Topic: How To Invest

Q: Pat: What do you think of Dream Global REIT? Do you think it’s a buy?

Article Excerpt

A: Dream Global REIT, $14.82, symbol DRG.UN on Toronto (Units outstanding: 177.0 million; Market cap: $2.7 billion; www.dream.ca/global), is a Canadian real estate investment trust that invests in commercial properties in Europe, particularly in Germany and the Netherlands. Dream Global has interests in 257 commercial properties for a total of 19.5 million square feet of leasable area. Of these properties, 144 are located in Germany, 111 in the Netherlands, and one each in Vienna, Austria, and Brussels, Belgium. Overall, as of March 31, 2018, the REIT had an 89.2% occupancy rate. It first sold units to the public in August 2011 at $10 each. Through the sale of 27 million units, Dream Global raised $270 million. An issue of unsecured loan certificates, or debentures, helped it raise an additional $140 million. The REIT used the proceeds to acquire a $1 billion portfolio of properties in Germany from Deutsche Post. These buildings are located in major cities and towns, often on a central square…