Investors looking to diversify their portfolio both across sectors and geography can look to Dream Global REIT (TSX:DRG.UN) as a value play within this relatively limited category of stocks traded on the TSX.
Dream Global REIT is one of the few publicly traded real estate investment trusts (REITs) that owns and manages a significant real estate portfolio outside of North America which is traded on the TSX, providing Canadian investors with exposure to Europe which would otherwise be difficult to achieve.
The company’s real estate portfolio is less well known in North America, leading to a potential buying opportunity for investors willing to dive into the fundamentals and the numbers beneath the underlying business model of Dream Global REIT.
The company’s rental base is supported by solid tenants who are locked in for long-term leases, creating certainty for the REIT’s cash flows and dividend distributions – the 7.5% yield certainly provides a nice margin of safety for a long-term investor looking for income, or growth, or both over a long period of time.
Looking for value outside of North America can be difficult, and time consuming from the perspective of an investor with little experience in analyzing assets in different currencies or different countries with separate legal systems and financial protocols.
That being said, taking a look at a few easier-to-understand businesses such as Dream Global REIT, it becomes clear that significant opportunities are available to the Canadian investor for diversification, with impressive potential upside.
Invest wisely, my friends.
