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

7%. Sustainable distribution. Diversified. 20% in US. Fan of US strategy. They know those markets well. Doesn’t expect a distribution increase. Thinks people are waiting to see the ratio and leverage come down. He feels they are focused on this and will execute. 14% upside in price.

Management team does a very decent job. Own a good deal of properties down in Minneapolis as well as in Phoenix. Feels this will be an area of growth for them.

Focused mainly in the Midwest. Very good executer. Likes management. Feels the dividend is safe and that there is some growth potential. Relatively cheap compared to their peer group. Good management.

You are just starting to see a markup in their rents. Decent quality REIT but some of the things they own will lag. Payout is close to 100% and hopefully will come down by 2013. It should be safe. There are better REITs but you are ok holding this.

REITs have obviously had their big moves up but you can still get a good combination of capital appreciation and income. This is a good name. Has a comp annual growth rate of around 7% which exceeds the diversified peer average of around 4% but trades at a small discount. 55% of their portfolio is in the office market out West, which is a good place to be. Balance sheet is steadily improving. Target of $17.50.

Management keeps on surprising everyone. Has added to his positions recently. Payout ratio have been a little bit high, as has debt but they have worked them down. He is not worried about the distribution coming down.

Uptrend has been broken with the little bit of a possible topping formation taking place. You don’t want to see it breaking the neckline of around $16. If you own, you can Hold but you don’t want to see the neckline broken.

Would buy near this level. Thinks he would like it around $15.98, maybe at the 200 day moving average. Have an annual compounded growth rate of near 7%, which exceeds their diversified peers and yet it trades at a multiple slightly below market. 14X versus 16.5X for the market. Have more of a focus on Western Canada with 60% of their portfolio being mainly office. Have had rental growth of about 6.6%.

Has 2 REITs and if he were going to have a 3^rd, it would be this one. Given the interest rate outlook for 2-3 years, while REITs are fully priced, people that are looking for yields will go to a REIT like this. Well diversified. Have done a pretty good job of matching their mortgage debt with the term of their leases. 6.6% yield.

Interest rates won't increase for a year. REITs can refinance debt at lower rates and benefit. Real Estate is a good hedge against inflation also. Inflation allows you to increase rents. So the infusion of capital into the system should not be bad for REITs. In Western Canada you have above average wage and population growth and AX should be able to raise rents significantly over the next 12 months.

Has liked this one for a long time. Good diversification of the underlying portfolio over the last few years. Because of the valuation it currently commands, he would recommend getting out of this. On a 10%-15% pullback, it looks interesting.

Not aware of any proposed change to structure. Caller said it was becoming closed end. He thinks it is at the lower end of the quality end of the space. Issued a lot of equity over the last year or so. Would prefer a Canadian REIT. Better than the growth-by-acquisition model.

Some people love it as the opportunity and some people say it is one that is going to have more issues. Very diversified portfolio. Still has a bit of a payout ratio to deal with. You are fine with this name.