Javed Mirza Choice Properties REIT CHP.UN-T TOP PICK Jul 12, 2024

Rent increases are fairly low, which Loblaw negotiated to help keep prices low. On the flipside, you get the stability of having Loblaw as the major tenant. Residential development opportunities on those sites, but that takes a while. Not exciting, but collect the dividend and sleep at night. Conservatively managed, very stable. Yield is ~5-5.5%.

He sees better opportunities in smaller-cap names. 

It broke out in mid July, but declined starting in September due to interest rates. He expects interest rates to actually rise in 2025 in the US.

Very defensive, trades at nice discount. Loblaw is a safe and secure tenant. Growing part of portfolio is industrial warehousing, a sector he's bullish on. Safe distribution. Very comfortable owing for next 12-18 months, as a broader REIT recovery should be near.

Core holding in portfolio. Tenants include Loblaws and Shoppers Drug market which is very good for stable cash flow. Excellent pick for long term investors (10 years or more). Expecting further development in industrial properties. Lots of room for the company to experience growth. 

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.

Real estate arm of WN, which is the parent of Loblaw. Solid, conservative income name; mainly because primary tenant is Loblaw, a very consistent business that isn't going anywhere. Loblaw is actually expanding its discount stores, and CHP.UN would benefit. Pretty safe income stream.

She owns Loblaw for clients. 

Grocery-anchored retail, and a big industrial portfolio. Core retail has been a great sector, with almost no new construction but the population keeps growing. Landlords really have the advantage over tenants right now, growing rents rapidly. 

His company uses a base system which uses quantitative, technical and fundamental factors to rank stocks. In general the free cash flow average is 3.7%. The following benchmark may be useful: A Return on Capital of 1.1% is 1/3 of Canadian government bonds. CHP's dividend is 5.1% with a 73% payout ratio. Other stocks rank better on a total return basis.