A Canadian REIT for a Growing eCommerce Economy

Granite Real Estate Investment Trust (TSX:GRT.UN) units have appreciated 11% since Capital Ideas wrote about the REIT about six weeks ago

Capital Ideas Media | August 19, 2020 | SmallCapPower:  Last week, we wrote about WPT Industrial Real Estate Investment Trust (TSX:WIR.UN), an industrial REIT to play a growing eCommerce economy that has been given a boost by the COVID-19 pandemic.

(Originally published on Capital Ideas Media on June 30, 2020)

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[Editor’s Note: Units of Granite REIT have appreciated 11% since Capital Ideas wrote about the REIT about six weeks ago.]

Today, we take a look at another Canadian industrial-type REIT: Granite Real Estate Investment Trust (TSX:GRT.UN). Granite owns more than 90 logistics, warehouse and industrial properties in North America and Europe.

Industrial Alliance Securities analyst Frederic Blondeau recently raised his target price on Granite REIT to $79 from $75, while maintaining a “Buy” rating on the units, after the Company announced an agreement to acquire eight U.S. income-producing properties for $332 million.

Mr. Blondeau noted that Granite, as at May 26, was able to collect 98% of rents due for the month of May. And, 99% of April’s rents had also been collected.

Granite REIT’s current liquidity position is $1.1 billion, and while the Industrial Alliance Securities analyst doesn’t expect the REIT to announce new acquisitions during the remainder of 2020, he does expect Granite to acquire $800 million in property in 2021.

GRT.UN has a current yield of 3.8%.

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