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Allied Properties Real Estate Investment Trust (AP.UN)
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Dream Office Real Estate Investment Trust (D.UN)
Q: You recently provided me with your top two picks in the industrial REIT space- thank you. Could you please do the same for the CDN office REIT space. Again looking for a focus on share price appreciation over dividend yield. Thank you.
5i Research Answer:
There are only a few 'pure-play' office REITs in Canada and for a focus on capital appreciation and yield, we like D.UN, and AP.UN. Both have been hit hard by the rising cost of debt over the past few years as well as the secular trend of employees working from home. We feel that if interest rates stagnate or decline, these names can see their share prices increase as their debt loads become more manageable.