H&R Real Estate Inv Trust (HR.UN.TO)

REITs have been hit and are down 12% since last August. If you want to own a REIT, you get 4%-5% dividend. H&R bought Primaris’ mall assets moving them from being primarily industrial/commercial. Market didn’t like this because now it is a mixture of everything. However, rates are going to go up over the next few years and you need a growth REIT because you are going to lean into higher rates. You need something that is going to grow its distribution to hold the price and this is one of the better ones to do that.

Stock sold off when they did their acquisition. Now with the fear that interest rates were going to go up, that knocked the stock off too. Likes it here. Doesn’t think interest rates are going up anywhere fast any time soon. 6.3% yield.

Expanded their platform and they are a bigger REIT. They were sold off brutally during the Fed tapering crisis and hasn’t come back yet. Yield of 6.1%. This is an opportunity to buy quality assets at a discount price.

Diversified REIT, even more so after their acquisition of 27 Primeris’ enclosed malls. This was a good purchase for them. Diversified their cash flow stream and as they integrate the portfolio with their other assets, it should give even stronger stability in their free cash flow. This one has got hit very hard over the last few weeks. Trading at a $3 discount to where he feels their NAV should be. Can see $25 in 12 months.

He has been adding to it. After the Primaris acquisition it really has a top quality asset base. Payout ratio maybe a little high but it is them digesting the assets. Top quality management team and top quality asset base. This is the time to own REITs like this. 6.5% dividend.

Owns the debt, not the equity. He sold out of Primeris when it was acquired. Are trying to grow through acquisitions but he prefers tighter REITs that are focused on lowering leverage. The dividend is safe and the properties are good. Prefers Debt.

The US will be a good choice and H&R will benefit from the US. Distribution is very safe. They have great long term assets. Good for a long term hold. There may be some more volatility in the short term.

(Market Call Minute) 5% dividend and capital appreciation.

(Market Call Minute.) Trading at just about BV and has a nice yield. However, REITs have tended to trade at about BV. Nothing exciting but you are being decently paid.

Mid-March, they turned over the Bow project in Calgary to Encana (ECA-T), a 25 year lease and have just completed an acquisition of Primaris, which gives them a major leg up into the retail business. The major business is 40% Ontario, 30% US and the rest is scattered.

(A past top pick May 28,2012 at $24.28 no $24.56 up 6.12%) Their timing was a bit off, as they weren't expecting the company to make a bid for Primaris. Feels that it is still good, "like a good bond". If you own this, hold on to it.

A solid hold. REITs have had another run recently. None are cheap and trade at slight premiums to breakup value. Prefers REI-T and Crombie after that. Little higher growth.

(Top Pick May 8/12, Up 8.08%)

He continues to like it. Today is a decent entry point. Used to have more than half in one building, but now they have moved away from a single building. Investors have been reluctant but are now starting to see the synergies in a recent acquisition.

5% maturing December 1/18. Likes the REIT sector.