In a report released yesterday, Mark Rothschild from Canaccord Genuity maintained a Buy rating on Choice Properties Real Estate Investment, with a price target of C$16.25.
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Mark Rothschild has given his Buy rating due to a combination of factors that highlight the strong performance and potential of Choice Properties Real Estate Investment. The company has demonstrated solid financial results, with a notable 3.9% year-over-year increase in funds from operations (FFO) per unit, driven by robust leasing spreads and reduced general and administrative expenses. This growth, alongside a healthy operating performance, has allowed Choice Properties to outperform its retail peers and the broader REIT index.
Furthermore, the company has shown steady internal growth, particularly in its retail portfolio, which accounts for a significant portion of its same-property net operating income (NOI). The retail segment has benefited from higher rental rates and strong leasing spreads, contributing to a 1.7% increase in same-property NOI. Additionally, the industrial portfolio, despite some challenges, has achieved impressive leasing spreads on renewals. These factors, combined with a stable occupancy rate and manageable lease expiries, support Rothschild’s positive outlook and the decision to raise the target price, reinforcing the Buy rating.