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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