Latest Stock Buy or Sell? Make More Informed Decisions!
Today, Andrew Moffs commented about whether BEI.UN-T, SUI-N, DIR.UN-T, HOM.UN-T, SLG-N, CRT.UN-T, SGR.UN-T, CSH.UN-T, HPP-N, NXR.UN-T, SMU.UN-T, FCR-T, TCN-T, GRT.UN-T, CAR.UN-T, AP.UN-T, ERE.UN-T, NWH.UN-T, SVI-T, SOT.UN-T, PRV.UN-T are stocks to buy or sell.
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Indeed. In 2022, returns for REITs were down 24% in the US, down 17% in Canada, and down further this year. What's interesting is that private REITs were positive 13% last year. That difference of about 40% has to be explained somehow.
The big question is who's right, the public or the private market? He actually thinks it's both. It all depends on which sector or geography you're talking about. Interest rates have really changed the return expectations. But when the fundamentals are improving, such as in single-family rentals or industrial warehouse, higher rates are just a headwind but not necessarily going to cause diminishing value. It's the inverse for office, and there's a lot to get through in terms of commercial real estate.
He's quite positive, given the setup in the public markets today.
Yes, this setup reminds him of opportunities such as the 2008 financial crisis or during the pandemic, where public real estate markets sold off more between 20-40%. An opportunity to buy great quality companies at a discount to NAV.
In these periods of dislocation, you typically find that the smart money is looking to invest in quality portfolios in the public market. In time, you could see the M&A cycle return, once there's a better outlook and stability in the credit markets.
Invests about 80% in industrial warehouse REITs, with the balance in office and retail. Elevated cost of capital, so it's in secondary markets. Above average leverage, resulting in a higher distribution yield. Limited growth because of cost of capital disadvantage. A yield play, not a growth play, and growth is what you want in this space.
80% of portfolio in Toronto and Montreal. Availability rates are over 16%, yet new builds continue. Sold data centres. Good position on cashflow. Valuation now more compelling. Enticing 9% yield if you're willing to take the risk. Difficult asset class going forward, perhaps better value elsewhere. Many of these stocks look oversold, though he's not willing to place bets today.
Both are quality. Likes both sectors. Likes both, but if he had to choose, he'd pick GRT.UN.
In Quebec and BC, but CAR.UN is mainly a play on Toronto, a fantastic multi-family market, but there is rent control. Great supply/demand fundamentals, but hard to get the cashflow. Outperformed peers, so pullback is understandable.
Industrial warehouse sector continues to do quite well. GRT.UN focuses on Canada, US, and Europe, trading at a nice discount to NAV. Underperformed, not warranted. Concern about oversupply in US, but he thinks they're in a good position.
Both are quality. Likes both sectors. Likes both, but if he had to choose, he'd pick GRT.UN.
In Quebec and BC, but CAR.UN is mainly a play on Toronto, a fantastic multi-family market, but there is rent control. Great supply/demand fundamentals, but hard to get the cashflow. Outperformed peers, so pullback is understandable.
Industrial warehouse sector continues to do quite well. GRT.UN focuses on Canada, US, and Europe, trading at a nice discount to NAV. Underperformed, not warranted. Concern about oversupply in US, but he thinks they're in a good position.
Still positive. Sector's doing well. Revised downward expectations of future growth, because higher cost of debt and growing externally with high home prices would have been punitive. Mismatch between NAV and earnings, should turn next year.
80% industrial, hoping to get to 90% by end of this year. Still owns some office and retail. Needs to sell assets to lower net debt, and then buy better-quality industrial assets. An execution and show-me story. Above-average debt profile, with an above-average dividend yield of 8.8%. Management's done well. Interest rates are a headwind.
