a lot more supply comes on and is only 50% pre-leased. He continues to own it because it trades below NAV, leverage has lowered over the last few years and the distribution is stable.

Michael Missaghie
VP & Sr. Portfolio Manager, Sentry Investments
Price
$29.100
Owned
Yes
COMMENT
COMMENT
June 13, 2014

Dream Office REIT (D.UN-T) versus Summit Industrial REIT (SMU.UN-T)? In general, he really likes the industrial space, which is going to benefit the most from the improving US economy as industry picks up. This one would have a little bit more growth opportunity. Summit is fully leased, and has a longer lease term, so you won’t see as much turnover, and you want turnover in the sort term. (See Top Picks.)

Dream Office REIT (D.UN-T) versus Summit Industrial REIT (SMU.UN-T)? In general, he really likes the industrial space, which is going to benefit the most from the improving US economy as industry picks up. This one would have a little bit more growth opportunity. Summit is fully leased, and has a longer lease term, so you won’t see as much turnover, and you want turnover in the sort term. (See Top Picks.)

Derek Warren
Asst Vice President, Lincluden Investment Mgmnt
Price
$28.900
Owned
No
DON'T BUY
DON'T BUY
May 23, 2014

Dundee (D.UN-T) or H&R Real Estate (HR.UN-T)? She would recommend H&R. One of the challenges with Dundee is that it had really grown through acquisitions and played the Cap Rate compression game and that game is now over. She is a little less favourable on office properties, which she thinks will potentially be a little bit weak going forward.

Dundee (D.UN-T) or H&R Real Estate (HR.UN-T)? She would recommend H&R. One of the challenges with Dundee is that it had really grown through acquisitions and played the Cap Rate compression game and that game is now over. She is a little less favourable on office properties, which she thinks will potentially be a little bit weak going forward.

Michele Robitaille
Portfolio Manager, Guardian Capital
Price
$29.390
Owned
Unknown
WAIT
WAIT
April 29, 2014

There is so much building going on in Toronto south of the tracks that the leasing environment is becoming very aggressive. They feel some of the suburban tenants will leave and be hard to replace. It lacks a catalyst and we need to see what is going to happen with the office market, which could take two years.

There is so much building going on in Toronto south of the tracks that the leasing environment is becoming very aggressive. They feel some of the suburban tenants will leave and be hard to replace. It lacks a catalyst and we need to see what is going to happen with the office market, which could take two years.

Derek Warren
Asst Vice President, Lincluden Investment Mgmnt
Price
$29.010
Owned
No
PAST TOP PICK
PAST TOP PICK
April 2, 2014

(A Top Pick April 1/13. Down 15.47%.) Got out of this one a while ago. This one was hurt more than any other REIT out there. Part of the issue was the external management. Thinks this is a great Buy.

(A Top Pick April 1/13. Down 15.47%.) Got out of this one a while ago. This one was hurt more than any other REIT out there. Part of the issue was the external management. Thinks this is a great Buy.

Michael Bowman
Portfolio Manager, Wickham Investment Management
Price
$29.050
Owned
No
SELL
SELL
March 27, 2014

Prefers a Top Pick of his today. Owns a little bit still. He avoids office sector because it has an increase in supply. He is worried about ability to increase rents and sustain cash flow. Dividend is safe.

Prefers a Top Pick of his today. Owns a little bit still. He avoids office sector because it has an increase in supply. He is worried about ability to increase rents and sustain cash flow. Dividend is safe.

Andy Nasr
VP & Investment Strategist, Sentry Investments
Price
$28.520
Owned
Yes
HOLD
HOLD
March 19, 2014

Predominantly office REIT. Got hit over the last 6 months or so because they have done a fair bit of acquisition, raised equity to do so and in combination with that there are some fears about supply in the office markets, most notably in Calgary and Toronto. This drove the units down in comparison with some of their peers. Have actually improved their asset quality over the last 2-3 years, have lowered leverage and their payout ratio is very sustainable. Trading at about a 10%-12% discount to NAV. 7.8% yield.

Predominantly office REIT. Got hit over the last 6 months or so because they have done a fair bit of acquisition, raised equity to do so and in combination with that there are some fears about supply in the office markets, most notably in Calgary and Toronto. This drove the units down in comparison with some of their peers. Have actually improved their asset quality over the last 2-3 years, have lowered leverage and their payout ratio is very sustainable. Trading at about a 10%-12% discount to NAV. 7.8% yield.

Michael Missaghie
VP & Sr. Portfolio Manager, Sentry Investments
Price
$28.390
Owned
Yes
WEAK BUY
WEAK BUY
February 26, 2014

Externally managed. Thinks it won’t change and that it will hold it back. It is already at the bottom so going forward it will rise as the value of the properties rise. Has a lot of exposure to GTA office markets but it is priced in.

Dream Office REIT (D.UN-T)
February 26, 2014

Externally managed. Thinks it won’t change and that it will hold it back. It is already at the bottom so going forward it will rise as the value of the properties rise. Has a lot of exposure to GTA office markets but it is priced in.

Derek Warren
Asst Vice President, Lincluden Investment Mgmnt
Price
$29.250
Owned
Unknown
HOLD
HOLD
January 24, 2014

Has been some softness in the office sector because of a threat of increased supply. You’ll see some new developments get delivered to the market during the next 3-5 years, mostly in major city centers like Calgary and Toronto. Usually when you see an increase in supply, you see a decrease in rents. Nationally, supply is going to increase by about 5% in the next few years, which will pressure this company’s rents. Yield is absolutely safe. Feels the stock will drift down $1-$2 lower.

Dream Office REIT (D.UN-T)
January 24, 2014

Has been some softness in the office sector because of a threat of increased supply. You’ll see some new developments get delivered to the market during the next 3-5 years, mostly in major city centers like Calgary and Toronto. Usually when you see an increase in supply, you see a decrease in rents. Nationally, supply is going to increase by about 5% in the next few years, which will pressure this company’s rents. Yield is absolutely safe. Feels the stock will drift down $1-$2 lower.

Andy Nasr
VP & Investment Strategist, Sentry Investments
Price
$29.180
Owned
Unknown
COMMENT
COMMENT
January 16, 2014

Dundee (D.UN-T) or Cominar (CUF.UN-T)? Trading below his assumed NAV. To him, Cominar is the better pick because of a slightly higher dividend and a slightly lower payout ratio. Also, a little less expensive. This one probably looks better on leverage.

Dream Office REIT (D.UN-T)
January 16, 2014

Dundee (D.UN-T) or Cominar (CUF.UN-T)? Trading below his assumed NAV. To him, Cominar is the better pick because of a slightly higher dividend and a slightly lower payout ratio. Also, a little less expensive. This one probably looks better on leverage.

Greg Newman
Director & Portfolio Manager, Scotia Wealth Management
Price
$29.450
Owned
Unknown
COMMENT
COMMENT
January 7, 2014

Got hit along with the other REITs during the interest-rate scare. Very attractive dividend yield. Good, long-term hold for income.

Got hit along with the other REITs during the interest-rate scare. Very attractive dividend yield. Good, long-term hold for income.

Christine Poole
CEO & Managing Director, GlobeInvest Capital Management
Price
$29.400
Owned
No
COMMENT
COMMENT
January 6, 2014

There is nothing particularly wrong with this REIT. Well-run company. It’s just that rising interest rates are going to negatively impact all of these yield plays that investors were looking at as quasi-fixed income yields. Doesn’t know that he would get out of this but don’t expect much upside in the next couple of years.

There is nothing particularly wrong with this REIT. Well-run company. It’s just that rising interest rates are going to negatively impact all of these yield plays that investors were looking at as quasi-fixed income yields. Doesn’t know that he would get out of this but don’t expect much upside in the next couple of years.

Lorne Steinberg
President & Portfolio Manager, Lorne Steinberg Wealth Management Inc
Price
$29.380
Owned
Unknown
TOP PICK
TOP PICK
January 2, 2014

Has been really beaten up. Yield down to 8%. One of the two REITs with the highest yield and has a terrific balance sheet. Nice discount to book value.

Has been really beaten up. Yield down to 8%. One of the two REITs with the highest yield and has a terrific balance sheet. Nice discount to book value.

Ross Healy
Chairman, Strategic Analysis Corp
Price
$28.740
Owned
Yes
BUY
BUY
December 17, 2013

Not afraid to own the convertibles. They have been beat up too much. Concern over office markets becoming too weak in the Toronto and Calgary. Excellent management. Pressure has been well overdone.

Dream Office REIT (D.UN-T)
December 17, 2013

Not afraid to own the convertibles. They have been beat up too much. Concern over office markets becoming too weak in the Toronto and Calgary. Excellent management. Pressure has been well overdone.

Derek Warren
Asst Vice President, Lincluden Investment Mgmnt
Price
$27.750
Owned
Unknown
DON'T BUY
DON'T BUY
November 21, 2013

This was punished a lot more than some of the other REITs over the summer. In the office space which is her least favourite property class right now. Because of supply/demand balance, this is an area that will be seeing a little bit of excess supply coming to the market, particularly in Toronto and Calgary. Has been a growth by acquisition story and have done very, very well over a period of time, but given the changing sentiment on the changing direction of interest rates and that the cap rate compression story is behind us, acquisitions are going to be much, much harder to come by.

Dream Office REIT (D.UN-T)
November 21, 2013

This was punished a lot more than some of the other REITs over the summer. In the office space which is her least favourite property class right now. Because of supply/demand balance, this is an area that will be seeing a little bit of excess supply coming to the market, particularly in Toronto and Calgary. Has been a growth by acquisition story and have done very, very well over a period of time, but given the changing sentiment on the changing direction of interest rates and that the cap rate compression story is behind us, acquisitions are going to be much, much harder to come by.

Michele Robitaille
Portfolio Manager, Guardian Capital
Price
$28.160
Owned
No
COMMENT
COMMENT
November 20, 2013

Now a pure play office REIT in Canada. While it seemed like a good idea 2 years ago to go into a pure play office REIT, the last few months, the office sector has seen the most negative sentiment of any other sector in Canada. With their asset management team, they will be able to deal with what ever lease maturities they are going to see over the next 2-3 years. Units are trading close to a 20% discount to NAV now. Distribution yield should be stable as well as having 2%-3% cash flow growth.

Dream Office REIT (D.UN-T)
November 20, 2013

Now a pure play office REIT in Canada. While it seemed like a good idea 2 years ago to go into a pure play office REIT, the last few months, the office sector has seen the most negative sentiment of any other sector in Canada. With their asset management team, they will be able to deal with what ever lease maturities they are going to see over the next 2-3 years. Units are trading close to a 20% discount to NAV now. Distribution yield should be stable as well as having 2%-3% cash flow growth.

Michael Missaghie
VP & Sr. Portfolio Manager, Sentry Investments
Price
$28.290
Owned
Unknown
BUY WEAKNESS
BUY WEAKNESS
November 15, 2013

On valuation, this one is at about 11.8 X forward, which he would give an A for. Payout ratio is 93%, which he would give a B. Growth rate is not so good at 1.2% over the next 2 years so he would give this a C. Balance sheet is improving with fair value at about 41%, which he would give as a B+. You could buy this one on a pull back.

Dream Office REIT (D.UN-T)
November 15, 2013

On valuation, this one is at about 11.8 X forward, which he would give an A for. Payout ratio is 93%, which he would give a B. Growth rate is not so good at 1.2% over the next 2 years so he would give this a C. Balance sheet is improving with fair value at about 41%, which he would give as a B+. You could buy this one on a pull back.

Greg Newman
Director & Portfolio Manager, Scotia Wealth Management
Price
$28.570
Owned
Unknown
HOLD
HOLD
November 14, 2013

Had trimmed a little because he was worried about an increase in office supply. Not that expensive as compared to other REITs. Good value and good yield.

Dream Office REIT (D.UN-T)
November 14, 2013

Had trimmed a little because he was worried about an increase in office supply. Not that expensive as compared to other REITs. Good value and good yield.

Andy Nasr
VP & Investment Strategist, Sentry Investments
Price
$28.590
Owned
Yes
COMMENT
COMMENT
November 13, 2013

They are paying out cash flow from their properties. So what you have to worry about is are all their buildings becoming empty so the 7.9% distribution is very safe. This stock has been beat up due to its exposure to the secondary office markets of Calgary and Toronto, the only areas where there is a lot of building. He feels the stock is too cheap and is offering an opportunity but their future is a little rocky for the next couple of years.

Dream Office REIT (D.UN-T)
November 13, 2013

They are paying out cash flow from their properties. So what you have to worry about is are all their buildings becoming empty so the 7.9% distribution is very safe. This stock has been beat up due to its exposure to the secondary office markets of Calgary and Toronto, the only areas where there is a lot of building. He feels the stock is too cheap and is offering an opportunity but their future is a little rocky for the next couple of years.

Derek Warren
Asst Vice President, Lincluden Investment Mgmnt
Price
$28.460
Owned
No
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