REITinvestor issues positive #2 rank to Dundee REIT- raises target to $18.50/unit
REITinvestor.ca issues a positive #2 Ranking and estimates Dundee’s distribution to be safe for the next 12 months. Target is today raised to $18.50 per unit.
Dundee REIT (D.UN - TSX) May 12, 2009 REITinvestor.ca issues a positive #2 Ranking and estimates Dundee’s distribution to be safe for the next 12 months. Target is today raised to $18.50 per unit. REITinvestor.ca, a private subscriber-based independent rating and ranking service, today issues a positive #2 ranking for Dundee REIT, and believes that the current distribution of $0.183 per month ($2.20 annualized) is safe for the next 12 months. Following a review of Dundee REIT’s Q1-09 Report, REITinvestor.ca is increasing its 3-month target from $16.88 to $18.50 for D.UN. Of particular note to REITinvestor.ca: Dundee has increased its AFFO to be nearly equal to its distribution through solid management performance on lease rollovers and new leases. Dundee reported in Q1-09 that it increased occupancy by 14,000 square feet, managing to release or renew 174,000 sq. ft. of the 162,000 sq. ft. that expired. Of the vacant space at period-end, approximately 70,000, or 23% has been committed. This leaves the vacancy rate at approximately 3%. Liquidity remains exceptional with cash and credit lines reported at $124M. We calculate the liquidity to total-debt ratio to be over 14%. Management expects to add $12M to its liquidity later this year through proceeds from excess mortgage refinancing. Mortgage renewals due in Q2 & Q3 of 2009 total $129M. Management reports that it is currently finalizing $54M of $75M due, and has begun the process of refinancing the balance due, without concern for liquidity. D.UN units closed on Monday, May 10 at $15.79 per unit. For more information, visit REITinvestor.ca
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