Q: Hello 5i,
With the commercial vacancies, lenders just walking away from commercial properties abandoning payments, with working from home becoming the norm and with commercial property tenants and owners defaulting in payments, is dir.un still an investable REIT or should I take my small prfit and run? I have a 5-10 year outlook, am an older value investor enjoying the dividends. If there is a suggestion to sell would you suggest an alternative please
Stanley
With the commercial vacancies, lenders just walking away from commercial properties abandoning payments, with working from home becoming the norm and with commercial property tenants and owners defaulting in payments, is dir.un still an investable REIT or should I take my small prfit and run? I have a 5-10 year outlook, am an older value investor enjoying the dividends. If there is a suggestion to sell would you suggest an alternative please
Stanley
5i Research Answer:
In its Q1 2023, FFO per unit grew 13% compared to the same period last year. In addition, DIR.UN is trading at a discount to NAV of $17.
DIR.UN’s portfolio focuses on high-quality industrial properties. As a result, the occupancy level is still solid, with the occupancy rate in line with last year, around 98.6%, which indicates the stickiness in the company’s portfolio.
DIR.UN has a track record of acquiring and managing properties to increase cash flow per unit. We think going forward the investment thesis is still intact. We would be comfortable holding this name.