The future is bright for Dream Office

Article Excerpt

Despite the ongoing impact of COVID-19, we still like the outlook for this REIT. In fact, it appears that tours of Dream’s properties by prospective tenants have returned to pre-pandemic levels; as another good sign, sublet listings within the trust’s portfolio are now below pre-pandemic levels. Most important, Dream’s leasing rates continue to hold up, and it has not seen any significant rise in tenants changing their space needs as a result of remote-work policies. This Power Buy is trading below its March 2020 high of $37, but we think it’s now poised to regain that pre-COVID-19 level and rise even higher for our subscribers. DREAM OFFICE REIT, $23.90, is a Power Buy. The REIT (Toronto symbol D.UN; TSINetwork Rating: Extra Risk) (www.dream.ca/office; Units outstanding: 50.7 million; Market cap: $1.3 billion; Dividend yield: 4.2%) launched a three-year strategic initiative in 2016. As part of that plan, it sold roughly 138 properties for $3.7 billion. It used $1.8 billion of the proceeds to pay down its high-interest debt. It also…