PPRQF - Choice Properties REIT: A Strong Outlook Post-Q2 Results But There Are Better Choices

2024-07-20 09:24:27 ET

Summary

• Choice Properties REIT reported a strong Q2'24 in line with expectations.
• The REIT renewed the vast majority of next year's Loblaw lease expiries at higher net rents per square foot and achieved double-digit retail lease renewal rent spreads this quarter.
• There's a large embedded rent MTM growth opportunity within its current portfolio, which should support NOI growth over the next few years.
• While the outlook is strong post-Q2 results, the valuation is at the high-end of the peer group.
• My preference would be for Slate Grocery, which trades at a wide discount to Choice despite having a very similar tenant profile.

Please note all $ figures in , not , unless otherwise stated.

Introduction

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