Review of Dream Industrial Real Estate Investment Trust

DEC 07, 2023 - In the third quarter, results were nothing to complain about with gains in funds from operations and net operating income. DIR.UN has a good valuation, especially when considering how weak REIT’s have performed over the past year. Operating in the industrial area represents a higher growth segment for REITs but outlook is slightly hindered by the expectation of continued high interest rates. We have maintained the rating at a B+ and it continues to be one of our favourite REITs.

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Dream Industrial Real Estate Investment Trust (DIR.UN)

Q: I don’t have any REIT exposure at the moment and am looking at DIR.UN. Although the yield is good and revenue is growing fast, it doesn’t appear to have a great track record on growing either earnings or the distribution. Forecast EPS is expected to rise significantly from current levels, however the ’24 and ’25 forecasts are still only about 1/3 of what was earned in 2021/22. The payout appears to have not increased since 2013(!) What needs to change for this REIT to restore earnings to past levels and to grow the distribution? Recent high rates I expect were/are part of the problem but likely are not the entire story.

Read Answer Asked by Paul on June 24, 2024

Q: Your thoughts on Smart Centres please?
Will this and another REITS do well as rates move lower? Nice Yield.
Thanks

Read Answer Asked by Carlo on June 19, 2024

Q: I did really well buying oil stocks when oil tanked 4 years ago, and holding during the recovery. What beaten up sector do you feel has great recovery potential like this currently? Would REIT's qualify since rate cuts appear to be coming soon, or are you not as confident in the recovery due to vacancy's & recession possibility? Thx

Read Answer Asked by Adam on May 23, 2024