National Bank Previews Real Estate Investment Trusts' Q1

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National Bank Previews Real Estate Investment Trusts' Q1

, MT Newswires - 1:58 PM ET 4/14/2025 default

01:58 PM EDT, 04/14/2025 (MT Newswires) -- National Bank has cut its target prices on real estate investment trusts (REITs) by 9% on average as economic turmoil weighs on growth outlooks while policy decisions and geopolitics are driving long bond yields higher (a 50-bps gap exists today vs. NBF forecast while unsecured spreads have widened by 40 bps).

Analyst Matt Kornak is also prioritizing more defensive names, with solid balance sheet metrics and / or attractive enough valuations. He is moving Automotive Properties REIT (APR-UN.TO), Boardwalk REIT (BEI-UN.TO), InterRent REIT (IIP-UN.TO), Nexus Industrial REIT (NXR-UN.TO) and RioCan REIT (REI-UN.TO) to Sector Perform and Choice Properties REIT (CHP-UN.TO) to Outperform on the ratings front.

Asset class pecking order has been shuffled. By total return Kornak favours seniors (28%), apartments (25%), industrial (21%), retail (21%), office (14%) and diversified (15%).

Price: 9.85, Change: +0.10, Percent Change: +1.03

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