Dream Residential REIT (DRR.UN.TO)

DRR.UN is a small-cap REITs focusing on residential properties, and is now trading at 8.2x times' Forward P/E. The company owns a portfolio of properties with a high occupancy level of 98%. Trading at a meaningful discount to NAV of $17. In the last few years, the company managed to grow distributions per share and NAV per share at attractive rates. Having said that, the balance sheet is highly leveraged, net debt to adjusted EBITDA is around 9.0x, and available liquidity is around $243M. However, the total debt service requirement amount for the remainder of 2023 is $131M, and 2024 is around $350M. The company's small size and leverage add significant risks if the economy/fundamentals were to falter.  Payout ratio (12 months). As a new small public company, in a higher interest rate environment, we think investors can wait and watch this one and see how it performs as a public entity. We think buyers have time here. 
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Newer REIT. Apartment buildings in the US. Rents are lower, assets are older. Small. Trades at a nice discount. Pretty attractive cap rate of 7.7%. Other REITs are larger, more liquid, with more institutional-quality real estate. Decent hold, but better opportunities elsewhere.