CMLEF - Cominar REIT: Improved Outlook But Uncertainty Still Exists
Investment Thesis
Cominar REIT (CMLEF) (TSX:CUF.UN) delivered three consecutive quarters of positive same property net operating income growth. Looking forward, the company should be able to benefit from a strong economy in Quebec thanks to its concentration in the province. However, we remain cautious as Cominar is still in the midst of transforming its portfolio and improving its balance sheet. Its planned dispositions and about C$1 billion of unsecured debentures due before the end of 2020 adds uncertainties to the REIT as well. Its shares are currently fairly valued. We believe investors should