Hi there,
DRM is an asset management company that also owns a significant stake in Dream REIT. It has a portfolio of assets in both the Cnaada and the U.S. but the bulk of its portfolio are in retail and office in Toronto and residential in Western Canada. Unfrotunately, both of these segments are currently facing headings. The struggles of the oil batch is likely to impact residential activity in Western Canada and the pandemic has impact office and retail REITs in a material way.
The question that is on everyone's minds is what a return to normal will look like? This makes it difficult to value those with significant exposure to retail and office properties. We know there has been a big shift to eCommerce and that work at home is here to stay. We also know that there is a trend of moving from urban to more rural areas as this work at home becomes more of a reality. While I have no doubt Office is here to stay (it will simply look different), I do think demand will be impacted and we will see plenty of downsizing. Yesterday, Google just announced its intentions to make work at home a mainstay - many others have already declared their intention to reduce their footprint.
Overall, it could be a decent value play (much like many other Office and Retail REITs). However, it could take some time before certainty returns and the thesis plays out.
Mat