Topic: How To Invest

Power Growth Investor Hotline – Friday, December 16, 2022

Article Excerpt

DREAM OFFICE REIT, $14.90, is still a buy. The REIT (symbol D.UN on Toronto), sold 138 properties in 2016 as part of a new strategic plan. Due to those sales, in July 2017, Dream cut its monthly distribution to $0.0833 a unit from $0.125. The new annual rate of $1.00 yields a high 6.7%. Dream now has 27 office properties, including two under development. The downtown Toronto market supplies about 79% of the REIT’s rental revenue and accounts for 82% of the portfolio’s value. Its overall occupancy rate as of September 30, 2022, was 85.7%—88.9% at its downtown Toronto properties and 79.7% in other markets. In the three months ended September 30, 2022, Dream’s revenue fell 2.2%, to $26.7 million from $27.3 million a year earlier. The company sold two properties. However, Dream secured new leases in downtown Toronto at an average initial rent of $35.73 a square foot, 34.2% higher than the previous average. Cash flow was $19.9 million, down 14.2% from…