Shares of Canadian Apartments REIT (OTC:CDPYF) ("CAPREIT") remain stubbornly undervalued, even though management continues to make smart capital allocation decisions and as the underlying business performance remains robust.
Since I recommended shares in October, they have lost about 2% of their value (before considering dividends) relative a 1.5% return of the S&P 500 (NYSEARCA:SPY). To that end, there hasn't been much, if any, alpha from a return perspective in CAPREIT shares. However, on a risk-adjusted basis, I would posit that these shares remain lower risk at current levels than the broad market given the attractive asset base to which it is levered.
In my view, continued uncertainty relative to global monetary policy is obfuscating the underlying...
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