Mark Rothschild, an analyst from Canaccord Genuity, maintained the Buy rating on Dream Industrl REIT (DIR.UN – Research Report). The associated price target remains the same with C$14.00.
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Mark Rothschild has given his Buy rating due to a combination of factors that highlight Dream Industrial REIT’s strong financial performance and attractive valuation. The REIT reported a 5.8% increase in funds from operations (FFO) per unit year-over-year, driven by robust leasing spreads and a 3.1% growth in same-property net operating income (NOI). Despite a rise in vacancy rates, the REIT’s rent uplifts on renewals have contributed to a healthy operating performance.
Additionally, Dream Industrial REIT is trading at an implied cap rate of 6.8%, which represents a significant discount to the analyst’s net asset value (NAV) estimate. This discount is more favorable compared to its Canadian industrial REIT peers. Furthermore, the REIT’s cash flow multiple is lower than the average of its peers, suggesting potential for appreciation. These factors, combined with management’s expectations for modest occupancy improvements, underpin Rothschild’s positive outlook and Buy rating.
Rothschild covers the Real Estate sector, focusing on stocks such as RioCan Real Estate Investment, Parkit Enterprise, and Choice Properties Real Estate Investment. According to TipRanks, Rothschild has an average return of 7.6% and a 63.96% success rate on recommended stocks.