Chartwell Retirement Residences (CSH.UN.TO)

This sort of held in at around $10.40 level and broke the upward trend that had been running since late 2011. The fact that it held in at the $10 range must mean that that’s where the risk/reward is reasonable for investors. The support below that would be around $9.80.

Dundee vs Chartwell. If you hold Dundee keep holding. Chartwell deals with seniors housing, so it's a growing market. Supply also increased in anticipation of the growing market, but he expects Chartwell to do well in any case.

Dundee is good for here and now, Chartwell good for later. He likes both. Would be more interested in buying Chartwell at $11, instead of $11.30

Demographics play in their favour. People are living longer and there is a low penetration of seniors moving into retirement communities. There is still operating leverage in this company. Yield of 4.71% and she thinks there will be room for a distribution increase by the end of the year.

(A Top Pick April 4/12. Up 30.82%.)

Retirement area is a good long-term secular growth area. Nice distribution. REITs have had very good runs in the last several years so, first and foremost, you want to have an outlook on interest rates as this is an interest-rate sensitive stock.

Largest operator of seniors housing in Canada. Also, have a presence (26%) in the US. Likes the demographics of their industry. People are living longer. Penetration of people living in retirement homes is quite low, which plays in their favour. Did a couple of acquisitions in Canada and have been selling out of non-core areas in the US. Good chance they will be increasing the distribution this year. Yield of 4.73%.

A real turnaround story. Over 2-3 years management has done a great job in improving assets, leverage came down and payout ratio came down. Payout is 80%, safe. As assets improve in terms of occupancy and rents, this could be a takeover candidate. It is trading over net asset value but growth going forward justifies this valuation.

Has done very well over the last couple of years. Seniors housing is a great business to be in. Had some problems on their US side but divested a number of assets there and concentrated more on Canadian properties. Very good job of managing the homes. Nice yield of about 5%. They keep building new properties slowly and steadily.

Likes this one very much, primarily because of the part of the market it serves. Demographics are going the right way and they are operating a very tight ship. You can buy it here, but you should have a 2-3 year outlook.

A multiyear story with seniors aging. Annual growth rate of about 10% versus the REIT sector of about 7%, yet it has a lower valuation. Growing by acquisition. De-risking their balance sheet by selling off non-core assets. When they buy other assets, they achieve economies of scale. US occupancy is really picking up and supply growth in Canada is slowing. Try to buy on a pull back.

The largest seniors housing REIT is Chartwell. Did a great job over the last two years of bringing down their payout ratio and improving their portfolio and bringing their leverage down over the last two years. Fair premium to its NAV. He is holding on and is favorable to this sector but he sees a slowdown in the Canadian housing market. Expects a distribution increase.

Population is aging creating more demand for independent living and long-term care facilities. This company is very well-positioned to benefit from that. Very good market position in Canada and are optimizing their US portfolios. All this should start to show up towards the end of 2013.

(A Top Pick Dec 1/11. Up 38.09%.)

Had a tremendous Q3. 20% FFO (Funds from operations) per unit growth year-over-year. Bought a huge portfolio of assets from a Québec developer in partnership with Healthcare REIT out of the US and looks like it was done very accretively. Occupancy is ticking up in all 3 markets. Finally firing on all cylinders. Will continue to deleverage. Trades at a bit of a premium to NAV, which is about $9.50-$9.75 but he thinks it’s worth about $10.50-$11.

Senior residences/retirement homes. For a long time, they were heavily invested in the US and Canada. Has always shied away from this because of confusion with their US strategy. Now getting most of their assets out of the US and it is becoming a more stable asset. Relatively expensive at this time.