Q: what am i buying when i look at these 2 reits.. slate office reit seams compeling book value good buildings ?location tenants leases ap.un looks like a solid upgrade as a investor with a lack of information and iq. can you make it clear i understand the interest rates office space just thought their might be an opportunity werea company reit is punished with mutual funds etfsselling all office reits guilty by assocition.can you please give your most under appreciated stock in mining energy reits growth thanks!
5i Research Answer:
SOT is focused on commercial real estate in North America and Europe. Recent results had a bit of a miss and the near term uncertainty for commercial real estate is higher in this environment. It is trading well below book value, but book value in this space is probably a bit of a moving target right now as it is likely difficult to sell commercial space. We think its a tough one. There could be a contrarian type of play here but it is small, momentum is not great and there are a lot of headwinds facing a name like this.
Our comments on AP would generally be the same but we would prefer AP largely for its size and a potential catalyst with the data-center sale progressing.