In a report released yesterday, Mark Rothschild from Canaccord Genuity maintained a Buy rating on PRO Real Estate Investment (PRV.UN – Research Report), with a price target of C$6.00.
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Mark Rothschild has given his Buy rating due to a combination of factors that highlight PRO Real Estate Investment’s strong performance and growth potential. The company reported a solid quarter with a notable 5% growth in same-property Net Operating Income (NOI), driven by impressive leasing spreads. Despite some short-term impacts from asset sales, the focus on industrial properties is expected to sustain organic growth at a rate of over 5% in the coming years.
Additionally, the completion of the asset sale program is anticipated to enhance Funds From Operations (FFO) per unit growth. The valuation of PRO REIT’s portfolio, utilizing a cap rate of 6.75%, supports a Net Asset Value (NAV) per unit estimate of $7.81, with a target price set at $6.00, reflecting a 15% discount. The recent acquisition of industrial assets in Winnipeg further strengthens the company’s industrial exposure and is expected to be accretive to Adjusted Funds From Operations (AFFO), providing additional growth opportunities.
Rothschild covers the Real Estate sector, focusing on stocks such as RioCan Real Estate Investment, Parkit Enterprise, and Flagship Communities REIT Investment Trust. According to TipRanks, Rothschild has an average return of 7.3% and a 62.92% success rate on recommended stocks.