The Globe and Mail reports in its Thursday, Sept. 28, edition that Raymond James analyst Brad Sturges began coverage on NexLiving Communities with an "outperform" rating on Wednesday. The Globe's David Leeder writes in the Eye On Equities column that Mr. Sturges set a share target of $2.70. Analysts on average target the shares at $3.47. The company is an early stage Canadian multifamily rental real estate asset consolidator. It owns 30 properties, primarily in New Brunswick, which Mr. Sturges notes does not have rent control legislation in place. Mr. Sturges says in a note: "NexLiving has generated average quarterly SP-NOI growth of 10 per cent year-over-year since 2Q22. ... Given NexLiving's exposure to non-rent controlled MFR markets, NexLiving is less reliant on suite turnover to realize higher AMRs [average monthly rents]. In 2023 year-to-date, NexLiving's blended AMR increased around 6 per cent (suite turnover: approximately 10 per cent), which mainly reflected executed lease renewals (tenant retention ratio: 90 per cent), and is estimated to be generally in-line with the company's large-cap Canadian MFR REIT peer range of mid-to-high single-digit AMR growth year-over-year."
© 2023 Canjex Publishing Ltd. All rights reserved.