skip to content
  1. Home
  2. >
  3. Questions
  4. >
  5. NET.UN: I am looking at increasing my real estate exposure. [Canadian Net Real Estate Investment Trus]
You can view 2 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: I am looking at increasing my real estate exposure. What are your thoughts on this company? What are your top suggestions in the real estate sector?

Asked by Jacqueline on August 23, 2021
5i Research Answer:

We would continue to recommend TCN, CAR.UN, GRT.UN and DIR.UN.

NET.UN is quite small at $150M market cap. The revenue base is quite low, but it is growing and had a good 2Q. Payout ratio is 50%. It collected 100% of rents last quarter. It owns properties along highways, so has some recovery potential post-covid. We would consider it 'OK' but prefer our income securities to be larger companies with a larger revenue base, for some degree of safety.