Chartwell Retirement Residences (CSH.UN.TO)

(Top Pick May 30/16, Up 4.54%) It is defensive and dividend paying. He will be out by October/November. It is a seasonal issue.

(A Top Pick July 14/15. Up 41.47%.) A senior housing operator. Sold off their US assets, and the money they made on that has been reinvested in Canada. Post the recession, the occupancy rate of a lot of their homes were lower, because of the overbuilding of seniors housing. That is now bouncing back up. Dividend yield of about 3.5%.

(Market Call Minute) The demographics are behind them. They execute well and make nice transactions. Nice technically as well.

This is expensive, because it is expensive to live there. Fabulous facilities. Has had a great run. You have to pay a premium when there is nothing else like it in Canada.

Chart shows a very strong upward trend since 2009. It recently hit a new 52 week high. This is in a good sector and it has growth.

This has gone straight up in the last year. With volumes being what they are, there is no reason to Sell this. It looks like a stock that is ready to go higher.

REITs in general have been pretty good. He cherry picked this one as the most defensive. There is a little breakout and so he bought it. He likes the yield and the defensiveness.

Seasonally the stock has a tendency to move very well like most REITs, from March through until about October. Technically it is currently in an uptrend and is outperforming the market.

Just released their numbers last night and hit the ball out of the park. Thinks it is fully valued at this level. Earnings and occupancy have been very strong. Very good operators.

(A Top Pick May 4/15. Up 19.23%.) A lot of the REITs were under pressure, because of fear of higher interest rates. Still some room for growth. A great industry with good demographics behind it. Still a Buy.

(Owns the convertible debentures.) Not a lot of growth, but a good dividend. They have done a really good job. They went into the US at the right time, rode it up, sold it, and used the funds to buy Canadian, so it has had a really nice run for the last 5-7 years. Thinks growth will slow from here. Demographically it is in a good space. He would guess you would get total returns in the 6%-8% range, compound.

The largest seniors housing operator in Canada. Provides a nice yield of 4%. This is an industry where there is good secular growth and tends to be not as cyclical. Sold off their US operations about a year ago, and redeployed that capital back into the US to grow their presence. Recently announced an acquisition of another retirement home and have been doing that for the last few months. They are slowly starting to increase their dividend. 16% of the population is 65 and older, and in 15 years, they estimate it will be 25%.

It broke out and that was extremely bullish. He likes the REIT space. A lot of them are breaking out. It may be overbought because of the parabolic move and if it pulled back it would be a fantastic entry point.

Extendicare (EXE-T) or Chartwell (CSH.UN-T)? This has been a very good performing stock, and thinks it is going to continue to do well. It is based on an aging demographics trend. This is the one he would prefer.

Had owned this last year, and conceptually had liked where they were placed because of aging population. Did a great sale of their US assets. He has trouble with the valuation, where it is basically trading at 14-15X operating cash flow. A lot of that is based on capitalization rates they use in real estate. Because interest rates are low, capitalization rates are low. Wouldn’t worry about the safety of the payout, but to him, it is a high valuation. He would rather take more of a gamble and buy some of the distressed players like Artis Real Estate Investment Trust (AX.UN-T) that has a 9% yield. This one has a dividend yield of 3.9%.