Dream Global REIT (DRG.UN.TO)

(Market Call Minute.) If you own, be very careful with regards to the lease terminations that Deutsche Post is going to announce on August 31.

(Market Call Minute) Doesn’t own them because of management compensation structure.

Investing principally in Germany. Was just added to the broad REIT index. They are able to pick up the highest quality German office properties. Yield is fine.

Has significant exposure in Europe. Currency is a risk, but thinks Canadian dollar will decline in value opposed to the Euro. Long term buy.

One of the few Canadian groups that have made the trek over to Europe to buy real estate. Interesting time to be looking at European assets because of depressed assets. A lot of European funds were formed during the boom and being forced to liquidate portfolios. Because of low cost access to capital and a shrewd management team, Dundee has been able to accumulate a very interesting portfolio of assets in Germany. Owns 293 properties across Germany. Yield of 7.55%.

(Market Call Minute.) Have diversified a little bit out of Germany through acquisitions. He owns a little but this is not a core name for him.

Started to warm up a little to this. Had concerns about concentration risk with respect to its tenants. Good chunk of the portfolio was leased to Deutsche Post (DPSGY:US) and since then have done a pretty good job of diversifying exposure and buying new buildings. Likes that they are able to buy depressed real estate in Europe where commercial real estate prices are still trading at a discount to NAV. Some headwinds in the form of currency exposure, which will trickle through to the fund.

The only REIT that has all of its assets outside of Canada. It is in Germany, average to higher quality. You want to look for them to make accretive acquisitions. They recently bought higher quality offices that are adding to their cash flow per unit. You want to see less than 50% leased to one tenant.

Own a lot of real estate properties in Germany. Have been buying office buildings to both move their occupancy up (from 82%) and to move it more towards offices. The great thing is that you get mortgage financing at 2%-2.5% and the yield on these properties is 5%-6% and a lot of the properties they got from their acquisition are below market rent so there is growth there. 7.8% yield.

6.4% dividend yield. Was concerned about tenant concentrations. Good news is that they are well positioned to capitalize on the fact that some commercial real estate is being disposed of by governments at fire sale prices.

Owns a portfolio of commercial real estate in Germany. Doesn’t have a valuation on this as yet because there hasn’t been 4 quarters of operation yet. B & C assets, quality management team, low leverage and low payout. Likes management. 7.4% dividend yield.

Part of a very entrepreneurial group. Have bought a lot of post offices and are buying other stuff as well and are going to diversify. In Germany, which is one of the areas that is a attracting more money than anywhere else. Stock has finally moved up a little bit. He thinks this will continue to be a winner. 7.4% yield, which he feels is in no danger.