Viewing Expert Derek Warren | StockChase
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Compiling comments that experts make about stocks while on public TV.

Viewing Expert

Derek Warren , Asst Vice President

Lincluden Investment Mgmnt


Date Signal Chart Symbol Company Opinion Price
2017-02-03 N/A Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

REITs. It is hard to find screaming bargains as the sector looks pretty fairly valued right now, especially in Canada. He is not seeing a lot of income growth, so they are not able to raise the rents a lot. There is also concern of the interest rates. The yield is going to make up most of your return going forward. The market has been very counterintuitive and very challenging for investors. He is seeing more value in retail REITs in the US. If you can isolate the locations you think will be the “go to” shopping centres, there are good opportunities there. Simon Property Group (SPG-N) is a REIT that seems to pick these up.

There are a couple of Trump risks that do affect REITs in the US. There is the 1031 exchange which allows a sale of the property and then the immediate reinvestment of the gains into another property, with no tax having to be paid. This is a great benefit to Canadian REITs that are buying US properties. There is talk that it will be repealed, which will change the game significantly. Also, if Trump reduces overall taxes, there is a concern that it will put downward pressure on US REITs.


Price:
$0.020
Subject:
REITs & REAL ESTATE STOCKS
Bias:
CAUTIOUS
Owned:
_N/A
2017-02-03 PAST TOP PICK Must be logged in to use chart AAR.UN-T Pure Industrial Real Estatetrust Trust

(A Top Pick Dec 18/15. Up 42.72%.) One of the largest tenants is FedEx. Management has done an excellent job of diversifying themselves, even over the sub, subcategories within industrials. They have also recognized that it is important to reduce overall leverage.


Price:
$5.780
Subject:
REITs & REAL ESTATE STOCKS
Bias:
CAUTIOUS
Owned:
Yes
2017-02-03 COMMENT Must be logged in to use chart AX.UN-T Artis Real Estate Investment Trust

This gets you into a large Calgary exposure. This REIT has recognized that and has been expanding aggressively into the US. There are also conversations that they will be selling some of their Calgary office. If you have a very long time horizon, and you like the yield, it might be worth waiting through. 8.7% yield.


Price:
$12.460
Subject:
REITs & REAL ESTATE STOCKS
Bias:
CAUTIOUS
Owned:
No
2017-02-03 COMMENT Must be logged in to use chart BOX.UN-T Brookfield Office Properties Ltd

There is a bid for the parent company to take this private. Brookfield has done this many times. They put in one bid, and then they sweeten it later. He doesn’t think they are going to sweeten this one. If you have a better place for the money, he thinks you would be fine taking the superior bid and redeploy the money.


Price:
$31.350
Subject:
REITs & REAL ESTATE STOCKS
Bias:
CAUTIOUS
Owned:
Unknown
2017-02-03 COMMENT Must be logged in to use chart BPY.UN-T Brookfield Property Partners

If you have a long-term time horizon, this is doing very well. It continues to surprise on the upside. About 18% of its balance sheet as exposure to London, but they have hedged off most of the currency exposure. This is still a good place to be. Most of their exposure is in the New York office which is a great place to be.


Price:
$29.040
Subject:
REITs & REAL ESTATE STOCKS
Bias:
CAUTIOUS
Owned:
Unknown
2017-02-03 PAST TOP PICK Must be logged in to use chart CAR.UN-T Canadian Apartment Properties

(A Top Pick Dec 18/15. Up 22.55%.) The minute you put in mortgage reforms and try to avoid people overextending themselves on a house, they are going to rent. He is a big fan of renting. It has a great role in society. This is the largest landlord in Ontario, and benefits from that.


Price:
$31.900
Subject:
REITs & REAL ESTATE STOCKS
Bias:
CAUTIOUS
Owned:
Yes
2017-02-03 COMMENT Must be logged in to use chart CRR.UN-T Crombie Real Estate Investment Trust

Because Sobey’s is the main tenant, there is a lot of looking at the Empire stock right now. That has put pressure on the real estate. The concern is that the Empire Group, in order to raise money to fix their grocery business, will sell the rest of their real estate down into Crombie, which would mean a very large equity issue. Because of that, he is not there right now. He is waiting to see what happens.


Price:
$13.500
Subject:
REITs & REAL ESTATE STOCKS
Bias:
CAUTIOUS
Owned:
No
2017-02-03 BUY Must be logged in to use chart CSH.UN-T Chartwell Seniors Housing

He likes this very much. A low risk company. Not the cheapest, but it’s a stock that usually trades at a premium, deservedly so. This is an OK place to enter. You have the demographics behind it and a large retiring population. There is a great real estate market, so seniors’ homes can be sold. Yield of 3.6%.


Price:
$15.380
Subject:
REITs & REAL ESTATE STOCKS
Bias:
CAUTIOUS
Owned:
Unknown
2017-02-03 COMMENT Must be logged in to use chart D.UN-T Dream Office REIT

Focused on the office sector, and has a large Calgary and Edmonton portfolio. Recently sold $200 million of Calgary office but still have the Edmonton exposure. Also, sold their Kitchener/Waterloo exposure. They will continue to sell assets and focus on their Class A office, especially in the Toronto area. REITs in transition are always challenging. If you have held this for some time, there is no point in selling now. It has actually done quite well recently. If they cut the dividend, that will actually be very interesting, as you have a higher quality REIT with a more reasonable payout. Dividend yield of 7.6%.


Price:
$19.820
Subject:
REITs & REAL ESTATE STOCKS
Bias:
CAUTIOUS
Owned:
Unknown
2017-02-03 COMMENT Must be logged in to use chart DIR.UN-T Dream Industrial REIT

He prefers the industrial name just because he likes the industrial market. Because there is a bit of taint against the Dream Empire, this has traded as a discount. However, the properties themselves are performing alright. Because of the Amazon phenomenon, some of the smaller industrial plots closer to downtown cores are being utilized more often by delivery companies to create faster deliveries.


Price:
$8.390
Subject:
REITs & REAL ESTATE STOCKS
Bias:
CAUTIOUS
Owned:
Unknown
2017-02-03 TOP PICK Must be logged in to use chart FCR-T First Capital Realty

A retail REIT basically focused on Canada’s wealthiest neighbourhoods. They are always focused on the best locations, the best corners. Retail is facing some difficulties, but retailers are not just going to close up all their stores; the best stores in the best locations are going to continue to do well. This offers growth. Because of retail pressures, the stock has sold off giving an interesting opportunity. A compelling return over the next year. Dividend yield of 4.11%. (Analysts’ price target is $23.63.)


Price:
$20.890
Subject:
REITs & REAL ESTATE STOCKS
Bias:
CAUTIOUS
Owned:
Yes
2017-02-03 COMMENT Must be logged in to use chart HOT.UN-T American Hotel Income Properties

Tricon Capital Group (TCN-T) or American Hotel Income (HOT.UN-T)? He likes Tricon, but it is not really an income play, it is a growth play.


Price:
$10.540
Subject:
REITs & REAL ESTATE STOCKS
Bias:
CAUTIOUS
Owned:
Yes
2017-02-03 PAST TOP PICK Must be logged in to use chart HR.UN-T H&R Real Estate Inv Trust

(A Top Pick Dec 18/15. Up 21.32%.) This expanded into the US in the last year, so it gives you a diversified play. At the time, it was trading at a significant discount, and that discount has narrowed somewhat. He is also a little concerned as it acquired Primaris Retail REIT, so they have retail exposure. Yield of about 6%.


Price:
$22.750
Subject:
REITs & REAL ESTATE STOCKS
Bias:
CAUTIOUS
Owned:
Yes
2017-02-03 WAIT Must be logged in to use chart IIP.UN-T InterRent REIT

He likes management. Their ability to increase distributions will be there as their more aggressive development plan starts kicking in. They have a number of large-scale developments, which have taken a bit longer, but the dividend will increase over time. More importantly is the amount of growth you can get in earnings when you are able to buy something broken and fix it. You are paying for broken, but you are getting fixed in the end. Returns are very strong. Thinks this will be issuing equity sometime in 2017, so you may want to wait for the equity deal. Dividend yield of 3.1%.


Price:
$7.700
Subject:
REITs & REAL ESTATE STOCKS
Bias:
CAUTIOUS
Owned:
Yes
2017-02-03 TOP PICK Must be logged in to use chart KMP.UN-T Killam Properties Inc

In the Maritimes, but they have been developing in Ontario, and have recently been expanding into Alberta as well. He likes the apartment REITs. They have all kind of run, however this one is at a significant discount and doing very well. It has been lowering its debt. They still have a convertible outstanding that should be paid off, so he does expect an equity offering sometime in the next 6 months or so. Dividend yield of 4.87%. (Analysts’ price target is $13.80.)


Price:
$12.430
Subject:
REITs & REAL ESTATE STOCKS
Bias:
CAUTIOUS
Owned:
Yes
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