Dream Industrial REIT
DIR.UN-T
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Not many warehouses. He likes Summit Real Estate Investment (SMU.UN-T) more given their stronger presence in the GTA. Still it is a safe bet now for a long-term investor in a sector that is growing. One of the lower growth names in the sector but definitely likes the sector.
Not many warehouses. He likes Summit Real Estate Investment (SMU.UN-T) more given their stronger presence in the GTA. Still it is a safe bet now for a long-term investor in a sector that is growing. One of the lower growth names in the sector but definitely likes the sector.
Dream Office vs. Dream Industrial REIT? Dream has been on a rollercoaster the last four years: overexposed to Alberta, sold Scotia Plaza, trying to diversify within Alberta; onerous management contracts to buy out. They're a work-in-progress with better days ahead. He would lean towards the Industrial REIT, but still expensive though it's outperformed Office REIT, but he just doesn't trust it.
Dream Office vs. Dream Industrial REIT? Dream has been on a rollercoaster the last four years: overexposed to Alberta, sold Scotia Plaza, trying to diversify within Alberta; onerous management contracts to buy out. They're a work-in-progress with better days ahead. He would lean towards the Industrial REIT, but still expensive though it's outperformed Office REIT, but he just doesn't trust it.
This sector is doing incredibly well. In the REIT space, industrial properties are benefiting from the technological move, because they can demand really good sized rents if they have the proper facilities. That is growing quite well versus retail or office, which are really having problems.
This sector is doing incredibly well. In the REIT space, industrial properties are benefiting from the technological move, because they can demand really good sized rents if they have the proper facilities. That is growing quite well versus retail or office, which are really having problems.
Industrial markets are really hot. There is a lot of growth in rents and a lot of demand from tenants. A lot of this is coming from a push of the e-commerce world, where they need more logistics, more FedExes, etc. It will also start affecting smaller centres such as this company has, as people try to have same day delivery. The yield is very sustainable and the balance sheet is okay. Over the next couple of quarters, he is looking to see a little bit more of the transition improving economics of the revenue and rent lines. A good name. Dividend yield of 8.3%.
Industrial markets are really hot. There is a lot of growth in rents and a lot of demand from tenants. A lot of this is coming from a push of the e-commerce world, where they need more logistics, more FedExes, etc. It will also start affecting smaller centres such as this company has, as people try to have same day delivery. The yield is very sustainable and the balance sheet is okay. Over the next couple of quarters, he is looking to see a little bit more of the transition improving economics of the revenue and rent lines. A good name. Dividend yield of 8.3%.
Retail is doing worse than some of the other subsectors. He thinks industrial is a great way to hedge. He owns REI.UN-T. Most of their properties are anchored by grocery stories and so on. It is not an enclosed mall. The worry is if tenants will remain in malls. As Ecommerce increases there will be more demand for warehouse space.
Retail is doing worse than some of the other subsectors. He thinks industrial is a great way to hedge. He owns REI.UN-T. Most of their properties are anchored by grocery stories and so on. It is not an enclosed mall. The worry is if tenants will remain in malls. As Ecommerce increases there will be more demand for warehouse space.
He prefers the industrial name just because he likes the industrial market. Because there is a bit of taint against the Dream Empire, this has traded as a discount. However, the properties themselves are performing alright. Because of the Amazon phenomenon, some of the smaller industrial plots closer to downtown cores are being utilized more often by delivery companies to create faster deliveries.
He prefers the industrial name just because he likes the industrial market. Because there is a bit of taint against the Dream Empire, this has traded as a discount. However, the properties themselves are performing alright. Because of the Amazon phenomenon, some of the smaller industrial plots closer to downtown cores are being utilized more often by delivery companies to create faster deliveries.
7 analysts have a cash flow estimate of $.93, compared to last years of $.91. Dividend yield of 8.2% is at risk, because there is a payout of 93% of 4th quarter trailing cash flow. Earnings year-over-year was down 1% and sales were down 2%. ROE of 9% is reasonable. It ranks 558, in the bottom 3rd of his database. Prefers others. Dividend yield of 8%+.
7 analysts have a cash flow estimate of $.93, compared to last years of $.91. Dividend yield of 8.2% is at risk, because there is a payout of 93% of 4th quarter trailing cash flow. Earnings year-over-year was down 1% and sales were down 2%. ROE of 9% is reasonable. It ranks 558, in the bottom 3rd of his database. Prefers others. Dividend yield of 8%+.
If you are a yield focused investor, of the 3 Dream properties this is his preferred name, because he likes the state of the industrial markets. You are getting a healthy yield. It is very interesting that this one has underperformed while others in the industrial sector have been doing quite well. If you are willing to hold through all of that, he thinks this is good. Valuation is attractive. 8.6% yield.
If you are a yield focused investor, of the 3 Dream properties this is his preferred name, because he likes the state of the industrial markets. You are getting a healthy yield. It is very interesting that this one has underperformed while others in the industrial sector have been doing quite well. If you are willing to hold through all of that, he thinks this is good. Valuation is attractive. 8.6% yield.
He is a little wary of REITs right now. Valuations are excessive. You are paying 15 to 16 times cash flow. There is a lot of risk if interest rates ever start to move higher. The Calgary real estate market is not turning around in a hurry.
He is a little wary of REITs right now. Valuations are excessive. You are paying 15 to 16 times cash flow. There is a lot of risk if interest rates ever start to move higher. The Calgary real estate market is not turning around in a hurry.
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