Allied Properties REIT (AP.UN.TO)

A lot of investors are getting a little bit nervous of the sector but he thinks there is probably still more to go. As rates continue to go lower or stay low, it is enormously accretive in terms of free cash flow. Feels that this company has probably 5 years of 10% annual growth due to their unique development pipeline and the trend towards urbanization. Trading at a wider multiple than the group but it is merited. Balance sheet is in really good shape and their ratio is very low and they’ll probably be boosting their distribution.

Allied Properties (AP.UN-T) or Calloway (CWT.UN-T)? 2 completely different REITs so you could buy both of them if you wanted. Expect that analysts will increase their target prices to the $32-$33 range. Great quality name. Exposed brick and beam finishes, Class I real estate. Quality management, quality assets, low payout and low leverage. Try to buy below $31 in order to get a 15% total return. 4.2% yield.

Everybody is yield starved so this is the area to focus on. Canadian REITs have a very low cost to capital, which is why they are growing nicely. This one has a very strong portfolio of Class 1 real estate, half of it in Toronto and are going through a process to intensify the use of it. Thinks they can get 10% distribution growth. 4.4% dividend.

This is a unique Canadian REIT that has wonderful assets in major cities, Montréal and Toronto particularly that are very well located. Doing a join venture with RioCan (REI.UN-T) which is progressive and positive. Stock has moved a lot and is pricey, but over time you will do well because they are doing the right stuff. If you are a long-term investor, this is a Buy.