Investment Thesis
Investors Real Estate Trust (IRET) delivered a good Q2 2019, thanks to robust demand in its major markets. Looking forward, the REIT should continue to benefit from favorable demographic trends, and strong market fundamentals in its major markets. The company also has value-add initiatives to grow its revenue and improve its operating efficiency. However, it still has a leveraged balance sheet. IRET currently pays a 3.9%-yielding dividend, and its shares are trading at a discount to its peers. While we like its growth outlook and discounted valuation, we are not comfortable