Topic: How To Invest

Q: Pat: May I please have your opinion on Pure Industrial REIT? Thank you very much.

Article Excerpt

A: Pure Industrial REIT, $5.41, symbol AAR.UN on Toronto (Units outstanding: 243.1 million; Market cap: $1.3 billion; www.piret.ca), owns industrial properties across Canada. As of September 30, 2016, the trust held 166 buildings for a total of 17.8 million square feet of leasable space. Pure has 44% of its leasable area in Ontario, 18% in Alberta, 18% in the U.S., 14% in B.C., and 6% in the rest of Canada. The trust’s largest tenants (by leased square footage) are: FedEx, TransForce, Container World, Best Buy Canada, HBC, Tervita, Calyx Transportation Group, Acklands-Grainger, Advance Engineered Products and PFB Corporation. Those 10 tenants account for 50.1% of Pure’s revenue and 31.1% of its leasable square footage. They have an average lease term of 9.0 years. In the three months ended September 30, 2016, Pure’s revenue rose 7.4%, to $46.0 million from $42.8 million a year earlier. The increase was mostly due to acquisitions. Cash flow gained 7.6%, to $20.7 million from $19.2 million. Cash flow…

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