Derek Warren Agellan Commercial REIT ACR.UN-T HOLD Nov 17, 2016

(Market Call Minute) Interesting holding as they unearth value in their portfolio.

A cross border REIT. Thinks there are some very interesting property valuation opportunities they have on the eastern side of Toronto. All of this takes a lot of time. You’ll have to be patient, so focus on your 8% dividend, and over time you’ll see some accretion opportunities.

A cross boarder REIT. Good management team. The yield is safe.

Yield of around 8.5% and have about a 90% payout ratio, which is not overaggressive. Just sold 2 Toronto properties Valleywood and Parkway, and they want to focus on the US in office and industrial. There has been a bit of a recovery in the share price. They are more focused on their strategy now. He thinks we are at the end of the bull market in the REIT space, so he can’t get excited about this type of investment.

They do not have a buy and hold strategy, so you have to get comfortable that management will aggressively be churning the portfolio. Have recently expressed interest in selling their Canadian assets to put the money to work in the US. If there is a drag from selling to deploying, then the dividend is a little bit strained, but at this point the dividend is fully covered. He is watching this one from the sidelines.

Acquired most of their US portfolio while the Cdn$ was still at a high level. The depreciation of the dollar has been very beneficial for them, which hasn’t quite shown up in the price yet. The real trigger for this is if they can start to sell down some of their Canadian assets and focus more exclusively on the US.

They are going to be turning their portfolio for yield. You might have to wait a few months for anything to happen.

It is a horse trader. They are always flipping properties. He prefers to look at the value of a steady cash flow going forward. Eventually it will have a catalyst to move the stock price forward.

Owns assets both in Canada and the US. If you are buying something for income, he eventually thinks this company will be sold. Thinks you could do quite well.