Morguard Corporation owns, operates and manages a diversified real estate portfolio across North America. Property types include residential, retail, office, and hotel. Historically, the company’s CEO and controlling shareholder Rai Sahi has a strong track record of creating shareholder value; however, the last few years and particularly 2020 have proven difficult. COVID’s impact on the profitability and valuation of retail, office and hotel assets caused the share price to decrease by 42% in 2020.
Morguard has historically traded at relatively low valuations in terms of P/FFO and P/NAV, but after the 2020 sell-off the stock is currently trading at ~37% of the Company’s estimate of NAV.
This video looks at shares of Morguard $MRC.TO to see if the stock represents an attractive opportunity, including a discussion on key considerations for investors as well as Bull and Bear scenarios for the stock.
Links to excellent articles about CEO Rai Sahi can be found here.