The Globe and Mail reports in its Wednesday edition that Industrial Alliance Securities analyst Brad Sturges says industrial and multifamily property REITs are now displaying "strong" underlying fundamentals. The Globe's David Leeder writes that Mr. Sturges believes both sectors will benefit from tight lending conditions, strong tenant demand and accelerating rent growth prospects in 2019.
Mr. Sturges says in a note: "For the North American industrial property sector in 2019, continued e-commerce growth underscores the increasing need for modern distribution and logistics industrial space. Vacancy rates for industrial space across many of the Canadian property markets are low, placing greater upward pressure on rental rates. Including traditional industrial leasing demand from the North American manufacturing sector, other burgeoning industries such as cannabis, data centres, and cryptocurrency mining have added additional tenant demand pressures to already tight leasing conditions across many major North American industrial property markets." Mr. Sturges rates American Hotel Income Properties REIT "hold," with a $5.50 (U.S.) share target. He rates
Cominar REIT "buy," with a $13.25 (Canadian) share target.
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