‘Yield sector relief’ ahead predicts BMO chief investment strategist

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Daily roundup of research and analysis from The Globe and Mail’s market strategist Scott Barlow

Scotiabank analyst Mario Saric thinks a domestic economic acceleration will spur private real estate deals and then unlock value for REITs,

“We have cited higher private CRE transaction volumes as an important catalyst for REIT sentiment given that the current 25% average trading discount to our NAV has historically been a good entry point.

Mr. Saric has “outperform” ratings on Canadian Apartment Properties REIT, Interrent REIT, Allied Properties REIT, Brookfield Corp., Crombie REIT and Brookfield Asset Management.“Under the backdrop of the first Bank of Canada rate cut and moderating long-term interest rates, we believe that the core defensive yield sectors, like Communication Services, Real Estate, and Utilities should be doing much better.

 

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