Morguard North American REIT (MRG.UN.TO)

Didn’t participate in the IPO as he was worried about the multi residential sector and the valuation for this company was a little bit rich. Now it represents pretty compelling value. There is no risk to the dividend. With shorter duration leases in apartments, you should get a nice rental uplift. One thing to watch out for longer-term is that home ownership in the US is at the lowest level, it has been at since 1995. A lot of people, since 1997, had no choice but to rent, which has driven up rents substantially. This means that at some point rent growth is going to slow, but it will be gradual.

High quality company and thinks the dividends are safe. Would prefer an industrial, as opposed to a commercial REIT such as. Granite REIT (GRT.UN-T), which probably has more room for growth in the distributions. Ultimately though, these REITs are good investments for income.

He favours this REIT. Doesn’t think it is going to cause anyone to jump out of their coffin. You might be fairly bored with it, but it is safe. He immensely favours Morguard (MRC-T) itself.

Likes it. Extremely well managed. He has MRC-T in his portfolio, which he prefers.

(A Top Pick September 10/12. Down 20.3%.) A smaller REIT, so is quite illiquid and can get knocked around more than average. Generally speaking, when investments starts to fall, people get discouraged and don’t understand so they tend to sell. Yielding about 6.7%. Has a great track record. Buying property in the US, which he thinks is a great place to be. Rents are strong and improving.

Doesn’t like the US apartment market in the US. As economy improves in US rental market will shift to ownership. But it represents a pretty decent buying opportunity. 5.6% dividend is fine and gives you exposure to US assets given the currency. This is a growth by acquisition story and once your cost of capital increases, profits decline.

(A Top Pick May 13/13. Down 16.53%.) Was surprised at how fast interest rates went up and the effect it had on REITs. Likes this one basically for its exposure to the US. Any new growth they are moving with is into the US and basically residential rental properties. US housing recovery is positive but credit is still hard to come by for people who defaulted during the financial crisis. Still likes.

Made a nice purchase of a multi-unit residential property consisting of apartments and town homes communities. The stock is really only down because it has REIT in the name. With the US purchase, it can grow. Yield of 6%.

This was an IPO last year and he did not participate because of differences with management on their strategy of growth. Have apartment assets both in Canada and US. They require access to capital markets because they need to grow. The deals they are going to do if they raised equity today, would be much less accretive to its investors to free cash flow than when the units were trading house to $12.

Management team, with real estate business. REIT is transitioning to move to the US. Rates will stay lower for longer. A long term investment. Balance sheet in good shape.

(A Top Pick March 30/12. Up 18.01%.) Made a property acquisition in the US which he really likes. They rent those properties out. Did stock for it and it has been weak after the issue but he now likes it better than before. A little bit better growth profile going forward. Nice yield of about 6%. One-year target of $12.50.

Have a sponsor called Morguard Corp which has been one of the best performing stocks in the TSE for the last 10-15 years. 5.5% yield. Buying residential properties, mostly condominiums, in the US. Expecting a dividend hike.

Passed on the IPO because of unsatisfactory answers from management but the stock is done very well since then.

A recent IPO that owns apartment buildings in Canada and the US. He didn’t buy this on the issue. Had some issues with the structure and wasn’t comfortable with their plan for growth in the US.

Yields about 5.25%. They are expanding and buying condominiums and apartments in the US. Management is a tremendous creator of value.