STOCKCHASE

26.150

Investing in their debt? Largest Canadian REIT and is focused on shopping centers. People are looking for yield and safety of principal and you get it with this company. If you are looking for a reliable, safe, predictable income stream where you can sleep at night, this is a good call.

2011-12-21

BUY

Boardwalk REIT

BEI.UN-T

51.540

(Market Call Minute.) Well positioned in apartments in Western Canada and he is looking for growth there.

2011-12-21

PAST TOP PICK

5.240

(A Top Pick Jan 18/11. Up 5.15%.) Still likes it but he sold most of his position. Has a very nice distribution of 8.6%. They are overpaying their distribution but he believes they are going to grow into it. There was some disappointment when only one of their 8 Zellers’ stores was picked up by Target.

2011-12-21

Comment

0.020

Canadian housing bubble? What is different about the Canadian residential housing market is that housing is bought by folks for the right reasons i.e. people that want to live in them as their principal residence. They are not overleveraged unlike the US. The incentive is to pay down the mortgage as quickly as possible. He doesn't see a housing bubble. There is positive immigration, people have jobs and they need a place to live.

2011-12-21

Comment

Brookfield Asset Management (A)

0.020

Real estate operating corporations versus REITs? The major difference is that REITs are a more tax efficient structure. Wouldn't be fussed about the difference.

2011-12-21

HOLD

Primaris Retail REIT

PMZ.UN-T

20.850

(Market Call Minute.) Likes the retail space. Have a bigger fashion concentration than other names.

2011-12-21

SELL

Whiterock REIT

WRK.UN-T

13.460

(Market Call Minute.) Thinks there are corporate governance issues

2011-12-21

BUY

BAM.A-T

27.520

(Market Call Minute.) One the best companies on the planet.

2011-12-21

Comment

Extendicare REIT

EXE.UN-T

8.250

Doesn't follow this activity because they have a huge exposure to the US nursing home sector, which has been a minefield of problems over a 15 year period. They are at the vagaries of government policy, which changes rapidly. He is also less favourably inclined to the US. A much better bet would be Leisureworld (LW-T).

2011-12-21

DON'T BUY

Scott's REIT

SRQ.UN-T

4.820

He has been Short this stock for some time. They had a big concentration of tenancy to Prism, which has had financial troubles and they are disclaiming leases and has some short-term capital issues there. Very high risk and he does not believe the yield is sustainable.

2011-12-21

TOP PICK

22.500

(A Top Pick Jan 18/11. Up 45.63%.) Unique in that it is a corporation, not a REIT. They don't pay a dividend. Have grown from 272 apartment units in 1998 to about 7800 units with a net equity capital of $10 million. Focused in Western Canada. Appraised value of $42.80 a share and he thinks it will get to the $33 range. No dividend.

2011-12-21

HOLD

13.900

(Market Call Minute.) Increasing exposure to the US. Going to internalize but they have bought billions of dollars of real estate with external management.

2011-12-21

Comment

Temple REIT

TR.UN-X

4.650

Very focused on hotels in Western Canada and, particularly, in Fort McMurray so it is a very leveraged bet on economic conditions and hotel market in particular in Fort McMurray. There are some risks to it. Good yield of 10.3%. Payout ratio indicates they are overpaying. Reasonable investment, but a high risk/high reward situation.

2011-12-21

BUY

InterRent REIT

IIP.UN-T

3.160

(Market Call Minute.) Well-managed.

2011-12-21

PAST TOP PICK

Northwest Healthcare Property REIT

72.700

(A Top Pick Jan 18/11. Up 52.2%.) 8th largest real estate entity with 18,000,000 ft.². Diversified into different asset classes. The independent appraised value is $140 a share. Still a Buy.

2011-12-21

HOLD

Partners REIT

PAR.UN-X

1.840

In the commercial space. Have some decent retail centers. Not his favourite name but wouldn't hesitate to hold it if he owned it. His concern is that it is externally managed. There are better names. 8.69% dividend.

2011-12-21

Comment

NWH.UN-T

11.190

Medical office buildings. Outstanding management and quite acquisitive. Has been some pressure on their unit price recently because of some overhang from expectation that they are going to do an equity issue but management has stated there is nothing imminent in this regard. They were overpaying but will cover the distribution next year.

2011-12-21

Comment

Leisureworld Senior Care Corp

LW-T

11.010

Focused in Ontario. 7.7% dividend is reliable. Well-managed. Cheap.

2011-12-21

TOP PICK

TransGlobe Apartment REIT

0.810

A consolidator and developer of child care centers in Canada. The leading player in this space. There is a shortage of 165,000 child care spaces. Has grown from zero in May of 2010 to 4500 licensed childcare in 44 centers. Outstanding management. Back up the truck.

2011-12-21

TOP PICK

Exchange Income

EIF-T

24.390

Are in 2 segments. 1) Specialized aviation with the government being their largest customer and 2) manufacturing. Just announced a $500 million contract for cell towers with AT&T over 3 years with one of their recent acquisitions in the US. One of the best managed companies in Canada. Dividend yield of 6.6% and an 80% payout ratio. Looking for $30 next year.

2011-12-21

BUY

TGA.UN-T

11.480

Apartments. Have gone through some transition in the last year by internalizing management. Management is competent. Thinks the distribution is sustainable.

2011-12-21

HOLD

Tricon Capital Group

TCN-T

4.250

(Market Call Minute.) Great management. Tough space. Fund management business in the US.

2011-12-21

HOLD

Plazacorp Retail Properties

PLZ-X

4.400

Great company and great management. Fairly valued at these levels. Suffers because it is not the most liquid name but expect liquidity will increase as they've had an increase in research coverage lately. 4.9% yield.

2011-12-21

HOLD

Amica Mature Lifestyles

ACC-T

7.800

(Market Call Minute.) Seniors housing player. Well-managed. Good position.

2011-12-21

BUY

Brookfield Properties

BPO-T

15.040

Highest quality real estate entity in Canada. Own class A office buildings in major urban centers with a heavy concentration in Manhattan, which is the rub. Depends on your call on Manhattan. If you think the economy is in for a tough time, it could be challenged. Wouldn't hesitate to own on a long-term basis and forget about it.

2011-09-26

BUY

Calloway REIT

CWT.UN-T

25.710

Have a very strategic relationship with Wal-Mart (WMT-N). Reasonably well valued. Very high occupancy. Recent management change was very strong.

2011-09-26

Comment

H&R Real Estate Inv Trust

HR.UN-T

21.540

Got into trouble a couple of years ago with the BOW building in Calgary but this is going to prove to be a home run. You can count on the distribution. Not enough ownership by the principals.

2011-09-26

STRONG BUY

InnVest Reit

INN.UN-T

4.180

Exclusively hotel sector. Got beat up significantly when the government changed the rules for REITs legislation with hotels no longer qualifying. Hotel REITs will basically become taxable. Huge yield of almost 12%. Net asset value is unchanged. Great properties in Western Canada.

2011-09-26

Comment

Chartwell Seniors housing

26.000

4th largest commercial REIT in North America. Have increasingly grown their foot print in the US. Strong management. Trades at a premium. Big beneficiary of Target (TGT-N) coming into Canada.

2011-09-26

BUY

Killam Properties Inc

KMP-T

10.520

Trading at a discount to NAV, which he feels is north of $11. This is one you can see sleep at night with.

2011-09-26

Comment

CSH.UN-T

7.270

Seniors housing space. Has been challenged in this space. Has some exposure in the US, which has been in minefield for seniors housing. Management is stabilized and solid. This is a sector you might be cautious of.

2011-09-26

BUY

4.480

Shopping space, secondary market. Good yield of over 10%. Larger, more liquid names have retained their values but the smaller ones like this had a drop in unit prices. Has been overdone.

2011-09-26

Comment

0.020

REITs. Commercial real estate sector in Canada has single digit vacancy rates in virtually every property type in every region of the country. Bodes well today, but the question is what is going to happen tomorrow. Supply/demand is probably better now than in the last 30 years.

2011-09-26

Comment

0.020

Evaluating REITs? P/E, Price to Book, NAV, etc? If you are going to use it in multiple, use “Price to Cash Flow”, but he prefers is Net Asset Value (NAV).

2011-09-26

DON'T BUY

Parkbridge Lifestyle Community

0.020

REIT convertible debentures? You get a fixed income stream with the opportunity to convert into the units. You are higher in the food chain if something goes wrong. They don't make a lot of sense he has a hard time rationalizing them. The underlying security typically pays a higher amount than the debenture.

2011-09-26

PAST TOP PICK

PRK-T (Dead)

7.300

(A Top Pick July 29/10. Up 42.12%.) Acquired Jan 12/11.

2011-09-26

Comment

Hungtingdon Capital

HNT-T

6.720

It is good value here. They've eliminated the distribution. Trading at a significant discount to NAV. Doesn't like their holdings of leased properties. Not a favourite.

2011-09-26

SELL

Whiterock REIT

WRK.UN-T

12.040

Doesn't like this REIT at all, basically because of management. Suspects that some of the net operating income from some of their recent acquisitions won't stand up over the test of time.

2011-09-26

TOP PICK

16.950

(A Top Pick July 29/10. Up 52.81%.) Management owns 40%. Value $25-$30. Apartments focused in Western Canada. No dividend. Grown from less than 300 units in 1998 to about 7500 today. True value creator. Worth $25-$30 a share.

2011-09-26

Comment

12.660

Grown significantly over the last year through acquisitions. Raised a lot of capital. Challenge is that incentive of management is to grow as opposed to creating shareholder value. This is going to change as they are going to internalize it. Trying to create as much pipeline is possible before year-end.

2011-09-26

PARTIAL SELL

InterRent REIT

IIP.UN-T

2.900

Very strong management. Challenge with this is that it is quite small and illiquid. They are value added guys, which he likes. Owns some apartments outside of the REIT, which he has encouraged them to move into the REIT. Has had a great move her and if you own, consider taking some profits.

2011-09-26

TOP PICK

Pure Industrial Real Estatetrust Trust

67.750

About 18 million square feet. Diversified with about 7000 apartments as well. Very small dividend. Independent appraisal values it at $137. They got all the Target (TGT-N) stores.

2011-09-26

HOLD

Partners REIT

PAR.UN-X

1.670

Not a favourite. Has external management. Trading around its NAV. Liquidity is not great.

2011-09-26

BUY

AAR.UN-X

3.850

Focus on the Canadian industrial space. Recently went through an internal management, which is good. Strong management. Properties are reasonably high quality. Decent yield.

2011-09-26

BUY

Leisureworld Senior Care Corp

LW-T

10.440

Likes this one. Fairly low risk sector. Nursing homes with a focus in Ontario. Strong operational management. Distribution is reliable.

2011-09-26

TOP PICK

TransGlobe Apartment REIT

0.860

(A Top Pick July 29/10. Up 26.87%.) Consolidating childcare centres and because of a huge shortage they are creating new centres. Just announced buying another 5 centres in Western Canada. Very cheap price.

2011-09-26

BUY

TGA.UN-T

11.090

Have internalized their management, which is a very strong positive. Relatively undervalued.

2011-09-26

BUY

Amica Mature Lifestyles

ACC-T

7.380

Seniors housing. Strong management, which owns a fair bit. Focused on quality. Unfortunately have not created a lot of shareholder value over the years but appear to be on the right track now.

2011-09-26

SHORT

Dundee International REIT

DI.UN-T

9.800

Sees a lot of headwinds. Has a heavy concentration of leases with Deutsche Post. Post offices globally have been contracting. Overvalue. This is a Short rather than a Buy.

2011-09-26

BUY

Canadian Apartment Properties

CAR.UN-T

19.270

A good name, to let you sleep at night. Across Canada with a disproportional amount of quality buildings in Toronto. Reliable high quality name. If looking for yield it's a good one.

2011-06-21

BUY

Cominar Real Estate Inv Tr

CUF.UN-T

22.070

Focused in Quebec where they have a dominant market position. Reasonably valued. You can count on the dividend.

2011-06-21

Comment

Dundee REIT

D.UN-T

32.580

Diversified commercial REIT. Significant presence in Western Canada which punished them a year or two ago. Have since diversified into Eastern Canada and at the same time the Alberta market has improved. Would like to see better alignment with the sponsers. Would rather own Dundee corp. (DC.A-T)which would have access to more things. Thinks it's a high quality name though.

2011-06-21

Comment

First Capital Realty

FCR-T

13.000

Best managed and best positioned public real-estate companies in Canada. Very strong alignment and ownership. CEO one of the great Canadian success stories in this space. Dividend is solid, they are value added, create space, new development. They focus on grocery store and pharmacy “anchors” in their shopping centers which creates stability. Fairly priced.

2011-06-21

BUY

InnVest Reit

INN.UN-T

6.760

Innvest is focused in the hotel center. Have some great properties in Western Canada in Major urban centers. Has a nice yield. Would not hesitate to own. If you own,hold.

2011-06-21

STRONG BUY

Chartwell Seniors housing

25.530

Outstanding. Big winner from the Target stores coming to Canada. Not necessarily their top pick, but a good pick. Have been opportunistic in the states, and will continue to be.

2011-06-21

SELL

CSH.UN-T

8.500

Seniors housing space. Have had some challenges and some management changes. Currently faced with some challenges in the US. Demographic profile favours them. Wouldn't be his favourite. Would prefer Leisure World (LW-T).

2011-06-21

PAST TOP PICK

5.910

(A Top Pick Jan 18/11. Up 11.78%.) Juicy yield of about 7.5%. Have a number of properties where there is an opportunity to redevelop and expand into higher-quality properties.

2011-06-21

Comment

0.020

REIT fundamentals in Canada are sound. Well managed companies all across the country. Supply and demand is the best he's seen in his career. Alberta's oil sands are a great asset, and is attracting foreign money. Opportunities are in Alberta. We are under retailed per square footage per person in this country.

2011-06-21

BUY

Crombie Real Estate Investment Trust

0.020

Real estate investors tend to value the yield more then they should. View the yield as a bonus, not as part of the value of the company. “Don't get sucked in by yield”

2011-06-21

BUY

Primaris Retail REIT

PMZ.UN-T

20.640

Going through a dynamic phase of positive change. In the Retail space, own shopping space, they were a big beneficiary of Target coming to Canada in the first round of announcements, solid management, have recently purchased.

2011-06-21

DON'T BUY

CRR.UN-T

13.240

Retail sector in eastern Canada. This would not be his favourite. Feels management is sleepy and there is deferred maintenance in their property. There are better names out there.

2011-06-21

SELL

Extendicare REIT

EXE.UN-T

10.870

Focus in the nursing center, in the US. A lot of litigation in this space, would rather stay in Canada.

2011-06-21

TOP PICK

16.490

(A Top Pick Jan 18/11. Up 6.67%.) Focused on the acquisition of under managed, beat up apartments. NAV is in the $25 range. Significantly undervalued and worth between $24-$30 a share. Had some operational challenges but bringing down their high vacancy rate. A steal at these prices.

2011-06-21

HOLD

13.900

Strong management, but not aligned to the degree they would like. External management and market has been waiting for them to internalize. Issued hundreds of millions of dollars. Would like to see management own more units. Overpaying their distribution, but will grow into it.

2011-06-21

SPECULATIVE BUY

Temple REIT

TR.UN-X

4.180

High risk/high reward. High dividend. Leveraged to Western Canada in Fort McMurry. Struggled in high cost debt, but have put much of that behind them. Recently started looking at it. A 1 trick pony so a bit more risk there.

2011-06-21

TOP PICK

Pure Industrial Real Estatetrust Trust

71.200

(A Top Pick Jan 18/11. Up 47.77%.) Presently trading at 7X price to cash flow multiple versus the sector of 15X. Owns 45% of units of Morguard and will go REIT (MRT.UN-T). Significant player in the asset management side. Very undervalued.

2011-06-21

BUY

AAR.UN-X

4.050

pure industrial reit Likes. They are internalizing their management, and doing so at no cost to the reit. They are focused exclusively in industrial so they are a pure play. They own.

2011-06-21

HOLD

Northwest Healthcare Property REIT

NWH.UN-T

12.160

Focused in medical office buildings exclusively. Strong management, yield of 6 ½ % Somewhat defensive. Likes the space and the sector.

2011-06-21

SELL

CANMARC REIT

CMQ.UN-T

12.820

Not a fan of this based on management and major shareholders. Prefers REITs with better alignment.

2011-06-21

BUY

Leisureworld Senior Care Corp

LW-T

10.600

Is a defensive name, has a good yield/income to it. Believes that the yield is sustainable. It's in the nursing home sector primarily, and expanding into the retirement home side. Focused in Canada. Board is strong. 8% yield.

2011-06-21

TOP PICK

Plazacorp Retail Properties

0.910

(Disclosure: he sits on the board.) Consolidating the child care industry and building new childcare centers across the country. Canada is last country to do this. Assembled a management team from Australia and US. Tripled their growth from a standing start. Analysts have targets at $1.75 to $3.00 a share. Thinks that is conservative.

2011-06-21

BUY

PLZ-X

4.250

Shopping centres in eastern Canada. Strong management that creates value as opposed to clipping coupons. There challenge is that it is not heavily traded.

2011-06-21

SELL

Kimco Realty Corp.

KIM-N

18.270

Large US shopping center REIT. Think management lost their way a few years ago and basically panicked during the credit crisis. Diluted shareholders by about 40% at the worst time. US is overvalued relative to Canada. If you own, consider moving to Canada where there are better returns and less risk.

2011-06-21

BUY

Brookfield Properties

BPO-T

17.580

Highest quality real estate name in North America. Outstanding team. Significant concentration in Manhattan (40-45% of net operating). A good name. It is fully valued.

2011-01-18

BUY

Canadian Apartment Properties

CAR.UN-T

17.950

Exclusive in the apartment sector. Highest Quality apartments. Exposure in Toronto. Low risk. Have been repositioning this REIT to be a long-term performer. It is a bit of a laggard.

2011-01-18

WEAK BUY

Cominar Real Estate Inv Tr

CUF.UN-T

21.770

Very comfortable as a long-term investment. Yield is solid, well managed. Dominant player in Quebec Real-estate. Won’t see any great growth because it is large and heavily concentrated in Quebec but no issue holding for 2-3 year period.

2011-01-18

BUY

First Capital Realty

FCR-T

15.490

Management team second to none. Big beneficiary of Target coming to Canada. They delivered, are conservative. In major urban centers.

2011-01-18

WEAK BUY

H&R Real Estate Inv Trust

HR.UN-T

20.000

Large cap, enjoys substantial liquidity. Good run. Strong management. Not the most aligned because it is externally managed, which he doesn’t like. Thinks you will see an increase in the distribution.

2011-01-18

BUY

InnVest Reit

INN.UN-T

7.020

Hotel sector. They are a leading indicator in the real estate sector because their tenants have one night leases. This is the best quality hotel REIT in Canada. Strong yield. Great properties in Western Canada.

2011-01-18

WEAK BUY

Canadian Real Estate Investment

REF.UN-T

32.410

Very high quality name. Office, Retail. Good properties, well managed. He has never owned it because it enjoys a significant premium to the sector. If you are looking for a reliable name it is one to own, but he has gone elsewhere.

2011-01-18

BUY

23.030

Grand Daddy of Canadian REITs. It is the number one the Americans look at when they look to Canada. Have expanded in the US. Big beneficiary of Target move into Canada. A name that has always traded at a premium and deserved it.

2011-01-18

BUY

Boardwalk REIT

BEI.UN-T

43.370

Largest residential REIT in Canada. CEO owns a lot of shares. Western Canada. They have a lot of cash on balance sheet. Payment of incentives to tenants is coming off. You can sleep at night with this name.

2011-01-18

TOP PICK

5.420

(Top Pick Nov 5/10, Up 4.92%) Only have 5 Zellers, but are the largest beneficiary of the Target conversion. Zellers is the highest percentage of rent of any company. At least 4 of the stores will convert to Target. New CEO from Smart Centers. Have re-development opportunities. A good yield (>8%)

2011-01-18

N/A

0.020

Fundamentals are sound in Real Estate. Job levels have rebounded in the real estate markets. Single digit vacancy rates, limited new supply. The US recognizes that Canada is the next best thing to the 53’rd state. Real estate companies are not over leveraged, good balance sheets, in good shape. This year you will see improvements in cash flow.

2011-01-18

TOP PICK

15.450

Trading at a deep discount to its net asset value. They are market creators. They look for beat up apartments, they go in and fix them up and re-tenant them. They re-finance them and they generate cash flow. They suffered from occupancy weakness a year ago. Believes their vacancy rate is still going lower.

2011-01-18

BUY

13.660

Thinks it is a dangerous decision to invest because of yield. He likes this one. Likes that they are focused on Western Canada. Appears that US properties are compelling.

2011-01-18

WEAK BUY

Temple REIT

TR.UN-X

4.140

They are in the hotel sector. Significant concentration in Fort McMurray and some other markets in Alberta. It is concentrated in an asset class as well as in a region. It is not a bad place to be in today.

2011-01-18

TOP PICK

Pure Industrial Real Estatetrust Trust

48.000

8’th largest real estate company in Canada. Largest unit holder in Morgard REIT. Trading at 45-55% of its net asset value – if you take out Morgard REIT, it is more like a 70% discount to net asset value. Deep value investment.

2011-01-18

BUY

AAR.UN-X

4.330

Industrial real estate. These folks know what they are doing. This class looks to him like it is rebounding.

2011-01-18

HOLD

Northwest Healthcare Property REIT

NWH.UN-T

12.100

Focused on medical office buildings. It is a unique asset class amongst Canadian REITS. He likes the space. It has had a nice run. A solid long-term hold but he calls it a hold right now since an acquisition of a building that many have some problems.

2011-01-18

PAST TOP PICK