Mainstreet Equity Corp (MEQ.TO)

MEQ continues to chug along, producing fairly steady EPS growth. 
With a 16% YTD gain, the stock is somewhat expensive for the sector, at 22X earnings. 
It is likely getting more attention as market cap has breached $1B, and there are few non-REIT real estate plays in Canada. 
There is no dividend but three analysts cover it. 
Insiders own 50% and are certainly committed. 
Revenue rose 13% last year and vacancies improved. 
Debt is quite high, but shares have done very well: up more than 6-fold since 2016. 
We would consider it expensive, but otherwise pretty good for a real estate stock.   
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Specializes in acquiring and managing small apartment buildings in Western Canada.
Not a REIT, rather a corporation that retains capital.
16,000 doors currently with minimal equity dilution.
18% compound rate of return.
Sub 2% debt levels that were guaranteed at low interest rate levels. 
Rental rate increases will positively affect business. 

(A Top Pick June 1/17, Up 12%) A great manager. Out of Alberta with very good western properties. He sold during its recent highs, but still likes it.

Trading at a discount to its NAV. Owns low rise in Alberta, but also a 3^rd of the portfolio is in Surrey BC. They have a huge balance sheet, because they do not distribute any yield. They just retain their earnings and buy properties at cheap valuations. The CEO is a good executor on his properties. They are less cyclical than the high-rises in Calgary. (Analysts’ price target is $41.00.)

It is a real estate company and not a REIT so it does not pay a dividend. They have apartment rentals in Western Canada. It trades lower than its net asset value. He will continue to hold it. They did a buy back of their shares. The float is only 4.4 Million, so it is a thinly traded stock. There is an opportunity for it to go up. Be careful because it is not as liquid as other companies.

(A Top Pick May 28/15. Down 5.07%.) This is a real estate company, not a REIT. They don’t pay a dividend. It is primarily in Alberta and Saskatchewan, so the stock has had a bit of a difficult time over the last year or so.

Apartment building vacancies are terribly tight. A third of their portfolio is in BC, which is doing quite well. They also own apartments that are lower in maintenance costs and that have rents of $800 to $1100 so they are not the higher end that are suffering. It trades at a 35% discount to its NAV and they have about $150 Million in cash.

It is not cheap for a reason. 2-3 story apartment buildings in Calgary and BC. They are seeing weakness out of Saskatoon. They are holding up otherwise. They are great at returning 15% as an internal rate of return. When you get ejected from your house, where do you go? An apartment.

It is a real estate corporation and does not pay a dividend. It is trading at a 25% discount to its NAV. People worry because it is in Alberta. He thinks that business will be fine. They have a great balance sheet and liquidity so they can make acquisitions. It has fallen as people worry about Alberta.

One of the cheaper stocks in the TSX. Trading at about a 20%-25% discount to its NAV. They own the mid-tier apartments (2 or 3 stories) in Edmonton, Calgary and Surrey. They have NOI (net operating income) growth of around 15%. They are refinancing and saving millions of dollars on financing costs. It is too cheap. It should be worth $45-$50. They are doing incredibly well in their numbers last quarter.

(A Top Pick Feb 11/14. Up 2.74%.) This is a “wait and see” kind of story. Have a great balance sheet and are getting funding of about 2% through CMHC. Heating costs have dropped. Great management. Trading at about a 20% discount to its NAV, so it is outright cheap here. This is a buying opportunity.