CT Real Estate Investment (CRT.UN.TO)

The problem with this is the valuation. Has recommended this in the past, and it has continued to go up and up and up. He continued trimming until he now has none left. Would like to see it about $1 cheaper before going back in.

Great company. Stock has done very, very well. They own Canadian Tire properties across Canada. Have shown above average growth. This has been one of the top performers in Canada. Has been trimming his holdings as it has become too expensive. He would buy this on a pullback.

He is leaning a bit defensive here. Great real estate team. This is a core name with him. There are opportunities for growth. It is a good, stable portfolio. You get the income, but not the volatility. They might add more retail to their properties.

He is a big fan of this one. Their story is very simple. Canadian Tire is over 97% of their assets, and they have opportunities to buy more Canadian Tires as they adjust their real estate.

Canadian Tire. Predominantly leased by Canadian Tire. Continues to be held 80% by Canadian Tire Corp. A sustainable distribution ratio of about 90%. If you look at single tenant REITs, the growth is not as good as a more diversified REIT. They should get 3% AFFO growth. If they developed on their redevelopment acquisitions it could be more. Lease terms are 8-9 years so there is not a lot of risk to their cash flows. But after that things could change.

The negative on this is that you have a REIT that has the underlying stores as 80%-90% of your business, which probably means that it is less of a growth vehicle than some of the others, which are a bit smaller, that are trying to grow. Thinks of this as a yield hold only.

Has some good potential. A little expensive at the $11 range, but on any pullbacks, he would Buy. 5.86% dividend yield.

He is a big fan of the real estate. Took a big position. It is a one client operation - Canadian Tire. Now they are looking at neighbouring properties with shops that are where they are because Canadian Tire is next door and people go there.

He would be careful about these types of REITs in that you are dealing with almost non-arms length negotiations between the REIT and the rent it gets from the tenants. The company is going to maximize the benefits of that to their advantage. He would also be concerned if rates begin to rise as REITs are always somewhat interest sensitive.