Boardwalk REIT (BEI.UN.TO)

Sold his holdings as soon as he saw the 5% vacancy rate occurring in Calgary. These are great managers. They own 30% of the float, so if you want to be aligned with the owners, this is the REIT to own. If you don’t have exposure to Alberta, this would be a great company to own.

Has been very good traditionally at maintaining occupancy, and will do so at the expense of possibly losing some rents. When they release earnings, you want to be looking for 2 numbers. What is occupancy and what are their earnings doing? Expects there has to be a correction in Alberta Apartments. Stock has gone from $65 down to the low $40, which he thinks is overdone. Has been buying back into the stock below $43. Dividend yield of about 4.8%.

(Top Pick Jan 20/15, Down 20.27%) He sold out at $53. Management is second to none. It is a very difficult market. The numbers were okay last quarter, but it will be very difficult for them. They will be impacted by the spike in vacancy rates.

REITs is an area where he is staying on the sidelines because he thinks they will be interest sensitive. His company has this as a Sector Perform with a $59 target. When looking at REITs, look at the geographical concentration of their properties. In this case they are in Alberta. At some point you are going to get a good rebound out of Alberta, but he doesn’t know when that is going to come.

People are running away from Alberta, but not him. They have apartment blocks in Calgary and Edmonton. A well managed company. They will pay a special $1 distribution on Dec 1. He is prepared to hold it. He thinks it will recover as Alberta recovers.

This is a big quarter because of the sentiment regarding Calgary. He has been sitting on the sidelines, trimming mostly. Wait a few hours and see what happens tomorrow morning. Keep an eye on tenancy inducements.

He was buying at around $54. Wait until they report their 3^rd quarter results giving you a bit more insight as to what next year is going to look like. This is low income Housing and should be defensive, and in a worst-case scenario, there should be an increase in occupancy, with a little bit of pressure on rents. At $50-$51 it represents a discount to NAV which is a really compelling Buy. Management is selling off properties, such as eastern Canada, and are using the proceeds to Buy back stocks.

There is a real dichotomy on what is going to happen in Calgary. He likes this REIT. The reality is that we are starting to see job losses that are going to affect rent growth. That shouldn’t affect the pricing to this extent, so he is continuing to hold his position. They are doing some development and are buying back stock.

Large Alberta portfolio. He does not think there is as much risk on it as the market is pricing. At these levels it is pricing in massive vacancies. He thinks it is still a safe name. He is overweight.

It is great news if you can take profit off the table. It is exposed to the energy patch, overly punished and at a discount to NAV. It needs a more robust energy environment. It is insulated from rising rates. Hold and take the yield.

You have to recognize that this is focused in Alberta. It has been very, very successful. He would be somewhat cautious about anything in the property real estate area. You are already seeing house prices beginning to decline. There may be some rental problems because of migration out of the province.

In spite of the oil problems, numbers came out recently and they were fine. People living in Calgary will continue to live there, and perhaps are more inclined to continue renting an apartment as opposed to buying a house. This is a real opportunity to buy one of Canada’s top-performing REITs. Dividend yield of 5.83%.

This is kind of a giant in the rental situation. Very strong record. 3.5% dividend yield.

Very good management, very good balance sheet and has the ability to weather through different oil cycles, which they have done through their existence. There will be slower growth in rents in Alberta. He feels that if there is job pressure, wage pressure, etc. that will affect more of the housing market than the apartment market. This is a good Buy at these levels.

Has been unfairly hit. Incredibly conservative. Doesn’t give as high a yield as Riocan (REI.UN-T), but they have the ability to buy back stock. Have been hurt by about 10%-15% because of Alberta. This is cheap and is probably worth $60-$70 once you look through this cycle.