GRT.UN has a significant customer concentration with Magna, representing roughly 26% of its annualized revenue. This is certainly a concentration risk for the company, and against more diversified REITs, it adds additional risk to the name, however, we like MG as a stable, large auto manufacturing business in Canada, and feel that MG's strong history reduces some of this concentration risk.
Granite's debt levels are fairly in line relative to other large Canadian REITs. GRT.UN has a debt-to-equity ratio of ~0.56, and we feel that this is a reasonable debt profile. While it does have some concentration risk, we like GRT.UN for its strong yield, good buyback program in place, and exposure to the industrial space. We would be comfortable with GRT.UN here.