The Panic-Proof Portfolio (Stockchase Research) Choice Properties REIT CHP.UN-T PAST TOP PICK Oct 24, 2024

Excellent chart that is setting up well in this economic cycle. Relative strength is improving versus the TSX Composite. Showing signs of institutional accumulation. Positives that indicate the technical profiles of the stock are strengthening, and are supportive of further upside.

REIT companies getting better with lower interest rates. Would recommend buying. 

Holds quality Loblaw assets and industrial ones mostly located in cities. Same-store net income growth isn't super, but good. It won't shoot the lights out, but you can buy it comfortably for your grandmother.

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.