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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: I am hearing investors piling into commercial real estate. I am looking for office real estate REITs in Canada that are beaten down, will not go down but have a potential price appreciation when environment improves. I am more looking for capital appreciation and not necessarily dividend.
5i Research Answer:
We would recommend D.UN and AP.UN. Both stock's along with office REITs as a whole have been hit hard due to the secular tailwinds from the pandemic with the increasing number of people working from home. As interest rates come down over time and stable out in the near future, these two stocks should be able to manage debt loads better and provide investors with capital appreciation.