Chartwell Retirement Residences (CSH.UN.TO)

The leader in seniors housing in Canada. The stock has done quite well. It’s a combination of interest rates moderating and less inflation concerns and the general weaker economy. REITs generally have done quite well in the past month. The company was restructuring their US operations and focusing on certain regions, selling off some assets and reinvesting in Canada. Thinks they are at a point now where they should be able to start increasing distributions in the next year. Likes the demographics of an older population creating an increasing demand for seniors housing. Wait for a pullback below $12. Dividend yield of 4.3%.

Has liked this consistently for the last several years. Going forward, it is a company that is going to benefit from an aging population. A headwind for the stock, prior to 2014, has been an excess supply. Supply exceeded demand from 2011 to 2013. 2014 was the 1^st year where demand exceeded supply. Going forward, because you are going to have lower supply, you should see occupancy tick higher, hopefully in the lower 90%s, which will really drive cash flow growth. Thinks it is a potential prime acquisition candidate for a US player that may want to enter into the Canadian market.

Likes it a lot. It is a great company. If interest rates rise quickly it would be a problem, but you should be comfortable with the kind of income you are getting today. They are good operators. The demographics are behind them. There is a big push into occupancy. There has been American interest in these and it gives you down side protection.

A seniors’ home operator, and she likes that space because of aging demographics. The seniors population in Canada is going to be growing at a faster rate than the general population over the next 10 years. Also, seniors are living longer and need more care. Before the 2008 recession, occupancy was in the 94%-95% range, and currently is at around 90%. So there is no reason why occupancy can’t improve. A nice place to hide to get the dividend yield of 4.6%.

It continues to do well. It would run into trouble in a rising rate environment. It should continue with slow growth going forward.

Likes the demographic tailwinds. If rates are going to rise, you want to own a REIT with a low payout ratio, a high growth rate, improving leverage, organic growth and one that can focus on developments. This company displays all of this. It is also a potential takeover target.

This is in the seniors’ home sector. Has great demographics, as older ones need more care. Plus there is a lot of US interest in this space. Great name.

The leading seniors housing operator in Canada. About 80% of their suites are in Canada with 20% in US. Have refocused by selling off non-core properties in the US and putting the money back into Canada. She likes the demographics. We are all living longer. The population of seniors, 75+, is going to be growing at 3 times the general population rate. The penetration of seniors housing is quite low. Yield of 4.66%, but they are at the point where they could be increasing this in the next year.

A good story. He is modeling 7% compounded annual growth. Sees a strong 2nd half coming from ramped up sales and marketing. Have had this really nice strategy of recycling capital from non-core properties and putting them into higher quality, which should continue to drive multiple expansion. It is a potential takeover target. Long term tailwinds of seniors’ assisted living. He would try to buy it on a bit of a pullback.

A great demographic play. The population in that range will double over the next 10 years. In the last 4 years we have seen a 10% increase in costs. This year we should see a greater increase in demand growth than supply growth.

She likes it. One of the better REITS to buy in this environment. Less interest rate sensitive. They can pass through inflation increases to customers. They have improved operational performance under their new CEO and they have new runway. They ate their way through supply and demand issues. They are at 89% occupancy. Payout is reasonable and they might increase it next year. One of the better companies in the group. 5% yield is absolutely sustainable. A little room for capital appreciation. There has been a lot of M&A activity in the US in this area.

In a rate rising scenario, you are locked in to your contracts. These are longer-term in nature. She feels this one can manage through a higher rate environment. These are retirement residences and because of deaths their portfolio is culled continuously and they can adjust to a higher rate environment. This has 90% occupancy.

Finally sold their US exposure last year. Now they are the only platform to have seniors and nursing homes nationally. They are the largest one out there. The Canadian market is the best one out there. They are now executing better. It could be a takeout target. Canadian senior’s residences are a better platform that in the US. It will be higher next year.

It has done well so there won’t be much tax loss selling this year. Demographics are working for them. Also, American companies are coming in and buying this kind of company. A long term hold that he adds to on weakness.

(Top Pick Aug 16/13, Up 27.94%) We saw the pull back in REITs last spring. She expects that rates will slowly climb up, but no spikes. She likes seniors housing. Nice yield and lots of M&A activity in larger US healthcare REITs. They are looking to Canada. CSH are overdue to raise their dividend.