Canadian Apartment REIT – New Issue provides buying opportunity

Announced a $300 million new issue at $49 per share representing a 3.9% discount from yesterday’s closing price

While the new issue was sold out quickly, the shares are still trading at $49.46 or almost 3%  below yesterday’s close

Concurrently with the new issue announcement, the company announced the acquisition of $182 million of Manufactured Community Housing units.

The acquired properties are located in Atlantic Canada, Ontario and Alberta with an overall occupancy of 95.4%

This purchase is expected to be immediately accretive to their NFFO per unit.

This high quality apartment REIT’s portfolio still has a high concentration in the GTA, the most favourable apartment market in Canada.

Recommendation

Use the current price weakness to add to your positions.

 

 

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