CA - BTB REIT: 9% Yielder Hits Our Price Target (Rating Downgrade)

2024-05-24 17:22:12 ET

Summary

• We had a Buy rating on BTB Real Estate Investment Trust as there was a compelling yield and discount to fair value.
• Q1 2024 results were strong across the board and the REIT achieved a 94.5% committed occupancy level.
• We go over why we are downgrading BTB Real Estate Investment Trust to a neutral.

Note: All amounts disclosed are in Canadian Dollars

Just as 2023 was winding down, we switched to a bullish stance on BTB Real Estate Investment Trust (BTBIF, BTB.UN:CA ). While the REIT had its baggage and the office sector downturn was not particularly endearing for a long position, we felt the setup was relatively compelling. Valuation was the primary guide, and the REIT's fundamentals in non-office areas were a close second. While we could not reach a "buy" on most other REITs in Canada, this one got the green light....

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