Morguard Corporation (MRC.TO)

Warning: You're in for the long term because it's very illiquid stock. A Hotel California where you check in anytime, but you can never leave. He loves this stock--great value. Companies like this either go private, is bought or it gradually rises in time. Trading at only half-book--incredible value.

It doesn't trade a lot, but it's a bargain. A massive real estate company in Canada with holdings across various sectors, from apartments to offices. It trades at a huge discount from its overall NAV. They've compounded their book value by
double digits over the last five years. They've been buying back stock. Buy this instead of actual real estate. (Analysts' price target: $205.00)

This still has room to grow. A splendid company with a great team of people. Has some very long-term leases of properties as well. A very, very strong company that knows its business. Thinks it will carry on expanding very carefully. One of his largest holdings.

(A Top Pick Nov 3/16. Up 12%.) A long-term holding for him. The company likes to buy distressed assets and real estate when it has been beaten up. They are working to do things with Temple Hotels in Alberta. An undervalued net asset value play. Feels the company is worth $240-$250 a share.

(A Top Pick Nov 18/15. Up 24.04%.) A very illiquid stock and pretty much trades by appointment. This is one that when you are buying, you never put in a market order, always put in a limit order. It has great assets. The NAV is probably $210-$220 a share.

Why buy Morguard North American REIT (MRG.UN-T), when this, as the parent, has more optionality and doesn’t have to pay out 95% of its cash flow. This is trading at a massive discount to its real estate empire. Thinks that pre-tax it is worth $250 a share. CEO has been buying back stock, as well as owning a significant portion. Dividend yield of 0.35%.

One of his best holdings. This is an amazing company in real estate. A special blue-chip. It has a really good team working for it.

A real estate holding company. The value of the assets is well over $200 a share. But the stock is very illiquid. You can get in and get trapped, not being able to get out. He thinks they have a terrific portfolio of real estate. He likes it very much.

(A Top Pick Feb 20/15. Down 4.16%.) A real estate play, and management owns the majority of the shares. Doesn’t trade very much and they continue to buy back a lot of stock. When you do the math and add up all the value in the public entities it owns, plus the real estate, he comes up with a valuation of at least $200 a share. They are re-leasing a lot of their Target stores, and are using it free cash flow to keep buying and developing more assets.

A hard stock to buy, simply because there is very little trading in the stock. Insiders and management are owners. There is minimal trading on the stock, therefore do not put in a Market Order, put in a Limit Order, because you could have a bad surprise. Has a BV of $220, and you can buy it at $140. Dividend yield of 0.42%.

(A Top Pick March 27/14. Up 22.02%.) This company is really thoughtful when it comes to adding on real estate and paying reasonable prices. They take a very long term approach. They have a number of publicly listed companies. He could see them spinning off more assets over time. Feels it is worth $200. Still adding to his holdings.

Has fallen a little recently, and he doesn’t know why because there is enormous value. If you look at all the parts that it has and add it up, it is worth over $200 a share. Thinks the market is missing what is going on with the company. It has recently diversified into investment management, and he thinks there is potential for this to follow the Brookfield Asset Management model, which is to drop-down more assets into the publicly listed REITs and maybe at some point start an investment management publicly traded company and collect the fees as it goes up higher.. Yield of 0.41%.

Morguard (MRC-T) versus Brookfield Asset Mgmt (BAM.A-T)? A 3 year chart was used. This ended up higher, but what convinced him more towards this was that the spread in 2013-2014 is getting wider, which indicates the company is an outperform. He would be more inclined to pick this one.

Which Canadian REIT would benefit from appreciation of real estate prices in major Canadian cities? This is the one that you would possibly be looking at. Otherwise you are looking at one of the Brookfield companies. He exited this area because he felt it was getting a little bit late.

A deep value pick. Continues to trade at a huge discount to BV. If it sold all its real estate, it would probably get over $200 a share before tax. It is arguably worth $150-$175 a share. It continues to grow. They keep buying back stock. Anything to do with real estate right now is reasonably priced in Canada, because he does not see interest rates going up for years.