Derek Warren Morguard Real Estate Inv Trust MRT.UN-T COMMENT Nov 13, 2014

He is relatively constructive on REITs after the selloff. This one is fairly well diversified. It has a good footprint and good management team. Thinks this will give you a pretty decent yield. Not his favourite in the real estate sector.

A very capable management team, which is a huge positive. The action in the REIT space is driven more by interest rates. Expects rates will stay lower in Canada, but yields have been dragged up in the US in the past little while. Every time the REITs go up, the income becomes less valuable, but a good portion of REITs have financed themselves out fairly far. He is positive on this company.

He owns Morguard Corp. (MRC-T). He likes it because they hold a large portion of the free cash that is generated which gives them much more opportunity to do something with it. It is an attractive compounder.

The REIT has been challenged because of the types of real estate they hold in the retail space. They also hold office space that is also challenged. It is externally managed by Morguard Corp and he feels the fees being collected do not put them in synergy. You would be better to hold the parent -- MRC-T -- as it trades at a discount to book as well.