SmartCentres: Dividend Growth Should Return In 2022, Resulting In A Likely 34% Upside And Single-Digit Downside

We believe that SmartCentres REIT is very mispriced. SmartCentres has a juicy dividend yield of 7.5% that is not at risk of getting cut. Founder and Chairman of the Board Mitchell Goldhar owns over 10% of the company and has been increasing his stake the entire year. Based on our estimates, SmartCentres presents a very strong reward to risk ratio with the bull case being much more probable.

​The Canadian real estate market has proven to be far more resilient than expected during 2020. Not even a global pandemic was able to keep prices from rising. However, the stock price of some big Canadian REITs definitely took a hit. SmartCentres Real Estate Investment Trust (OTCPK:CWYUF) (TSX: SRU.UN) in particular is a high-yielding bargain you don't want to miss out on. With many fearing a dividend cut, we will explain why it's actually safe and well covered. Furthermore, we will also demonstrate why there exists the opportunity for strong asymmetrical returns to the upside.

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