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Real Estate Report

Summit Industrial Income REIT

Oct 04, 2022

SMU.UN
Investment Type
Small-Cap
Risk Level
Action
Rec. Price ()

Section1: Company Overview and Fundamental Insights:

1.1 Company Overview:

Summit Industrial Income REIT (SMU.UN) is a Canada-based mutual fund trust. The Trust is involved in the commercial leasing of real estate property with property locations in Ontario, Western Canada, Quebec and Atlantic Canada. The company is focused on the light industrial sector of the Canadian real estate industry.

1.2 The Key Positives, Negatives, Investment Highlights and Risks

 1.3 Top 10 Shareholders:

The top 10 shareholders together form ~23.17% of the total shareholding. The Vanguard Group, Inc. and BlackRock Institutional Trust Company, N.A. holds a maximum stake in the company at ~­­­3.16% and ~2.86%, respectively.

1.4 Key Metrics:

The company reported strong growth in its occupancy rates on sequential basis which stood at 99.1% in Q2 2022, additionally its GLA is also increasing on a sequential basis, along elevated net rental income. Furthermore, it gained traction under FFO, which is a key positive, demonstrating its strength and adaptability.

Section 2: Business Updates and Financial Highlights

2.1 Recent Updates: The below picture gives an overview of its recent activities, such as announcement regarding an information on its upcoming financial results and dividend distribution.

2.2 Insights of Q2 2022 Financial Performance:

 Section 3: Key Risks and Company Outlook

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

4.2 Fundamental Valuation

Valuation Methodology: Price to Earnings Multiple Based Relative Valuation (Illustrative)

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is Oct 3, 2022. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock. 

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock. 

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.


Disclaimer

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