Steve Belisle Pure Industrial Real Estatetrust Trust AAR.UN-T COMMENT Sep 08, 2016

(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.

They have had the ability to grow and this is why they issued units. Industrial space is the hot commodity right now. 17 times price to AFFO so it is on the higher side.

He is a large shareholder. He is continuing to hold it but is concerned about supply. REITs have staggered debt maturities.

Things have changed. E-Commerce and pot have benefited them. It has done extremely well. He is interested in the name. Management has done a good job of getting growth there. Their biggest risk is that their biggest customer is a significant portion of their business.

The trend that has been pushing names like this up, is the e-commerce trend. This is a fantastic company, a little pricey right now. It has done a great job of aligning itself with FedEx. There is going to be a point where that exhausts itself, which is when you can expect the price to pull back. However, there is no reason why you would want to sell a company that is doing so well and was such a good future going forward. It has brought its debt down and its earnings are very steady, and it could be very much a perpetual hold.

A sector that sold off a few years ago, as people were thinking that with less manufacturing there was less industry. Since then we have had a major change in how people shop. There is a lot of online shopping, and this company’s holdings have become hubs for a lot of storage for businesses. One of the leaders in this space, and probably one of the best names in the industrial space.

He likes the industrial REIT space. A wonderful way to play Amazon (AMZN-Q), which increasingly needs warehouses closer and closer to the customer. This REIT provides that kind of space. The recent weakness has been because of recent acquisitions and interest rate fears.

He likes this company. Real estate has headwinds, but this company has a tailwind because it is industrial. Also, they are buying assets in the US which has extensive corridors with a population base where there would be some desired locations to own in the Midwest and in secondary cities. Yield is around 5%. They are pretty good at what they do. He would like to own this, but at the right price.

Industrial properties. It is more cyclical and more tied to the business cycle. As business gets better, it will likely be able to raise rents. It has now pulled back to the 150-day moving average, which is a good place to buy it. Dividend yield of 4.8% is pretty attractive.

Being acquired by Blackstone. Hold for the dividends for the next 2 quarters or Sell for $8.10? It depends. If you have a good idea, Sell. If not, be patient.