Q: Hello 5i team
Dream Industrial is like a falling knife. What can stop this southward drift?
Thank you
Dream Industrial is like a falling knife. What can stop this southward drift?
Thank you
5i Research Answer:
While DIR.UN is down ~13% since its highs in September, we would not yet call it a falling knife. Recent results were fine but there was nothing overly exciting in them so the stock ticked down. Real estate and REITs continue to be laggards but we like DIR.UN's positioning and think that it can benefit from a declining rate environment. Further rate cuts, increased distributions, acquisitions, and rising occupancy could all help the stock recover.