Q: My discount broker commented that DIR.UN "is running out of steam" and that the largest shareholder sold 800,000 shares last week at $13.02. It is significant to note that the said shareholder now owns no units of the REIT.
Recently you indicated that this REIT is one of your top 5 favourites.
Can you please comment whether this is still your favourite REIT ? Is the insider selling significant? I will appreciate further if it is a hold, sell or a buy.
Thanks
Recently you indicated that this REIT is one of your top 5 favourites.
Can you please comment whether this is still your favourite REIT ? Is the insider selling significant? I will appreciate further if it is a hold, sell or a buy.
Thanks
5i Research Answer:
Micheal Cooper (trustee) did sell 800,000 units. It is a fairly significant amount amongst total insider holdings. But he was not the largest shareholder. 14 funds show larger unit positions. DIR certainly has been a strong outperformer in the sector. It has been buying back units, and its growth is superior to most peers. But it remains cheap at 12X cash flow and the industrial sector continues to be our preferred sector for REITs. We would continue to endorse it as one of our favourites. We might not expect it to outperform to the same degree (in the past year it is up 25% and the sector is down 2%), but we continue to see it as attractive for income and some growth. It has 12 analysts, and all are still at BUY today as well.