In a report released yesterday, Mark Rothschild from Canaccord Genuity maintained a Buy rating on Flagship Communities REIT Investment Trust (MHCUF – Research Report), with a price target of $19.00.
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Mark Rothschild has given his Buy rating due to a combination of factors that highlight the strong financial performance and strategic positioning of Flagship Communities REIT. The company has demonstrated robust cash flow growth, driven by impressive organic growth and a significant increase in same-property net operating income (NOI). This growth is supported by higher rental rates and improved occupancy levels, which have contributed to a 17.7% increase in same-property NOI for the quarter.
Furthermore, the refinancing of a bridge loan at lower interest rates has allowed Flagship to reduce its cost of debt, minimizing exposure to potential interest rate hikes. With no major debt maturities before 2029, the REIT is well-positioned financially. The valuation of Flagship’s units, trading at an implied cap rate of 7.8%, is attractive compared to its peers, and the forecasted increase in funds from operations (FFO) per unit for the coming years further supports the Buy recommendation. Rothschild’s target price aligns with the net asset value estimate, reinforcing the positive outlook for Flagship Communities REIT.
Rothschild covers the Real Estate sector, focusing on stocks such as RioCan Real Estate Investment, Parkit Enterprise, and Dream Office Real Estate Investment. According to TipRanks, Rothschild has an average return of 7.4% and a 62.12% success rate on recommended stocks.
In another report released on March 7, TD Securities also initiated coverage with a Buy rating on the stock with a C$19.00 price target.