Canadian Real Estate 06/12/26
Valuation Update And Quick Takes
Canadian Real Estate has delivered an attractive +13.5% ytd total return (XRE a/o 6/12). US REITs are +11.5%, and the CAD is -1.9% vs USD. Economically sensitive Retail and Industrial equities have been strong.
Sector Overview
The yield premium of real estate cap rates over 10-year bond yields is near the middle of its historical range.
Most of the Canadian yield curve has moved 15-20bp lower in recent weeks. Rates are over 100bp lower than in the US at every maturity.
Insiders at 20 of 36 REIT/REOCs were buyers since 1/1/26 and 7 had net insider sales. REIT/REOCs have repurchased $361mm of equity since 1/1 (reported to 6/12) with the largest buybacks at Boardwalk (3.9% of market cap), Dream Industrial (2.4% of market cap), Dream Unlimited (1.0%), CAPREIT (0.9%), and Killam (0.8%).
Topics:
Valuation Comparison ($)
Quick Takes ($) H&R deal speculation, Canadian multifamily, Canadian Retail, and Dream group annual meetings