In a report released yesterday, Mark Rothschild from Canaccord Genuity maintained a Buy rating on Flagship Communities REIT Investment Trust, with a price target of $21.25.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Mark Rothschild has given his Buy rating due to a combination of factors that highlight Flagship Communities REIT’s strong financial performance and growth potential. The company has recently announced a 5.4% increase in its monthly distribution, marking the fifth consecutive annual increase, which underscores its robust cash flow growth and promising future prospects. This increase elevates the distribution yield to 3.5%, reflecting the company’s solid fundamentals.
Flagship Communities REIT has demonstrated impressive same-property NOI growth, averaging 15% over the past year, significantly outperforming its US peers. The company’s AFFO per unit is projected to grow by 40% from 2021 to 2025, with an expected increase to $1.33 in 2026, maintaining a low payout ratio of 49%. Additionally, Flagship’s units are trading at a favorable implied cap rate of 7.4% and a discount to NAV of 13.1%, which is attractive compared to its US MHC peers. These factors collectively support the Buy rating, as they indicate strong operational performance and valuation advantages.