Related posts

5 Best Industrial REITs for CanadiansTSX, Amazon rallyLate rally ends choppy day
Investor Insights

This summary was created by AI, based on 10 opinions in the last 12 months.

Dream Industrial REIT (DIR.UN-T) is a strong investment option in the industrial REIT sector, with high-quality industrial properties and consistent cash flow growth. The company has performed well in large cities and is well-positioned to benefit from the dynamics of e-commerce, onshoring, and reshoring. Its shares are currently trading at a wide discount to the private market value, making it an attractive valuation for potential investors.

Consensus
Positive
Valuation
Undervalued
Similar
SRU.UN-T, Slate Retail REIT (SRU.UN-T)
TOP PICK

Cheapest play on industrial anywhere. 2/3 portfolio in Canada, 1/3 in Europe. Investment in the US. Likes it because spaces are really close to the population. Big gap of 46% between in-place rents and market rents. Robust internal  growth of 9-10% annually, with 20% discount to NAV. Yield is 5.4%.

(Analysts’ price target is $16.48)
REAL ESTATE
PARTIAL BUY

Stock very interest rate sensitive (higher debt loads are expensive). But, could be a good time to buy given share price. Would recommend a small position. 

REAL ESTATE
BUY

Industrial REIT sector very attractive right now. Doesn't own shares, but good sector. eCommerce and tight market driving business ahead. If interest rates fall, will drive shares higher. 

REAL ESTATE
PAST TOP PICK
(A Top Pick Nov 29/22, Up 7%)

Wide discount to private market value. Thinks it will have the highest cashflow growth (estimated at 9%) of any REIT globally. Share price worth north of $18. Will benefit from dynamics of e-commerce, onshoring, reshoring.

REAL ESTATE
DON'T BUY
DIR.UN vs. GRT.UN

Prefers GRT.UN, a better investment than DIR.UN. Steadier assets. Backed more by management. Only weakness is that US properties are suffering a bit. 

DIR.UN has good numbers, but issued equity in September, instead of selling assets, to get leverage down. Motivated by externally managed contract remuneration based on assets under management. Stock fell. Can't support management on any level. Supply's coming on, so the story's getting tired.

REAL ESTATE
TOP PICK

Europe and Canada, with major focus on Toronto and Montreal, which are seeing market rent growth of 40-50%. Strong internal cashflow growth, discount to NAV of $17-18. Quality. Yield is 5.40%.

(Analysts’ price target is $17.08)
REAL ESTATE
COMMENT

Industrial REIT's are still a good investment. Dream has done well with its holdings in large cities. REIT's are under pressure with rising interest rates but it has been able to pass along some of this through increased rents.

REAL ESTATE
BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

In the Q2-2023, DIR.UN’s FFO per unit grew 14% compared to the same period last year to $0.25 per share. In addition, NAV grew 20% to $16.97 per unit compared to $16.64 last year, DIR.UN is trading at a wide discount to NAV. DIR.UN’s portfolio focuses on high-quality industrial properties. As a result, the occupancy level is consistent over the years, with the occupancy rate slightly down to 97.6% compared to last year of 98.6%, which indicates the stickiness in the company’s portfolio. DIR.UN has a track record of acquiring and managing properties to increase cash flow per unit, and generate consistent FFO per unit growth, also trading at a discount to NAV is an attractive valuation. We would be quite comfortable holding this name.
Unlock Premium - Try 5i Free

REAL ESTATE
HOLD
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

In its Q1 2023, FFO per unit grew 13% compared to the same period last year. In addition, DIR.UN is trading at a discount to NAV of $17.

DIR.UN’s portfolio focuses on high-quality industrial properties. As a result, the occupancy level is still solid, with the occupancy rate in line with last year, around 98.6%, which indicates the stickiness in the company’s portfolio.

DIR.UN has a track record of acquiring and managing properties to increase cash flow per unit. We think going forward the investment thesis is still intact. We would be comfortable holding this name.
Unlock Premium - Try 5i Free

REAL ESTATE
BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research.

EPS was ($0.06) and revenue was $81.46M for the recent quarter. Diluted funds from operations per unit was $0.25, an increase of 13.3%, and net rental income rose by 24.7%. Its net loss was largely driven by a fair value adjustment to financial instruments of ($64.6M) and other expenses of $43.3M. Since the previous quarter, DIR.UN has signed 0.9 million square feet of new leases and renewals at an average spread of 41% over prior or expiring rents. 

These were decent numbers, although, Dream Office REIT (D.UN) recently announced an agreement to sell 12.5M units of DIR.UN (roughly 50% of Dream Office's holdings of DIR) at a price of $14.20 per DIR unit. Dream Office then intends to use these proceeds to purchase 12.5M units of its outstanding D.UN units at a price of $15.50 per unit. For DIR.UN, this caused its price to fall to $14.20, the sale price of units, and for D.UN, this caused its price to jump by 18% to ~$14.9, slightly below the purchase price of $15.50. Dream Office has made this move as it mentioned the NAV per unit of D.UN as of March 31, 2023 was $31.50, and this move would increase its NAV to $35.85. Management is taking advantage of the steep discount to NAV on its D.UN units by selling some of its DIR.UN holdings.  

We would be OK buying here, given that the sale price was not at too significant of a discount to its recent close, and management is looking to capitalize on DIR.UN's success and buy its D.UN units at a steep discount.
Unlock Premium - Try 5i Free

REAL ESTATE
TOP PICK

Great mix of value and growth. Industrial sector is benefiting from so many secular forces like on-shoring, re-shoring, inventory restocking, e-commerce retail sales increasing. 62% portfolio in Canada, 38% in Europe, part in the US. 21% discount to private market value. Expects 10% earnings growth. Yield is 4.85%.

(Analysts’ price target is $16.89)
REAL ESTATE
PAST TOP PICK
(A Top Pick Jan 31/22, Down 7%)

It is the cheapest industrial warehouse stock so he would still buy. Its ownership of places in Europe caused the stock to drop but that situation is improving. The value of its real estate markets has increased and there is an opportunity for increased rent growth of 40 to 70% in Toronto and Montreal. Trades at a wide discount to NAV

REAL ESTATE
TOP PICK

They are taking over (with a partner) Summit Industrial REIT currently. He values shares at $18, though it's now trading at $12. That takeover partner is a large, foreign and sophisticated entity that saw opportunity and value in both Dream and Summit, so he's quite bullish on Dream. (Analysts’ price target is $15.18)

REAL ESTATE
BUY
If cap rates are moving higher and hurting valuations, it's a buying opportunity for the industrial REIT sector. Space is still undervalued compared to cashflows and potential growth next 2-3 years. We're running out of public industrial REITs to invest in, and DIR.UN will benefit as SMU.UN gets taken out.
REAL ESTATE
BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Industrial REIT exposure. Strong tailwinds and demographic benefit. Solid debt servicing capabilities. North American and European exposure.
REAL ESTATE
Showing 1 to 15 of 96 entries

Dream Industrial REIT(DIR.UN-T) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 5

Neutral - Hold Signals / Votes : 1

Bearish - Sell Signals / Votes : 1

Total Signals / Votes : 7

Stockchase rating for Dream Industrial 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.

Dream Industrial REIT(DIR.UN-T) Frequently Asked Questions

What is Dream Industrial REIT stock symbol?

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

Is Dream Industrial REIT a buy or a sell?

In the last year, 7 stock analysts published opinions about DIR.UN-T. 5 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 Dream Industrial REIT.

Is Dream Industrial REIT a good investment or a top pick?

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

Why is Dream Industrial 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 Dream Industrial REIT worth watching?

7 stock analysts on Stockchase covered Dream Industrial REIT In the last year. It is a trending stock that is worth watching.

What is Dream Industrial REIT stock price?

On 2024-03-28, Dream Industrial REIT (DIR.UN-T) stock closed at a price of $13.13.