Stock price when the opinion was issued
In his balanced portfolio to provide income rather than growth. Not the greatest ride for REITs the last few years. Not seeing the pickup in turnover needed in multi-family residential, people need to leave so you can get higher rents. Lots of buildings are under rent control. Yet maintenance costs keep going up.
Cleaned up balance sheet, sold some assets. Future depends on more turnover, which won't happen until interest rates are at a more attractive level (which encourages more people to start buying houses).
Generally, caution is warranted in apartments. Stocks are now coming into interesting levels. Great population growth, but could turn negative next year. Very good portfolio. Selling older buildings and buying new from developers. So cashflow growth should improve -- buildings won't need such extensive repairs, plus new buildings are not subject to rent control.
Sale of manufactured housing communities business will give them lots of cash. Look for share buybacks. Long term, feels good about multi-family residential. Just sit through the mid-term volatility.
CHP.UN is far more defensive. Great portfolio, with about 20% in industrial warehouse space (a sector he's quite bullish on). If you want defense, this is your better bet.
With CAR.UN, you have to think about affordability and how defensive is the tenant base and the cashflow from that base. Great portfolio, with higher concentration in Ontario -- something to keep in mind if you're concerned about tariffs and loss of manufacturing jobs in southwestern Ontario. See his Top Picks.
The pay around a 3% dividend, so considers this an income stock. The private apartment rental market they're in is very tight. Half their apartments are in Ontario which has a rent increase cap, so rent rises only 2.5% upon renewal, but over 20% if a tenant leaves. So there's room to raise rental rates to market rates. Also, they're good at selling pre-2018 properties and buying post-2018 ones which don't have rent control.
(Analysts’ price target is $56.79)