InterRent REIT (IIP.UN.TO)

(Market Call Minute) Great little company owning a lot of apartments in Ontario. Well managed and trading at a discount.

This is a value play. Has a low yield because it has a low payout. It is keeping a lot of money and using it very effectively. They are a redeveloper for apartments and know how to go into the market, buy a building that needs some TLC, work with the residents they want to keep and increase the value of other buildings around.

Just reported Q3. From their perspective, growth wasn’t as high as the market would anticipate. That’s only because they are refurbishing a number of assets. They are seeing a greater number of their portfolio stabilize. Units have come off about 20% since the peak and is now trading close to 20% discount to the NAV. Management has a history of very strong capital allocation that has increased free cash flow per share. Yield of 3.75%.

Has always been a growth REIT and the opportunities they have found to continue to expand is impressive. However, the last couple of quarters have slowed. If you have a timeline out to 2014, you will be rewarded for the amount of growth they are doing. A significant amount of their portfolio is under development and redevelopment. Have taken on some very interesting development projects in Ottawa. Feels they are stretched a little bit as one key property in Ottawa needs a lot of work. Thinks they can handle this and will be rewarded. 3.77% yield.

Was a top pick. Has put money back to work. They take a rundown building and spend some money and then charge a lot more rent. Trusts management will continue to do this. It is a great acquisition candidate.

Debt to growth BV is well under 50% and payout ratio is about 60% so they have a lot of room to increase the 3.5% dividend. Recently completed some acquisitions. A lot of organic growth potential. Good balance sheet. Trades at a significant discount to NAV. $7 12 to 18 months out.

Continues to see upside. Sees the NAV as $6.50 and if it doesn’t get there, it probably won’t be around in 12-18 months. Has shot up in the last couple of years because of the very good management team that has focused on redeveloping properties. Relatively low payout ratio. Taking cash that they are not paying out to unit holders and spending it on improving underlying properties and growing through acquisition.

(Top Pick Nov 11/11, Up 80.90%) Don’t take profits. Bit of a turn-around story. Redevelopments drove up occupancy so the stock did very well. We will still get the benefit of the increased rents for another year. Good take-out candidate.

Has been doing well. Feels you have to watch the balance sheet and watch what they are doing with their cash.

(A Top Pick Nov 11/11. Up 93.27%.) Still a lot of upside especially if you consider that they are applying for above guideline increases. Expect there is also a potential for a dividend increase.

(Top Pick Nov 11/11, Up 100.83%) Core holding. Continues to hold in funds. Continues to think it is a good investment. Still $0.50 upside.

Apartments in Ontario. Good management. Distribution was just increased 33%. Wait for a pullback into the low $5’s.

This is a growth entity and has got huge identity for its size. Payout ratio is 44%.