This edition of Monthly Manager Insights features an idea from Vision Capital Corporation on Pure Multi-Family REIT LP. Read why they believe the REIT is priced at a 25% discount of true net asset value.
Vision Capital Corporation is the Manager of the Vision Opportunity Funds, private equity funds focused on investments in publicly-traded securities in the real estate sector. Vision targets inefficiencies that result in buying real estate cheaper in the stock market than the property market and with less risk and superior liquidity compared to direct property investments. The Funds invest primarily in North America to benefit from unique inefficiencies inherent in the pricing of Canadian and select U.S. publicly-traded real estate securities. Vision utilizes a value-based approach, employs a long-short strategy to also benefit from over-valuation or poor fundamentals, and selectively utilizes active investing strategies to improve returns.
Pure Multi-Family REIT LP is a Canadian listed REIT that invests exclusively in U.S. multi-family rental apartments located in key U.S. Sunbelt markets. The REIT’s portfolio has an average age of 12 years, the lowest amongst both Canadian and U.S. peers, and is focused on Class A mid- to high-rise buildings and garden-style rental communities.