Derek Warren Melcor REIT MR.UN-T DON'T BUY Apr 29, 2014

Likes the company but not crazy about the REITs and their external management structure. Thought the fees were a little bit heavy so he did not participate in the IPO. Good safe company to be in but not his preferred pick.

This tends to be more of a Western Canadian focused REIT. They have good assets, but the challenge here is that it is going to be more growth by acquisition oriented. Dividend is reasonable in the valuation is reasonable, but he sees better risk/reward in other REITs.

This has a stigma of being related to the Edmonton market. A blue-collar town with a lot of offices being built, so there is going to be downward pressure on rents going forward. This really comes down to making a call on oil.

The main market here is Edmonton, so you have to have a view on Edmonton. Being an oil related economy, there is some pressure right now. If you view this as an opportunity to take advantage of this weakness, this would be the name for you. He sees a lot of office building going on right now in the Edmonton market, and thinks it is too much for a market with that kind of growth rate. Dividend yield of 8%.

The advantage is that they really know the Edmonton market better than anybody else. If you want to play Edmonton, this is the way to do it. He is quite afraid of Edmonton, even though they have been able to lease up quite well. A lot of the space still hasn’t been constructed, but is nearing completion. Dividend yield of 8.3%.