Granite REIT

GRT.UN-T

TSE:GRT.UN

0.00
0.00 (0.00%)
Granite Real Estate Investment Trust is a global real estate operating company composed principally of former holdings of Magna International.
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Analysis and Opinions about GRT.UN-T

Signal
Opinion
Expert
COMMENT
COMMENT
October 19, 2017

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.

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Granite REIT (GRT.UN-T)
October 19, 2017

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.

Andy Nasr

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Price
$50.560
Owned
Unknown
COMMENT
COMMENT
June 21, 2017

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.

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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.

Andy Nasr

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Price
$51.850
Owned
Unknown
COMMENT
COMMENT
March 31, 2017

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.

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Granite REIT (GRT.UN-T)
March 31, 2017

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.

Andy Nasr

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Price
$46.520
Owned
Unknown
WAIT
WAIT
September 2, 2016

(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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Granite REIT (GRT.UN-T)
September 2, 2016

(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.

HOLD
HOLD
July 8, 2016

One of the more frustrating stories in that it has gone through management changes and now has a new CEO. 80% of its buildings are Magna (MG-T) with a third being special-purpose large car factories globally, so it has to deal with a very complex leasing structure. However, it also has the best balance sheet. Management, which is as yet unproven, will have to walk this minefield. He just wants to see how the new management handles the leases that are coming up in the next 2 years, and also if they are willing to use their balance sheet to acquire more real estate at a more aggressive pace.

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One of the more frustrating stories in that it has gone through management changes and now has a new CEO. 80% of its buildings are Magna (MG-T) with a third being special-purpose large car factories globally, so it has to deal with a very complex leasing structure. However, it also has the best balance sheet. Management, which is as yet unproven, will have to walk this minefield. He just wants to see how the new management handles the leases that are coming up in the next 2 years, and also if they are willing to use their balance sheet to acquire more real estate at a more aggressive pace.

COMMENT
COMMENT
March 30, 2016

Undertook a strategic review not too long ago, trying to figure out what to do given that the CEO had departed. The decision was to try to get somebody else in to grow the business. They have missed a lot of appreciation in commercial real estate values, and this is being reflected in the share price. Trading at about a 20% discount to NAV. Feels the dividend is sustainable. 6.5% dividend yield is secure.

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Granite REIT (GRT.UN-T)
March 30, 2016

Undertook a strategic review not too long ago, trying to figure out what to do given that the CEO had departed. The decision was to try to get somebody else in to grow the business. They have missed a lot of appreciation in commercial real estate values, and this is being reflected in the share price. Trading at about a 20% discount to NAV. Feels the dividend is sustainable. 6.5% dividend yield is secure.

HOLD
HOLD
February 9, 2016

When this IPO’d, it was primarily dependent on Magna (MG-T) accounting for well over 90% of its net operating income. Management’s objective was to reduce Magna’s exposure to less than 50% NOI within 3 years by making additional acquisitions by using their under leveraged balance sheet. Management has not done that in a very aggressive way, so debt to growth BV, it is still very under leveraged, less than 30%. They have a lot of balance sheet capacity to facilitate additional acquisitions. They haven’t done anything, which is unfortunate because in the interim the value of industrial properties has gone up and interest rates have fallen. They missed out, which is why you are seeing the stock languish. They did undertake a strategic review. The CEO left, so there is new management. Feels the dividend is sustainable.

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Granite REIT (GRT.UN-T)
February 9, 2016

When this IPO’d, it was primarily dependent on Magna (MG-T) accounting for well over 90% of its net operating income. Management’s objective was to reduce Magna’s exposure to less than 50% NOI within 3 years by making additional acquisitions by using their under leveraged balance sheet. Management has not done that in a very aggressive way, so debt to growth BV, it is still very under leveraged, less than 30%. They have a lot of balance sheet capacity to facilitate additional acquisitions. They haven’t done anything, which is unfortunate because in the interim the value of industrial properties has gone up and interest rates have fallen. They missed out, which is why you are seeing the stock languish. They did undertake a strategic review. The CEO left, so there is new management. Feels the dividend is sustainable.

Andy Nasr

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Price
$36.070
Owned
Unknown
COMMENT
COMMENT
February 3, 2016

An industrial REIT. About 80% of its holdings are Magna (MG-T) properties. The company has launched a strategic review to see what they can do with their factory assets. The stock is going to be stuck until they know what the review is going to be doing. This has the best balance sheet of any of the REITs in Canada, so has the potential to make some acquisitions. Dividend yield of about 6.2%, which is incredibly safe.

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Granite REIT (GRT.UN-T)
February 3, 2016

An industrial REIT. About 80% of its holdings are Magna (MG-T) properties. The company has launched a strategic review to see what they can do with their factory assets. The stock is going to be stuck until they know what the review is going to be doing. This has the best balance sheet of any of the REITs in Canada, so has the potential to make some acquisitions. Dividend yield of about 6.2%, which is incredibly safe.

WAIT
WAIT
November 12, 2015

It announced a strategic review as MG-T is 80% of their tenant base. Everyone is waiting. There is so much potential because the balance sheet is so much under levered. He trimmed when the CEO left. You get paid 6% to wait.

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Granite REIT (GRT.UN-T)
November 12, 2015

It announced a strategic review as MG-T is 80% of their tenant base. Everyone is waiting. There is so much potential because the balance sheet is so much under levered. He trimmed when the CEO left. You get paid 6% to wait.

PAST TOP PICK
PAST TOP PICK
November 10, 2015

(Top Pick Jan 6/15, Down 9.11%) They have a great balance sheet, but growth has been slow because they are not seeing a lot of suitable properties. He would sell a portion. If they are not going to use the balance sheet, someone else will (M&A, or share buybacks).

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Granite REIT (GRT.UN-T)
November 10, 2015

(Top Pick Jan 6/15, Down 9.11%) They have a great balance sheet, but growth has been slow because they are not seeing a lot of suitable properties. He would sell a portion. If they are not going to use the balance sheet, someone else will (M&A, or share buybacks).

BUY
BUY
October 8, 2015

Closely tied with MG-T. 80% of revenues come from those properties. They have been trying to bring this down. The dividend is good and in fact it is probably the best performing REIT there is.

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Granite REIT (GRT.UN-T)
October 8, 2015

Closely tied with MG-T. 80% of revenues come from those properties. They have been trying to bring this down. The dividend is good and in fact it is probably the best performing REIT there is.

COMMENT
COMMENT
September 22, 2015

This has a huge exposure to Magna (MG-T) and their operating platforms. Not a bad REIT. The whole REIT sector in Canada has been a bid down. This company generally has had lower leverage making it somewhat attractive. Has never taken a position in the REIT sector. Would prefer Artis (AX.UN-T) or Brookfield Property Partners (BPY.UN-T) over this. (He owns some of their bonds.)

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Granite REIT (GRT.UN-T)
September 22, 2015

This has a huge exposure to Magna (MG-T) and their operating platforms. Not a bad REIT. The whole REIT sector in Canada has been a bid down. This company generally has had lower leverage making it somewhat attractive. Has never taken a position in the REIT sector. Would prefer Artis (AX.UN-T) or Brookfield Property Partners (BPY.UN-T) over this. (He owns some of their bonds.)

WAIT
WAIT
September 21, 2015

There was a sudden management change. This is not usually good news. GRT-T has good exposure to MG-T. It is a single tenant REIT. The balance sheet is quite strong. The dividend is safe. The management change has cast some uncertainly over it. Wait until more is known before buying it.

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Granite REIT (GRT.UN-T)
September 21, 2015

There was a sudden management change. This is not usually good news. GRT-T has good exposure to MG-T. It is a single tenant REIT. The balance sheet is quite strong. The dividend is safe. The management change has cast some uncertainly over it. Wait until more is known before buying it.

PAST TOP PICK
PAST TOP PICK
September 11, 2015

(A Top Pick Sept 5/14. Down 3.04%.) CEO has been terminated by the board and the CFO is stepping in. Doesn’t see this as a slight against the company in any way. Had moved from an overweight position down to a market weight before the news.

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Granite REIT (GRT.UN-T)
September 11, 2015

(A Top Pick Sept 5/14. Down 3.04%.) CEO has been terminated by the board and the CFO is stepping in. Doesn’t see this as a slight against the company in any way. Had moved from an overweight position down to a market weight before the news.

PAST TOP PICK
PAST TOP PICK
July 27, 2015

(Top Pick Jul 15/14, Up 6.40%) They are now looking at a strategic review. He likes that you have a monetization event.

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(Top Pick Jul 15/14, Up 6.40%) They are now looking at a strategic review. He likes that you have a monetization event.

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