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Canadian Apartment Properties Real Estate Investment Trust (CAR.UN $38.57)
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Minto Apartment Real Estate Investment Trust (MI.UN $13.73)
Q: Understandably Real Estate cos. are not prominent in the minds of investors these days and in Canada they are under alot of pressure but am wondering if CAR.UN is a screaming BUY for one who is willing to wait through a couple more years of AI craze?
It shows CAR.UN book Value at $56.00 per share whilst price today is $39.00. Am already a holder of Minto which i earlier saw Book Value of $29.00 but yr site shows a P/B value of 1.06 so not sure about that number.
These companies may carry alot of debt but wondering yr thoughts on the opportunity here on these reits and the relative risks of each as a 3 year investment?
It shows CAR.UN book Value at $56.00 per share whilst price today is $39.00. Am already a holder of Minto which i earlier saw Book Value of $29.00 but yr site shows a P/B value of 1.06 so not sure about that number.
These companies may carry alot of debt but wondering yr thoughts on the opportunity here on these reits and the relative risks of each as a 3 year investment?
5i Research Answer:
The REIT sector will likely look at lot better when stocks go into correction. Lower interest rates should help, of course. We had some comments on CAR.UN yesterday. Bloomberg also shows $29.39 for book value for MI.UN. The market data page comes from a different source. In the sector, price/book is not always the best metric. Some assets will be understated on the books, some overstated. MI.UN is quite small but has performed relatively well. Its dividend usually gets a small bump each year. At 14X cash flow, it is a bit expensive, considering its size risk. But for patient income investors, we think both of these should provide reasonably returns over the next three years.