New REIT position: GO Residential (TSX: GO.U)

The author initiates a long position in GO Residential (GO.U), a TSX-listed REIT owning luxury apartments in Manhattan. The investment thesis is built on a significant valuation discount to private market comparables, providing a substantial margin of safety. The author sees the market's pessimism, driven by rent control fears in New York, as an opportunity. The analysis suggests that the impact of potential rent control is limited for GO's portfolio. The position is further supported by high insider ownership, significant investments from respected real estate funds at higher prices, and strong fundamentals in the Manhattan rental market, which continues to see record-high rents amid low new supply.