BCV Bulletin - Recent Trading Activity - September 19, 2025
Sell: Granite Industrial REIT (TSX: GRT.UN)
We have exited our Granite Industrial REIT (GRT.UN) position, which has begun to see improvement in their occupancy rates and higher leasing spreads. These factors, coupled with the expectation for further interest rate cuts (which may or may not impact the company's long-term borrowing rates), has seen the stock recently appreciate closer to its fair value. Given the current economic climate, we believe there are better risk-adjusted returns available in other parts of the portfolio.
Buy: Gildan Activewear (NYSE: GIL)
BCV has added to our Gildan Activewear (GIL) position. Gildan is the world’s largest vertically integrated manufacturer of apparel. They specialize in selling print wear primarily to wholesale distributors. Gildan recently announced the acquisition of Hanes Brands, a global manufacturer of innerwear and apparel brands. The acquisition is expected to create significant synergies from utilizing Gildan’s low-cost manufacturing capabilities. The acquisition provides an opportunity for enhanced diversification, a strengthened competitive position, and improved scale. The transaction is financially accretive, with Gildan expecting to be able to grow earnings per share at 20%+ per year, over the next three years. At the current valuation, we view this as a compelling investment opportunity.
This BCV Bulletin is intended for residents of the provinces and territories in which we are registered, is not meant to be a solicitation to any persons not resident in those jurisdictions and does not constitute an offer to buy or sell our products or services. Any opinions expressed are just that and are subject to change. Information is provided on a best-effort basis and its accuracy cannot be guaranteed. Information may also be provided from third party sources which are believed to be reliable, but we do not guarantee its accuracy or completeness. Certain statements may contain forward-looking statements, which involve known and unknown risk, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. This BCV Bulletin has been prepared for general informational purposes only, is not intended as investment and/or financial advice on any subject matter and the securities mentioned should not be construed as a recommendation for any specific securities. ©BCV Asset Management Inc. 2025.
