SMMCF - Summit Industrial REIT: Record Number Of New Constructions In Toronto Is A Worrisome Trend
Investment Thesis
Summit Industrial Income REIT (SMMCF) (TSX:SMU.UN) delivered a good H1 2019 with mid-single digit same property net operating income growth. The REIT should continue to enjoy growth thanks to strong market fundamentals in Canada. However, we are now seeing record number of constructions in the Greater Toronto Area. This may result in slower rental rate growth in the future. The company is trading at a premium valuation and pays a 4.2%-yielding dividend. Investors may want to seek opportunities elsewhere.
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Recent Developments: H1 2019 Highlights
Summit Industrial had a