Artis Real Estate Investment Trust (AX.UN.TO)

Cominar (CUF.UN-T) versus Artis (AX.UN-T)? REITs have come off 6%-7% and you are probably getting a 5%-7% yield. Although there is a lot of talk of interest rates going higher, he doesn’t see them going that high and this pull back in the REIT area gives you a really good buying opportunity.

Has pulled back and offers great value. 12 times earnings and should be 15. US exposure, western Canada, higher than average yield. Diversified asset base.

(Market Call Minute) Lots of room for rents and occupancy to go up. Deep value. Office buildings in Suburban space. Above average yield but more risk at stake.

(Market Call Minute.) Below market valuation right now. Still has growth from acquisitions.

Still buying. Based out west, but US$ should appreciate giving some upward movement. In general he has been trimming REITs because they went up so much but in setting up a new one he adds this.

50% office 25% industrial, 25% retail, 6.5 % yield

90% of their funds come from their operation.

Mentioned as an alternative to RIE.

Not the highest quality portfolio, but as growth continues the type A properties will be filled up, then will spill over to B and C type properties, so this company will lag a bit.

They have been criticized for growing aggressively through acquisition, but in hindsight it looks like it was a good move.

(Market Call Minute) Consolidation play in western Canadian Real Estate.

(A Top Pick April 3/12. Up 10.04%.)

A value stock. Trading at about $14.50 compared to the group of about $16.50. Just landed an investment grade rating which gives them access to a lot more funding, which should help them boost their acquisitions. Have just increased their exposure to the US by about 30%. In place rents are about 30% below market.

Owned for quite some time. Management team does not get enough credit. Brought down payout ratio below 100%. 6.75% yield. 20% of assets are in the US and have likely appreciated. Talking about increasing US assets to 30% or portfolio.

REITs are being purchased by pension funds and private equity funds because they want the cash flow. This company has a great portfolio and might get acquired. Yield of 6.7%.

Pays a pretty good dividend and is why you would be holding it. Has had periods of time when it sold off and it tends to recover. It is trying to break out but has not yet. No major danger. Hold it and collect your dividend.

Trades at a discount to NAV. Owns a lot of office properties outside of central business districts. Usually, in an economic recovery, occupancy CBD office space moves up first, followed by a big increase in CBD rents that will eventually spill over into suburban rents. Hasn’t happened yet for this company so there is still some juice in the portfolio. You should get the benefit of those higher rental rates and a bit of uplift in rental occupancy. Should do well in the next 12 months. A bit of a higher risk proposition.

Just bought recently for one of his clients’. Great company. Good yield which is safe. Great complement to his client’s holdings in H&R Real Estate (HR.UN-T) and Chartwell (CSH.UN-T).