Canaccord Genuity analyst Mark Rothschild maintained a Buy rating on Dream Industrl REIT today and set a price target of C$14.00.
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Mark Rothschild has given his Buy rating due to a combination of factors including Dream Industrial REIT’s strong financial performance and growth potential. The REIT reported a 4.3% year-over-year increase in funds from operations per unit, which aligns with expectations and indicates robust operational health despite some softening in industrial fundamentals and rising vacancies in key markets like Ontario and Quebec.
Additionally, the REIT’s same-property net operating income (NOI) showed significant growth, particularly in Ontario, driven by strong leasing spreads and rental rate increases. The REIT also achieved a notable improvement in occupancy rates, supported by substantial leasing activity and a promising leasing pipeline. Rothschild’s valuation approach, using a cap rate of 5.60%, suggests that Dream Industrial’s units are trading at a discount to their net asset value, reinforcing the Buy recommendation with an implied return potential of 22.9%.
In another report released on October 30, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a C$13.50 price target.