In the September 24th Morning Report and Ultra Money video INK Research focused on Plaza Retail REIT (PLZ) which has outperformed retail juggernaut Amazon (AMZN) over the past year. The secret to their success might be found outdoors. Below is a free version of the video that was distributed earlier this week on INK Ultra Money (since the report the REIT has continued to outperform).
INK trading day morning reports and videos are available through INKResearch.com or Canadian Insider Club Ultra memberships. INK is subscriber supported and does not accept payment for stock coverage.
Script (check against delivery):
Heads up yield hunters,
Plaza REIT is providing an above average prospective distribution yield of 6.7% which is paid monthly. The company operates primarily in Newfoundland, Prince Edward Island, Nova Scotia, New Brunswick, Quebec and Ontario. As of June 30th, the REIT had an interest in 277 properties including those under or held for development representing 8.4 million gross leasable square feet. As part of its strategy to deal with the Amazon threat Plaza is favouring open-air projects and it currently has four open-air projects under construction plus one open-air conversion underway with between a 20% and 50% ownership stake. The REIT appears to be gaining some momentum with its strategy According to Refintiv data, as of June 30th, EBITDA was 61 cents per unit on a trailing 12-month basis, up from 55 cents a year ago. In contrast, the REIT's 5-year EBITDA growth is 3.7%. Importantly, we see conviction in the REIT's strategy as CEO Michael Zakuta is buying. That stands in stark contrast to Amazon CEO Jeff Bezos who has been selling along with other insiders. We also note that over the past year, Plaza units are up 1.2% while Amazon stock is down 6.8%. Of course, Amazon does not pay a dividend. Our report which is not a recommendation to buy or sell securities is available through INKResearch.com (https://www.inkresearch.com/) or the Canadian Insider Club ( https://www.canadianinsider.com/). Good luck, friends, and thanks for listening!
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