- Granite Real Estate Investment Trust (GRT.UN)
- Dream Industrial Real Estate Investment Trust (DIR.UN)
Q: If only one of the above Industrial REITs could be owned, which one would you choose and why? Thanks for your insight.
5i Research Answer:
Both are similar in size and have similar forward expected growth rates. GRT.UN has a slightly higher 10-year total return than DIR.UN and net profit margin, however, DIR.UN has a marginally better free cash flow yield. Both are valued quite similarly, but DIR.UN offers a higher yield of 5.4% vs. GRT.UN at 4.4%. For potential upside, we give DIR.UN the slight edge due to its smaller size, and slightly better forward growth estimates, however, for a more balanced approach, we feel that GRT.UN has proven itself to be a robust company.