National Bank Financial analysts Matt Kornack and Giuliano Thornhill say the macro backdrop has become more challenging, with rising long bond yields prompting them to lift NAV cap rates and cut target prices for many Canadian real estate stocks. They cut equity targets by an average of 9%, and see the highest total returns in Seniors/Storage (41% and 40%), followed by Canadian apartments (20%) and industrial (19%), while office and diversified names face challenges. In their 'Focus Ideas' list, Extendicare (EXE-T) is rated outperform with a $40 target, down from $45. StorageVault Canada (SVI-T) is also rated outperform, with its target lowered to $6 from $6.50, even though the stock sits at the lower end of its recent trading range.
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