Very good article as always. A couple of my own points here about TNT: their properties are strategically located in my opinion and likely more easily sellable. Some of their smaller markets don't have the competition you speak of (flight to quality). Their largest Toronto buildings are either immediately next to public transportation or the main highways. They bought back around ~12% of all units and reduced debt in the past year by selling assets at above acquisition prices. The CEO has added millions worth as well which is not the case most elsewhere. Also they use higher cap rates, likely realistic and took big witedowns which Allied hasn't.
Find it interesting that Morguard Corporation is buying Morguard REIT in the past couple days, absent George Armoyan continuing to buy at higher levels, there seems to be a new level of support. I should probably add that. Love how the residential space is out of favor for some of the reasons mentioned and started to re-add some exposure there in addition to my very large position in DRM. Prefer to play Alberta thru DRM on a residential [land sales] development front rather then REITs for the reasons you mentioned. Boardwalk was a good trade for me a couple years ago, sold way too early.
Very good article as always. A couple of my own points here about TNT: their properties are strategically located in my opinion and likely more easily sellable. Some of their smaller markets don't have the competition you speak of (flight to quality). Their largest Toronto buildings are either immediately next to public transportation or the main highways. They bought back around ~12% of all units and reduced debt in the past year by selling assets at above acquisition prices. The CEO has added millions worth as well which is not the case most elsewhere. Also they use higher cap rates, likely realistic and took big witedowns which Allied hasn't.
Find it interesting that Morguard Corporation is buying Morguard REIT in the past couple days, absent George Armoyan continuing to buy at higher levels, there seems to be a new level of support. I should probably add that. Love how the residential space is out of favor for some of the reasons mentioned and started to re-add some exposure there in addition to my very large position in DRM. Prefer to play Alberta thru DRM on a residential [land sales] development front rather then REITs for the reasons you mentioned. Boardwalk was a good trade for me a couple years ago, sold way too early.