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  5. CAR.UN: Interested in learning more about this REIT. [Canadian Apartment Properties Real Estate Investment Trust]
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Investment Q&A

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Q: Interested in learning more about this REIT. If I were to invest in any one REIT in Canada, how does NET-UN stack up?

Asked by Eugene on July 20, 2021
5i Research Answer:

NET.UN's portfolio currently comprises 74 income-producing commercial properties located in the provinces of Québec, Ontario, and Nova Scotia. NET.un has been able to grow to its assets, top-line and bottom-line results consistently, almost doubling most metrics within the past two years. It has done so by issuing shares periodically to build its asset base. Margins have been trending slightly downwards and the offerings have resulted in very diluted earnings. Distributions have also been growing at a comfortable pace. 

We would prefer CAR.UN for the sector. While it is expensive for the sector, we view it as solid and very well managed. It should be able to grow a little faster in a post-pandemic world. Payout ratio is low as well, which should allow for more distribution increases over time.