|Sir Paul says Beep Beep, Beep Beep, Yeah!|
Seeking Alpha recently suggested a 25% upside on the stock and cites these fundamentals:
- Operating revenues up 22% year/year
- Net operating income ("NOI") up 23.3% year/year (same property NOI up 5.5% year/year)
- Funds from operations ("FFO") up 33.2% year/year (up 13.7% per unit year/year)
- FFO payout ratio declined from 81% to 73.2%
Cap REIT owns and operates a portfolio of multi-unit residential rental properties, including apartments, townhomes and manufactured home communities located in and near major urban centres. Cap REIT's concentration on the residential real estate market is aimed at solid year over year income growth in a portfolio with stable occupancy. In addition, Cap REIT mitigates risk through demographic diversification by operating properties across the affordable, mid-tier and luxury sectors as well as through geographic diversification across Canada. As at June 30, 2013, CAPREIT owned interests in 37,998 residential units, comprised of 34,628 residential suites and 14 manufactured home communities ("MHC"), comprising 3,370 land lease sites.
Like most Canadian REITs, Cap REIT has been on a slide since the summer. Right now it sells for less than book value, giving some protection on the downside.