Review of Dream Industrial Real Estate Investment Trust

DEC 07, 2023 - In the third quarter, results were nothing to complain about with gains in funds from operations and net operating income. DIR.UN has a good valuation, especially when considering how weak REIT’s have performed over the past year. Operating in the industrial area represents a higher growth segment for REITs but outlook is slightly hindered by the expectation of continued high interest rates. We have maintained the rating at a B+ and it continues to be one of our favourite REITs.

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Q: Hi with interest rates beginning to edge lower what would be the sectors most likely to benefit? Could you give me a couple of your favourite picks for each of those sectors. Would you be edging in, fully buying in, or hold off for a possible October correction? With the likely chaotic return of Trump to the Presidency would the Renewable stocks such as BEPC be at risk of correcting under this scenario? He does not like windmills much... Thank you for your service and deduct credits as you see fit.

Read Answer Asked by Harry on July 18, 2024

Q: Hello,

Do you expect rates to fare better over the next 3-5 years as rates gradually normalize?

Can you give 1-2 names that are liked in the residential, commercial and industrial spaces?

Thanks!

Read Answer Asked by Michael on July 16, 2024

Dream Industrial Real Estate Investment Trust (DIR.UN)

Q: I don’t have any REIT exposure at the moment and am looking at DIR.UN. Although the yield is good and revenue is growing fast, it doesn’t appear to have a great track record on growing either earnings or the distribution. Forecast EPS is expected to rise significantly from current levels, however the ’24 and ’25 forecasts are still only about 1/3 of what was earned in 2021/22. The payout appears to have not increased since 2013(!) What needs to change for this REIT to restore earnings to past levels and to grow the distribution? Recent high rates I expect were/are part of the problem but likely are not the entire story.

Read Answer Asked by Paul on June 24, 2024