Stock price when the opinion was issued
BEI.UN is still considered an 'oil sensitive' REIT because of its Alberta focus. The energy sector has been quite weak, and this is likely a big reason for its drop from $91/unit. But it is still up 8% YTD and 22% over one year. The last quarter was fine, but its relatively low yield of 1.87% and its higher valuation can limit investor interest at times. We would be OK buying for income and growth.
Unlock Premium - Try 5i Free
Owns shares in business. Portfolio includes properties in Alberta which is not rent controlled. Recent share price sell-off not a concern. Overall is a high quality business. Concern around tariffs not a worry. Would recommend buying. Alberta is a great place to do business, and is expected to keep growing (good for business).
Immigration is not actually being lowered, it's more that we're returning to nice, stable growth. A lot of these people are going to move to Alberta, where BEI.UN has the majority of its properties. A lot of Ontario is moving to Alberta as well. The pro-energy trend will also benefit Alberta.
In Ontario it can take 6-8 years to get permits to build an apartment building, 2 years to build, and then you're faced with rent control. Alberta is much more friendly in this regard; so rents are cheaper, and there are more rental units.
Our PAST TOP PICK with BEI.UN has triggered its stop at $64. To remain disciplined, we recommend covering the position at this time. This will result in a net investment gain of 24%, when combined with previous recommendations.