PLDGP - Granite REIT: Industrial Powerhouse Gets To The Right Multiple
2024-05-21 15:05:11 ET
Summary
- Granite REIT's Q1-2024 report shows positive growth in revenue, NOI, and FFO.
- US side occupancy levels are at the low end of what we have seen for the last decade.
- We go over why Granite is about two years ahead of both Prologis and Rexford Industrial in terms of valuation compression.
Note: All amounts referenced are in Canadian Dollars
One of the more powerful forces in the market is the change in valuation. Valuation compression or expansion makes up the bulk of the underperformance or outperformance of profitable stocks. Investors tend to dump poorly performing stocks even though they are due to do well if valuation just expands modestly. Investors also keep getting hooked in on "growth" and then to forget how poor returns are when you get valuation compression. The preamble is necessary for our protagonist for today, Granite REIT (GRP.UN) ( GRT.UN:CA ). We have covered this industrial REIT several times in the past and generally, outside the depth of COVID-19, we have held a neutral view....
Granite REIT: Industrial Powerhouse Gets To The Right Multiple