This commercial property REIT looks seriously undervalued. Moreover, financial concerns are minimal as the company's loan-to-value ratio on its commercial property portfolio is modest and low-cost credit lines are not due for repayment for another six years. For good measure, the shares are trading on a hefty discount to net asset value (NAV), even though 92 per cent of rents are inflation protected.
Put simply, the risk premium embedded in the current valuation has scope to unwind over the next twelve months and deliver a potential 23 per cent total return, with very limited downside risk, too.
