Granite REIT
GRT.UN-T
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About Granite REIT (GRT.UN-T)
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A REIT for a TFSA? He likes multi-family residentials and industrials REITs. So, he likes IIP.UN-T and Granite REIT.
A REIT for a TFSA? He likes multi-family residentials and industrials REITs. So, he likes IIP.UN-T and Granite REIT.
You're buying this for the new CEO, not its assets. It was an industrial REIT and was the real estate entity of Magna. It's since diversified out of it. Granite doesn't have much leverage to expand into other industrial assets. It brought in the CEO of Pure Industrial REIT who is the right person in place. Are you too far along in the industrial real estate cycle for him to go out and find value? He thinks the industrial story has legs. He likes Granite. But it when it sells off a bit. Makes sense long term.
You're buying this for the new CEO, not its assets. It was an industrial REIT and was the real estate entity of Magna. It's since diversified out of it. Granite doesn't have much leverage to expand into other industrial assets. It brought in the CEO of Pure Industrial REIT who is the right person in place. Are you too far along in the industrial real estate cycle for him to go out and find value? He thinks the industrial story has legs. He likes Granite. But it when it sells off a bit. Makes sense long term.
There was a strategic review by management for potentially selling the company, but nothing came of that. There was some turnover with the CEO. The big issue is when it initially came to the market, it had very significant exposure to Magna (MG-T), which was their largest tenant. However, it had a pristine balance sheet. When you think of the Debt to Growth Book Value, it had approximately 25%, and the theory was that if they increased the leverage and took that Debt to Growth Book Value to 40%, they would have $1 billion to play with, diversify tenant exposure, make acquisitions. However they haven’t done any of that. That is unfortunate, because real estate prices have gone up significantly. It pays a decent dividend of 5%. His concern is that you really do need the leadership in there.
There was a strategic review by management for potentially selling the company, but nothing came of that. There was some turnover with the CEO. The big issue is when it initially came to the market, it had very significant exposure to Magna (MG-T), which was their largest tenant. However, it had a pristine balance sheet. When you think of the Debt to Growth Book Value, it had approximately 25%, and the theory was that if they increased the leverage and took that Debt to Growth Book Value to 40%, they would have $1 billion to play with, diversify tenant exposure, make acquisitions. However they haven’t done any of that. That is unfortunate, because real estate prices have gone up significantly. It pays a decent dividend of 5%. His concern is that you really do need the leadership in there.
This has gone through a transition. It had significant exposure to Magna (MG-T) being a dominant tenant, accounting for about 80% of its NOI, which is still the case. Since 2011-2012, they’ve only done a couple of acquisitions, totaling about $100 million, which is unfortunate, because they have a very well capitalized balance sheet. That urged a couple of activist shareholders to suggest a new board and new management was needed, which pushed the stock price up significantly. If they use their balance sheet, it is debatable what their NAV will be, because you aren’t sure what they are going to buy. He would prefer other industrial REITs at this time.
This has gone through a transition. It had significant exposure to Magna (MG-T) being a dominant tenant, accounting for about 80% of its NOI, which is still the case. Since 2011-2012, they’ve only done a couple of acquisitions, totaling about $100 million, which is unfortunate, because they have a very well capitalized balance sheet. That urged a couple of activist shareholders to suggest a new board and new management was needed, which pushed the stock price up significantly. If they use their balance sheet, it is debatable what their NAV will be, because you aren’t sure what they are going to buy. He would prefer other industrial REITs at this time.
Return of capital reduces your cost base. There is potentially an opportunity for them to utilize an under levered balance sheet. They have a lot of exposure to MG-T as a tenant. There was some turnover in management.
Return of capital reduces your cost base. There is potentially an opportunity for them to utilize an under levered balance sheet. They have a lot of exposure to MG-T as a tenant. There was some turnover in management.
(Market Call Minute.) High Magna (MG-T) exposure, but they are working through the leases. There may be some possible property sells to limit that exposure. He is waiting to see what happens.
(Market Call Minute.) High Magna (MG-T) exposure, but they are working through the leases. There may be some possible property sells to limit that exposure. He is waiting to see what happens.
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