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Canadian Apartment Properties Real Estate Investment Trust (CAR.UN)
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InterRent Real Estate Investment Trust (IIP.UN)
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Marwest Apartment Real Estate Investment (MAR.UN)
Q: Found this tiny REIT that has a portfolio of multi-family properties in Winnipeg. They trade at a significant discount to NAV; however, the debt is high and it is VERY illiquid primarily because there are a very low number of equity units O/S.
The Company is externally managed with a management agreement that pays fairly high fees.
Is this one worth the risk?
The Company is externally managed with a management agreement that pays fairly high fees.
Is this one worth the risk?
5i Research Answer:
We would say it is not worth it for the reasons mentioned. Portfolio size is an important factor for REITs and MAR.UN's portfolio is very small along with being undiversified due to it's focus in Winnipeg. Two other options for residential/apartment REITs that we like are CAR.UN and IIP.UN.