The Canadian 2023 REIT Outlook | Something’s Gotta Give

Mike Markidis, MD & BMO REITs Analysts walks us through his 2023 outlook. He suggests that higher interest rates have him more cautious, particularly as the adjustment process continues and the spectre of a recession looms. Accordingly, from his perspective, investors' expectations should be more tempered in 2023. Valuation screens attractive on a P/NAV basis, but our weighted average AFFO yield spread is below the LTA. In addition, capital constraints and the potential impact of a recession on tenant demand are formidable challenges; not to mention regulatory uncertainty. Given this backdrop there are still opportunities. From a fundamental perspective industrial real estate is at the top of our pecking order followed by multi-residential.

BMO clients can view our report, “2023 Outlook: Something's Gotta Give”, by visiting: https://researchglobal0.bmocapitalmarkets.com/api/v1/publication/getPublicationPdfLive/?id=27730d9f-243c-45fd-95a8-7233995c96c3&read=true&stamp=1672947432901000&sitename=Equity

Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/E174D118-40BE-4460-9143-EB52AC209805.PDF

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