Artis REIT (TSX:AX/UN) (ARESF) units have underperformed the real estate sector after its strategic review concluded without announcement of a major transaction, however, investors should realize benefits over time from the company's ongoing initiatives. The company has minimal exposure to stressed sectors (malls and Calgary office) and growing revenues from industrial properties. Activities were disrupted by the COVID-19 epidemic, but earnings and asset value have not been impaired. Peer comparisons suggest the unit price should be at least C$11.
Topics:
- Peer Returns
- 2Q20 Operating Results
- Relative Multiples
- Strategic Initiatives
- Investment Considerations
Background: Artis