| TOP PICK | | Artis Real Estate Investment Trust | AX.UN-T | 15.300 | (A Top Pick Aug 15/07. No change.) Had a distribution increase. Started to recycle some assets with tremendous gains. Excellent leasing velocity in terms of roll-ups. Expecting near-term volatility, so buy on weakness. Yielding over 8% on a free cash flow basis. Leasing for the next 7 quarters looks very strong. | 2008-08-13 | |
| TOP PICK | | Calloway REIT | CWT.UN-T | 20.000 | (A Top Pick Aug 15/07. Down 14%.) Had to pare down a sizable acquisition and accretion got very skinny. This was headline news that weighed heavily on the price. Rock solid growth. 8.5% free cash flow yield. Tenant base is retail anchored by Wal-Mart. | 2008-08-13 | |
| TOP PICK | | Canadian Real Estate Investment | REF.UN-T | 28.650 | Office, industrial and retail across Canada. Low payout ratio. Very conservative accounting. Low leverage. 4.75% yield. 70% payout ratio. Free cash flow yield of about 7%. | 2008-08-13 | |
| PAST TOP PICK | | Dundee REIT | D.UN-T | 32.470 | (A Top Pick Aug 15/07. Down 19%.) In June/07 sold two thirds of their assets so earnings were reduced. Q3 should be their first really good, year-over-year comparisons. | 2008-08-13 | |
| BUY | | First Capital Realty | FCR-T | 22.050 | One of his favourites. Not cheap at these levels. Other names in a similar space can offer better free cash flow yield. This company offers better growth. Tend to buy value-add properties. Good quality core name. If a long-term investor, 3 to 5 years, this is a Buy. | 2008-08-13 | |
| BUY | | Home Equity Income Trust | HEQ.UN-T | 8.630 | Pretty much the only originator in reverse mortgages in Canada. 12.6% yield. | 2008-08-13 | |
| BUY | | InStorage REIT | IS.UN-T | 4.590 | The only consolidator of self-storage properties in Canada. Had overpaid for some of their assets early on. Rolling out a branding program that will kick in and killed some brand power. | 2008-08-13 | |
| Comment | | Holloway Lodging REIT | HLR.UN-T | 3.400 | Limited service hotels in Western Canada. Highly exposed to gas drilling so if you are bullish on gas prices this company will be a prime recipient. Stock is about a year behind where it belongs. Over distributing. Should have 100% payout ratio in a year. 16% yield. | 2008-08-13 | |
| DON'T BUY | | Whiterock REIT | WRK.UN-T | 10.000 | Retail, office and industrial. Biggest exposure is Regina and Quebec city. Over distributing but have made a good effort to backfill. A “wait and see” story. | 2008-08-13 | |
| DON'T BUY | | Extendicare REIT | EXE.UN-T | 7.800 | Has had an awful 2 years. Most of their distribution is “return of capital”. New management team is in place. There are other alternatives giving better cash flow. | 2008-08-13 | |
| BUY on WEAKNESS | | Cominar Real Estate Inv Tr | CUF.UN-T | 21.750 | Just reported another tremendous quarter. Great management team and very conservative. Fairly valued. Try to buy at $20. Yield of 6.6%. | 2008-08-13 | |
| HOLD | | Primaris Retail REIT | PMZ.UN-T | 16.650 | Primarily an owner of enclosed malls in the secondary market. Also own some unenclosed centres. Good management team. | 2008-08-13 | |
| DON'T BUY | | Chartwell Seniors housing | CSH.UN-T | 7.800 | Reported yesterday and missed mainly because of currency exchange. Cut distributions about 30% earlier this year. Questions management’s ability. | 2008-08-13 | |
| Comment | | Lakeview Hotel REIT | LHR.UN-X | 3.100 | Limited service hotels, primarily secondary markets in Western Canada. Huge leverage to gas prices. If you are bullish on gas this company will be a prime recipient. Very cheap. Not earning their distribution on a trailing 12-month basis. | 2008-08-13 | |
| Comment | | Temple REIT | TR.UN-X | 8.850 | Limited service hotels, primarily in Fort McMurray, which is levered to oil. If you are a long-term bull on oil and the oil sands, this would be a name you would want. | 2008-08-13 | |
| BUY on WEAKNESS | | Northern Property REIT | NPR.UN-T | 22.500 | Primarily multiresidential seniors housing. Pretty solid cash flow. Strong growth potential internally. Free cash flow yield of about 8.5%. Try to get in at around $20 but is cheap at these levels. | 2008-08-13 | |
| HOLD | | Homburg Invest Inc. | HII.A-T | 3.890 | Has never been comfortable owning this name because of European assets in the Baltic. Good quality assets in Canada. | 2008-08-13 | |
| TOP PICK | | Allied Properties REIT | AP.UN-T | 21.100 | Brick and beam. Continue to source accretive acquisitions and continue to release existing properties at significant spreads. Dominant landowner in the Greater Toronto Area, which will have significant upside value years later. Try to Buy below $21. | 2008-06-12 | |
| TOP PICK | | Artis Real Estate Investment Trust | AX.UN-T | 16.660 | Tremendous leasing spread in the Calgary office market. 70% of their leasing has already been done. Tremendous free cash flow growth. If you Buy under $16, you can expect double-digit returns year over year. | 2008-06-12 | |
| TOP PICK | | Home Equity Income Trust | HEQ.UN-T | 8.670 | Largest originator of reverse mortgages in Canada. Sold off significantly because of concerns about their ability to source capital. Major risk would be if a bank and initiates their own business, but he can't see this happening. | 2008-06-12 | |
| PAST TOP PICK | | First Capital Realty | FCR-T | 24.250 | (A Top Pick Aug 16/07. Up 1%.) Came out with a new equity issue that diluted the stock. Balance sheet is in perfect shape. Stable asset class. | 2008-06-12 | |
| PAST TOP PICK | | InStorage REIT | IS.UN-T | 4.170 | (A Top Pick Aug 16/07. Down 45%.) The only REIT consolidator of self-storage properties in Canada. Some operational management issues. Value is there, assets are great and the cash flow will materialize. It will just take a little longer. Still a Buy. | 2008-06-12 | |
| PAST TOP PICK | | Brookfield Properties | BPO-T | 19.220 | (A Top Pick Aug 16/07. Down 16%.) Have a big lease with Merrill Lynch in New York until 2013 and will have no trouble re-leasing. All the negative news has been discounted into the price and none of the positive news has been taken into account. Compelling value. | 2008-06-12 | |
| DON'T BUY | | Chartwell Seniors housing | CSH.UN-T | 10.100 | Cut their distribution recently, which was right. Strategy had been to grow into the distribution, which they failed to do. Offers fairly attractive value but you have to underwrite the growth to get an attractive return. Would be looking for it below $9.50 before Buying again. | 2008-06-12 | |
| BUY | | Extendicare REIT | EXE.UN-T | 9.540 | Long-term care facilities in Canada with skilled nurse facilities in the US. Raised capital that was very dilutive to the stock. Poor quarter with low cash flow generation. 14% free cash flow yield and the distribution is covered. Attractive at these levels but would look to unload around $11. | 2008-06-12 | |
| Comment | | Temple REIT | TR.UN-X | 9.000 | A limited-service lodging REIT that focuses almost exclusively on Fort McMurray. Was not a fan in the past, but their results have been phenomenal. Not sure how much upside is left. | 2008-06-12 | |
| Comment | | Calloway REIT | CWT.UN-T | 21.410 | A good name. Very cheap right now. His concern is on their most recent transaction of $600 million in real estate, which he feels is dilutive. Attractive price with an almost 8% free cash flow yield. Rock solid portfolio. Will watch to see what kind of growth they can develop. | 2008-06-12 | |
| DON'T BUY | | RioCan Real Estate Investment | REI.UN-T | 21.170 | The flagship REIT in Canada. Continue to find ways to create value. Offers about 6.75% free cash flow yield and is pretty much fairly valued. | 2008-06-12 | |
| BUY | | Killam Properties Inc | KMP-T | 7.940 | Owns B & C multi residential properties. They dominate Atlantic Canada. A great name. | 2008-06-12 | |
| HOLD | | H&R Real Estate Inv Trust | HR.UN-T | 19.650 | Commercial diversified REIT of office, industrial, retail. Nationally diversified and also quite a bit of US assets. Building Encana’s (ECA-T) head office in Calgary. As the transaction goes on and on it seems like it’s less accretive where it’s probably dilutive at this point. | 2008-06-12 | |
| DON'T BUY | | Retrocom Mid-Market REIT | RMM.UN-T | 4.420 | Recent transaction where Smart Centres sold them a number of assets at about a 9% cash flow yield. Improves the quality of their portfolio and provides an avenue of growth for them. Real Estate in this REIT is definitely not of the best quality. A lot of management turnover. | 2008-06-12 | |
| BUY | | BTB Real Estate Investment Trust | BTB.UN-X | 1.290 | Had a distribution cut, which hit the stock price. Good management. Assets are office, retail and industrial generally in Quebec City and secondary markets in and around Quebec. Payout ratio was too high. Pretty compelling yield now. | 2008-06-12 | |
| HOLD | | Whiterock REIT | WRK.UN-T | 10.520 | Put themselves up for sale, which created a lot of confusion. At the end of the day this is a quality portfolio of commercial diversified assets. Good exposure to the Saskatchewan economy as well as Quebec City. Need a couple of quarters to see what it’s going to look like going forward. | 2008-06-12 | |
| BUY | | Homburg Invest Inc. | HII.A-T | 4.220 | Owns a lot of really good real estate in Calgary and Atlantic Canada but also a lot of assets in central and eastern Europe. Dividend of 11% should be safe. Payout ratio of 50%-60%. | 2008-06-12 | |
| DON'T BUY | | Hungtingdon REIT | HNT.UN-T | 2.120 | Started up with a very high payout ratio of 140% and are still not earning their distribution. Real estate quality is much less than others. | 2008-06-12 | |
| Comment | | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Purchasing your first REIT- Suggest RIOCAN. Largest REIT in Canada, very defensive asset class and retail. Very large and liquid. | 2008-03-24 | |
| DON'T BUY | | Temple REIT | TR.UN-X | 6.500 | Focused on limited service, secondary markets for the lodging space. Payout ratio is unsustainable. Is not a name we’d be buying | 2008-03-24 | |
| BUY | | Brookfield Properties | BPO-T | 18.730 | Been very bullish on this for well over a year. An office focused REIT. Trading at a discount to its net asset value. Cheap, belongs between $21-23. | 2008-03-24 | |
| BUY | | Extendicare REIT | EXE.UN-T | 11.200 | A seniors housing REIT. Considered it as a top pick based solely on its evaluation. The payout ratio is very safe. Very large discount to its net asset value. Offers a very attractive entry point at these levels. | 2008-03-24 | |
| PAST TOP PICK | | Artis Real Estate Investment Trust | AX.UN-T | 15.030 | (Top pick, February 16, 2007. Down 11%) Has done nothing wrong. Excellent balance sheet. Trading at an 8.5% free cash flow yield. Undervalued. | 2008-03-24 | |
| Comment | | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Real estate outlook- Can’t recommend an ETF or index fund. Benchmark the large pension plans for a real estate allocation. | 2008-03-24 | |
| PAST TOP PICK | | Mainstreet Equity Corp | MEQ-T | 13.240 | (Top pick, February 16, 2007. Down 29%) Not much has changed with their story. Had weakness in terms of their occupancy numbers. They assure they will be back on track by the end of this year. Would add at these levels. | 2008-03-24 | |
| BUY | | RioCan Real Estate Investment | REI.UN-T | 20.090 | Largest REIT in Canada. Focused on the big 6 markets in Canada. Made a big push into intensification. Like’s at these levels, is trading at net asset value. Not a lot of upside short term, but long term you’ll be happy. | 2008-03-24 | |
| WEAK BUY | | Chartwell Seniors housing | CSH.UN-T | 8.880 | Been buyers at the $8.5 level, based on the free cash flow yield. Would buy at this level. Comfortable with their payout ratio at 100% | 2008-03-24 | |
| WEAK BUY | | InStorage REIT | IS.UN-T | 5.310 | Buyers on the margin. At this level it is very cheap. Q1 and Q4 are seasonally weak for REIT’s. | 2008-03-24 | |
| HOLD | | BTB Real Estate Investment Trust | BTB.UN-X | 1.850 | A small cap commercial diversified. Focused primarily on Quebec. Over distributing. Cheap at these levels. | 2008-03-24 | |
| PAST TOP PICK | | Holloway Lodging REIT | HLR.UN-T | 3.660 | (Top pick, February 16, 2007. Down 22%) Satisfied with what they’re doing to turn their ship around. We’re long-term strategic holders in this name. Comfortable at this level. Would buy at this level. | 2008-03-24 | |
| VAGUE | | Killam Properties Inc | KMP-T | 7.600 | Apartments and manufactured home communities, primarily in Atlantic Canada. | 2008-03-24 | |
| WEAK BUY | | Crombie Real Estate Investment Trust | CRR.UN-T | 11.000 | You get Atlantic exposure out of this company. Their Q4 was very strong. A good name. Not a core name. | 2008-03-24 | |
| Comment | | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Owning REIT’s in an RSP- Doesn’t make a lot of sense from a taxation perspective. If your looking to maximize your total returns from your RSP then adding real estate to it does make sense. | 2008-03-24 | |
| VAGUE | | Royal Host Real Estate I.T. | RYL.UN-T | 6.360 | Will become a leveraged play that generates cash flow from a fixed portfolio of real estate, but is used to do other things. Wouldn’t recommend it at these levels as a REIT. As an investment, it has a secure portfolio. | 2008-03-24 | |
| DON'T BUY | | Calloway REIT | CWT.UN-T | 19.720 | Similar to RIOCAN. Don’t like recent transactions which haven’t really benefited company, but more so their smart centres and Wal-Mart. | 2008-03-24 | |
| WAIT | | Dundee REIT | D.UN-T | 31.900 | Their future is pretty bright. Tremendous exposure to Western Canada. Unsure of what they will do next. | 2008-03-24 | |
| WEAK BUY | | Whiterock REIT | WRK.UN-T | 9.600 | An attractive name, the portfolio is over distributing. The quality of the real estate is exceptionally good. Structured very well. | 2008-03-24 | |
| DON'T BUY | | Trimac Income Fund | TMA.UN-T | 6.600 | They own a portfolio of mortgages. They manufacture mortgages. Not a buy. Do not buy any American mortgage REIT’s at this time. | 2008-03-24 | |
| WAIT | | A Comment -- General Comments From an Expert | A Commentary | 0.020 | U.S REIT’s- U.S REIT’s are slightly undervalued at these levels, a very volatile market. Have been a seller in the very recent past. Be patient and wait for April-July to buy. | 2008-03-24 | |
| TOP PICK | | Artis Real Estate Investment Trust | AX.UN-T | 13.350 | Was a past top pick, still likes it. Their results reported today were very strong. Very sustainable payout ratio, about 85%. Exposure to the western economy. $30 mil of cash on the balance sheet. A great name. | 2008-03-24 | |
| TOP PICK | | British Land Company | BLND-FTSE | 0.000 | Owns out of town retail and London city centre office. A great name, a great portfolio and a great entry point. | 2008-03-24 | |
| TOP PICK | | Westfield REIT (Australia) | WDC-ASX | 0.000 | The largest publicly traded real estate name on the planet. Focused solely on enclosed malls in Australia, New Zealand, U.K and U.S. Very strong results out of Australia. Currency is working in your favour. | 2008-03-24 | |
| BUY | | Dundee REIT | D.UN-T | 34.250 | Almost entirely focused in Alberta. Office/industrial properties. Able to grow free cash flow internally. NAV is probably in the $40 to $42 range. This is for long-term investors. You have to understand that the Alberta market is slowing down but still one of the best markets in Canada. He uses it as a trade. | 2008-02-29 | |
| BUY | | Boardwalk REIT | BEI.UN-T | 36.780 | Multi-residential apartments, mainly in Alberta. Market was disappointed with results in the last quarter. In-place rent and market rent had a difference of $150 million. Rents dropped, so their loss to lease was cut in half. It still has exposure to the best leasing markets in Canada. There are no concerns in raising debt. A good name. | 2008-02-29 | |
| BUY | | InStorage REIT | IS.UN-T | 6.570 | Likes this from a fundamental standpoint. It is the only consolidator of self-storage property in Canada. Would like to see a little bit better disclosure on what they are doing in terms of rent. Starting to see that coming now. Trading at a slight discount to NAV. Tremendous free cash flow yield. | 2008-02-29 | |
| Comment | | Chartwell Seniors housing | CSH.UN-T | 10.210 | Senior housing/launching will not qualify as REITs for tax purposes. Tax will be minimal for them. They have had operational issues. If it dropped below $10, it would be extremely cheap and he would have a hard time not buying it. He went unload his position at $11.50 or better. | 2008-02-29 | |
| BUY | | Lakeview Hotel REIT | LHR.UN-X | 3.400 | Limited service hotels, primarily in Western Canada but expanding throughout the nation. About an 85% payout ratio. Would like to see them lower their leverage a little bit. Doesn't have a lot of debt coming up for renewal so is not subject to a squeeze. Good strong management team. | 2008-02-29 | |
| BUY | | Brookfield Properties | BPO-T | 18.360 | 0wns class A and luxury office towers in major cities in Canada and the US. Market was concerned about the Merrill Lynch lease in New York City, but they look like they are staying for another 5 years. There is also concern about the slowdown in Calgary but they still meet their numbers. Everyone is disregarding the positive news. | 2008-02-29 | |
| DON'T BUY | | Homburg Invest Inc. | HII.A-T | 4.340 | A commercial diversified name. Gives exposure to Alberta offices, assets in Montreal as well as Germany and some of the Baltic nations. He believes the dividend yield of 11% is fully covered by free cash flow. He has a hard time getting his head around the structure and didn't like some of the exposure they were getting out of the Baltic nations. | 2008-02-29 | |
| BUY | | Crombie Real Estate Investment Trust | CRR.UN-T | 11.000 | Primarily retail. Most of its exposure is in Atlantic Canada. They are the monetization vehicle for Sobey’s and Empire. Recently blended in 62 properties of real estate from Empire. Reported 2 days ago and their results were fantastic. Distribution is covered and the debt is well in place. | 2008-02-29 | |
| TOP PICK | | Allied Properties REIT | AP.UN-T | 18.790 | Only consolidator in post/beam niche so they are still able to do accretive acquisitions. Good leveraged position. Raised capital last year at over $19 so there is no issue there. Strong free cash flow growth. Excellent management team. Have had distribution increases of about 3.5%-4% for the last 5 years every March. | 2008-02-29 | |
| TOP PICK | | Artis Real Estate Investment Trust | AX.UN-T | 14.560 | Office/industrial and retail based in Western Canada. The idea is to own B assets in A markets and A assets in B markets. Tremendous internal growth with leasing spreads at 79%. Discount to NAV. Strong internal management. | 2008-02-29 | |
| TOP PICK | | Killam Properties Inc | KMP-T | 7.590 | This is his more defensive pick. Mostly residential and manufactured homes, mostly Atlantic Canada but also Ontario. Not as much internal growth. Payout ratio is in the low 80%’s. Discount to NAV. Strong and sustainable free cash flow growth. | 2008-02-29 | |
| Comment | | InnVest Reit | INN.UN-T | 9.250 | Limited service hotels, primarily in Ontario and Quebec. Hasn’t been a big fan of this one. Assets are a little older and they’ve had some operational issues with their Western assets. There are some strategic questions about what they are going to be going forward. Distribution is sustainable and it is definitely undervalued. | 2008-02-29 | |
| BUY on WEAKNESS | | RioCan Real Estate Investment | REI.UN-T | 20.520 | The bellwether flagship of REITs in the Canadian universe. Makes up about 25% of the index. Has power centres, unenclosed malls in the big 6 markets in Canada. About as rock solid as you can get. Trading at a slight premium above NAV. He would be a buyer under $20 and a seller over $21. | 2008-02-29 | |
| Comment | | Holloway Lodging REIT | HLR.UN-T | 3.660 | The question with this group is the Palmeroy portfolio that they bought. Paid above replacement costs and renovations haven't borne out as they thought they would. Management is internalizing that portfolio now. Looking for better results of this portfolio in Q2 and Q3. | 2008-02-29 | |
| Comment | | Calloway REIT | CWT.UN-T | 21.550 | One of the benchmark bellwether REITs. Unenclosed malls throughout Canada. 25% of their tenant base is Wal-Mart. Reported today and numbers were pretty much in line. The one concern is the $688 million portfolio that they bought from Smart Centres. Rumour on the street is that they are looking for a buyer for half of it and get asset management fees. | 2008-02-29 | |
| STRONG BUY | | InStorage REIT | IS.UN-T | 0.800 | The only consolidator of self-storage facilities in Canada. Stock has had terrible performance over the last year. Operationally, the company is firing on all cylinders. Stock got away from itself and peaked at $2. | 2008-01-14 | |
| BUY | | Brookfield Properties | BPO-T | 18.340 | Luxury, class A office buildings. A great name with a tremendous portfolio. Top tier management team. There were concerns that Merrill Lynch, their largest tenant, would leave but have actually signed a 5-year extension. Buying back stock. | 2008-01-14 | |
| HOLD | | BTB Real Estate Investment Trust | BTB.UN-X | 2.150 | B quality real estate in secondary markets throughout Quebec. Toured their facilities and was pleasantly surprised with the quality. Very impressed with management. Trading around NAV. | 2008-01-14 | |
| DON'T BUY | | InnVest Reit | INN.UN-T | 9.350 | Limited service hotels. Recently did a transaction, which helped privatize Legacy REITs. Portfolio is in a state of flux. Not a core name for him. Go after the blue chips instead. | 2008-01-14 | |
| PAST TOP PICK | | Mainstreet Equity Corp | MEQ-T | 15.410 | (A Top Pick Feb 16/07. Down 13.4%.) The only risk factor with this is the shortage of skilled labour in Western Canada, which they need for renovations on acquired properties. NAV is in the $20 range. Still likes and is still a Buy. | 2008-01-14 | |
| PAST TOP PICK | | Artis Real Estate Investment Trust | AX.UN-T | 13.700 | (A Top Pick Feb 16/07. Down 16%.) Great quality name. Suffered from perception of a slowdown in Western Canada. Still significant internal growth through lease renewals. 7.8% distribution should be safe. Still a Buy. | 2008-01-14 | |
| PAST TOP PICK | | Holloway Lodging REIT | HLR.UN-T | 3.800 | (A Top Pick Feb 16/07. Down 28%.) Limite- service and secondary hotels in Western Canada. Drilling activity has tailed off but should pick back up. Q3 numbers showed a drop in occupancy. Have good access to capital. Still a Buy. | 2008-01-14 | |
| SELL | | Royal Host Real Estate I.T. | RYL.UN-T | 6.280 | Would prefer Holloway Lodging (HLR.UN-T). COO left and not sure if there are any personnel running this one. Consider this one as I leveraged real estate play rather than a REIT. Owns limited-service hotels, mostly in Western Canada but is currently more of a seller of assets rather than an acquirer. | 2008-01-14 | |
| Comment | | Canadian Apartment Properties | CAR.UN-T | 14.300 | Large apartment buildings, mainly in Toronto and Montreal. Good management. Very cheap at these levels. Acquiring at a very large discount to NAV but will sell when it comes back. Treating it as a trade. | 2008-01-14 | |
| BUY | | Extendicare REIT | EXE.UN-T | 11.300 | Owns a small piece as a trading position as it is at a large discount to end its NAV. When it comes back, he will sell it out. | 2008-01-14 | |
| SELL | | Hungtingdon REIT | HNT.UN-T | 2.150 | Commercial diversified focused in Western Canada. Distribution is not safe. Payout ratio is north of 120%. Leverage is also high. | 2008-01-14 | |
| DON'T BUY | | Homburg Invest Inc. | HII.A-T | 4.200 | What they owned in Canada is great but what they own in Europe is another matter. Have some concerns on the central and eastern European exposure. Not willing to take the risk. | 2008-01-14 | |
| TOP PICK | | Calloway REIT | CWT.UN-T | 21.790 | Has a 15% discount to NAV. Just over 7% cash flow yield. Stable portfolio of unenclosed retail, mostly anchored by Wal-Mart. Will probably be the largest REIT in Canada in 2 years time. Tremendous value. | 2008-01-14 | |
| TOP PICK | | H&R Real Estate Inv Trust | HR.UN-T | 18.350 | Owns office, industrial and retail properties. They are properties that are generally done as sale and lease back so are core to the tenants. Long-term leases with long-term debt. Very little cash flow volatility. Trades at a 30% discount to NAV. | 2008-01-14 | |
| TOP PICK | | Simon Property Group Inc. | SPG-N | 81.690 | The largest retail REIT in the US. Owns dominant regional malls across the US and increasingly in Europe and Asia. 30% to 35% discount to NAV. 6% free cash flow yield. 4.2% distribution. | 2008-01-14 | |
| BUY | | Crombie Real Estate Investment Trust | CRR.UN-T | 11.000 | (Market Call Minute.) Discount to NAV, good cash flow generation and a strong portfolio makes it a Buy. | 2008-01-14 | |
| BUY | | Altus Group Income Fund | AIF.UN-T | 18.250 | (Market Call Minute.) This is a Buy, but sentiment might work against you in that this is a service-oriented business with very little assets. Cash flow generation is strong and their ability to acquire is great. 6.6% yield is safe. | 2008-01-14 | |
| SELL | | Retrocom Mid-Market REIT | RMM.UN-T | 3.970 | (Market Call Minute.) A broken REIT that is dying a slow and painful death. | 2008-01-14 | |
| BUY | | RioCan Real Estate Investment | REI.UN-T | 19.310 | Largest REIT in Canada. Trading at a discount to NAV. | 2008-01-14 | |
| BUY | | Northern Property REIT | NPR.UN-T | 20.900 | Started acquiring seniors housing properties, sales/lease backs as well as industrial/commercial real estate in northern and remote geographies. Waiting for a little more clarity on management strategies before buying more. Good quality. Trades at a discount to NAV. | 2008-01-14 | |
| TOP PICK | | First Capital Realty | FCR-T | 24.760 | A more defensive pick. Best management team in the business. Grocery and drug store anchored neighbourhood shopping centres. Trades at about 15% discount to NAV. About a 6% free cash flow yield. Have been tremendous in adding value, developing sites and controlling retail nodes. Management owns in excess of 50%. | 2007-12-07 | |
| TOP PICK | | Artis Real Estate Investment Trust | AX.UN-T | 15.160 | Office, industrial and retail in Manitoba to B.C. More of a tactical call. Even if concerned about a slowdown in Western Canada, the portfolio in Calgary is almost fully occupied and rents are so far below market that even if rents rolled down 20%, you would still get significant internal cash flow growth. | 2007-12-07 | |
| TOP PICK | | Brookfield Properties | BPO-T | 21.090 | Owns class A office and luxury office in Toronto, Ottawa, Calgary and New York City and Boston. Has been beaten up by subprime and fears that Merrill Lynch, their biggest tenet, is going to leave. Even if they did leave, that would be a positive because they pay way below market in terms of rent. 25% discount to NAV. Tremendous growth and tremendous asset portfolio. 2% yield. | 2007-12-07 | |
| BUY on WEAKNESS | | Canadian Real Estate Investment | REF.UN-T | 29.380 | One of his favourite names. Office and industrial. Spread across Canada with about 32% in Western Canada. Excellent management team and very conservatively run. Low payout ratio. Buy in the $27-$28 range. 4.5% yield. | 2007-12-07 | |
| DON'T BUY | | Retrocom Mid-Market REIT | RMM.UN-T | 3.760 | A broken REIT. Their strategy was to buy mid-market retail property in secondary locations and B assets in A locations. Hasn't really worked. New management is rationalizing portfolio. | 2007-12-07 | |
| Comment | | Boardwalk REIT | BEI.UN-T | 44.700 | Residential properties with big concentrations in Edmonton and Calgary. These markets appear to be slowing in terms of rent growth. This is a call on how bullish you are on Western Canada. If you are an oil/gas and mining bull this is a good name for your portfolio. If you are cautious and concerned about a slowdown in Western Canada, you should avoid it. | 2007-12-07 | |
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