Canaccord Genuity analyst Mark Rothschild maintained a Buy rating on Automotive Properties today and set a price target of C$13.00.
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Mark Rothschild has given his Buy rating due to a combination of factors that highlight the strong performance and strategic growth of Automotive Properties REIT. The company reported robust cash flow growth, supported by stable operating fundamentals, and announced significant acquisitions totaling $93.5 million, which are expected to be accretive and support further cash flow growth over the next year. Additionally, the REIT increased its monthly distribution by 2.2%, reflecting confidence in its financial stability and growth prospects.
Furthermore, Automotive Properties REIT demonstrated a 6.3% increase in funds from operations per unit year-over-year, aligning with estimates and showcasing effective management of its property portfolio. The acquisition of new properties, including automotive dealerships in Quebec and a Rivian dealership in Orlando, indicates a strategic expansion plan that is expected to drive future growth. The REIT’s valuation, trading at a discount compared to its peers, combined with a favorable cap rate and NAV estimate, supports the Buy recommendation as it offers an attractive investment opportunity with a solid implied return.