We’ve liquidated our position in Dream Global (DRG.UN) after the company received an all-cash bid of $16.79/unit.
First recommended a couple of years ago, this turnaround investment provided a total return of about 75%, which isn’t bad for a REIT. The stock trades at a slight discount to the bid, but the dividend has been canceled so it’s not that interesting, especially given the (very slight) chance the deal goes south.
We see Pure Multi-Family and now Dream Global REITs get acquired in the past few months and we would expect more M&A in REITs given their stable distributions in a world of negative interest rates. Most of them are expensive, but probably worth holding.
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