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

Sold last spring because he thought REITs were pretty fully priced. He is moving from the income play to income WITH growth now. It is ok as a replacement for a fixed income instrument. The dividend is safe. But if rates start back up then this one will get squeezed.

(A Top Pick Jan 9/12. Up 6.33%.) Well managed REIT.

Investors are getting a great opportunity to buy a high quality REIT as well as an A+ management team. Acquisition is a game changer. Along the way dividend will increase. If the transaction is unsuccessful then there is a significant break fee to benefit HR.UN

Has come under some pressure as a result of their bid for Primaris (PMZ.UN-T) and will continue to affect them until this gets resolved. Trading at a substantial discount to NAV. Primaris acquisition is viewed by most as mildly dilutive. If you own, you are getting a portfolio that encompasses very high quality properties. Prospect for dividend growth is very good.

Well run company. Pretty focused on office and industrial . You are paying full value with the acquisition. He owns the convertible debenture. If you are in it for the dividend, great, but not for the growth.

He only owns the debt. That new transaction with Primaris bothers him. He doesn’t see great synergies. He thinks a Boardwalk, Main Street or Brookfield Office Properties (based on valuation), but prefers apartment buildings.

5.6% Trading at a discount to NAV. Portfolio is long term leased and debt is long term as well. When names like this trade below NAV and you see possibility for distribution increases they become very attractive. Should see the majority of its Calgary development fully leased to Encana in 2013/14 and when the cash flow comes on, you could see two additional distribution increases, which they have done for 11 consecutive quarters. Valuation is not reflective of where it should be.

Lagged the group, up only a percent or two. Increasing distribution. Nice mix of Commercial and Industrial. 5.3% dividend, double digit return.

Office focused. The real story is that it trades at a discount to NAV and they will really see a benefit from the Bow in Calgary which is going from a development property to an income producing property in 2013. Valuation is compelling. Forward price from operations is about 14.

There is a little bit of a pullback in the large REIT sector. There is some questioning as to whether the sector tops out. This one has been hit a bit more than others. The chart suggests that there is a bit more downside. Wouldn’t be too alarmed as he doesn’t see rates increasing dramatically in the near-term. There is probably a little bit of fear of housing in the picture.

This has recovered nicely from the depths. Diversified with office and retail. Has underperformed. Last quarter numbers were light. He owns the debt rather than shares because of the cyclicality of the assets.

REIT for a daughter’s account? This one would be his top pick. It is a major Canadian/American real estate holder. Retail, commercial and industrial are the main areas. About 50% in Ontario and 39% in the US with the rest being in the West. He sees a yield of 5% plus going forward.

(Top Pick Nov 18/11, Up 12.10%) Still likes it. Good wide exposure to Canadian Real Estate.

(Top Pick Dec 8/11, Up 6.33%) Performed really, really well the year before. REITs look like good value. Just over 5%, have got their act together. Still represents excellent value and is still a buy.

Dividend will go up and will go up even more by the end of next year. Trades at a discount to NAV. Weighted average this term is over 10 years and the weighted average term of their debt is over 10 years. A lot of visibility in terms of their ability to grow. High-quality tenants and buildings both in Canada and US. 5.2% yield.