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November 13, 2019 - Blog Article
Melcor Real Estate Investment Trust Holdings Strengthen

The Melcor Real Estate Investment Trust trades on the Toronto Stock Exchange under the tickler (TSE: MR.UN). On Monday, November 4th, 2019, they hit a significant milestone. They managed to cross above their fifty-two-day moving average, which was stuck on C$7.76. 

Their stocks jumped up and traded as high as C$8.10 previously sold at C$8.05. The volume of shares that were in circulation amounted to 14,566 during this time. 

 

 

Melcor REIT Holdings

Melcor REIT deals primarily with acquisition and leasing of high-end retail, industrial and office properties in western Canada. All of these properties are income-generating properties, and this unincorporated real estate trust has managed to rack up quite a portfolio so far.

Melcor has interest in 38 properties, or approximately 2.93 million square feet of gross leasable area in Western Canada. They are primarily situated in Alberta, British Columbia, Kelowna, Regina, and Saskatchewan.

 

The state of Melcor REIT and their recent Retail acquisition

Even before the jump in their stock trading price to C$8.01, Melcor REIT had a pretty stable situation. Their fifty-day moving average stands at C$7.78, and their two-hundred-day moving average stands at C$7.73.

The company also made a few great investments into retail development recently, with the crown being their $54.8 million third-party property acquisition.

On October 10th Melcor REIT acquired a open retail power centre on a 33.3 acre site. The multi-building purchase in Grande Prairie, Alberta province contains 283,235 square feet of gross leasable area

This acquisition significantly boosts Melcor REITs total commercial retail real estate portfolio by nearly 10% in GLA.

The acquired property counts 15 buildings built in the period between 1997 and 2006 equipped with parking spaces for around 1,300 vehicles. On October 1st, 98.9% of the property was leased to 29 tenants, and the average lease term was four years. 

It is also shadow-anchored by a Walmart Supercenter and a Save-On-Foods, which is another guarantee of property quality and long-term stability.

Due to their stocks’ performance on the market and their recent expansion, their rating was updated by Wall Street analysts. They are currently looking at an analyst consensus of Hold with a price target of C$8.00.

 

Summary

Melcor REIT made a few great investments into development recently, with the crown being their $54.8 million third-party property acquisition.  Their success as a business operating in western Canada is due to their focus on investing in Canadian retail real estate and other income-producing properties.

All in all, the retail real estate market in western Canada continues to bloom, and there are no signs that it will slow down anytime soon. Contact Redev Properties for more insight about investing in Canada retail real estate.