Cominar Real Estate Inv Tr (CUF.UN.TO)

A big yield of about 9%, which is covered by earnings. The last quarter had very disappointing numbers out of the Montréal office, disappointing numbers on retail at east. They had 7 target locations, and only have 2 them leased up now. Putting that altogether, retail/office is not very good. On the flipside, industrial was absolutely fantastic growing at about 4.6%. Net occupancy was down. There are better places to put your money.

Multi asset properties - industrial and retail. They were light on their numbers for a couple of quarters. The payout should be fine. You will not get much drama from these kinds of assets. He prefers B2B REIT. The dividend is sustainable.

(A Top Pick June 5/15. Up 4.25%.) You’ll find that bonds tend to be relatively strong over the summer versus a lot of asset classes. So if you buy something like the REIT sector, don’t expect a lot of upside, but it has a fairly high dividend that doesn’t have a lot of danger. Dividend yield of 8.1%.

All the REITs are coming back down to a low point within this big sideways giant trading range. Thinks this is an okay time to own this. Pays something like an 8% yield. A well-run company and have the cash to support the dividend. This is a summer play only.

Focused in Québec. Quite reasonable trading at about 7X AFFO. Thinks the Québec market is outperforming. Have done a good job of executing. The biggest issue is that they have to keep trying to grow, because the last couple of quarters has had a slowdown in the growth profile.

With this, you are making a bet on the Québec economy. Very nice yield of over 7%. Don’t expect the price to go up too much, because the Québec economy is not growing at a great rate. Have a little bit too much debt, and they have been bringing that down.

Did a large equity issue which helped clear up a little bit of the debt issue. Thinks they will have to do one more equity issue to get that down to where they would really like it. Recently announced some large developments in Québec City. Yield is safe, so if you are happy with a 7% yield, this is a good place to be.

Not a badly run REIT, but an unduly amount of exposure in Quebec with creeping debt. There are better REITs in Canada to own.

This recently traded below Book Value. This is one of the largest commercial real estate operators in Québec. $8 billion portfolio, 75% exposed to Quebec, and the rest to Ontario, Maritimes and a little bit out West. Trading at Price to Book of around 1 and paying a dividend yield of 7.59%, and he doesn’t feel you can go wrong.

Decent dividend over 7% and that should be your main focus. Just finished off a major growth spurt and will now issue equity to bring the debt level down. A bit of a play on Quebec, which could benefit from lower oil prices.

Doesn't think there is much of a chance of the 7.7% yield shrinking, i.e., the price going up. The Québec focus has put a bit of an economic damper on it, so they are trying to expand out of that. However, he is not crazy about some of the deals they are doing, especially in Ontario. Just did a very large, smart transaction with Ivanhoe, when they took down a large group of malls. However, they raised their leverage and have stated that over time they want to reduce that leverage. That implies that whenever the stock price goes up, they're going to have to do an equity raise to bring the price back down. Doesn't see a lot of stock price increase in the future, but it is a safe yield.

Not one of her favourites. A Quebec based REIT. They brought their leverage up too far with recent acquisitions and she does not see enough organic growth potential.

Sold his holdings about a year ago, but is starting to look at it again because it represents really deep value. One of the cheapest diversified REITs in Canada. This was a REIT that made a transition from being very development focused to growth by acquisition focused, and they went on a huge acquisition binge a couple of years ago. Issued a lot of equity and as a result the stock fell off. Currently trading at a very cheap multiple. Payout ratio is reasonable, so you can bank on getting your yield. His only concern is how they are going to realize growth going forward. There is some room for them to increase their occupancy but it will take time given their focus in Eastern Canada and Québec.

(Top Pick July 31/13, Down 0.51%) He sold it. Quebec referendum weighed a lot on this one. He is not really a fan of the properties they are buying. This is not the best strategy and they should not grow aggressively thought debt. If you think Quebec will catch fire this is a good way to play it.

Quebec went through a bit of a tough time in the recession, and the election didn’t help. This has been expanding out of Quebec and into Ontario, doing some acquisitions that the street hasn’t been crazy about. If you think the Quebec economy is going to improve, then you continue to Hold.