Northview Apartment Real Estate (NVU.UN.TO)

Has been picking away at this. A great entry point. They acquired True North Apartment (TN.UN-T). There is good and bad associated with the deal. However, on a pro forma basis, the payout ratio is less than 75% and you are getting a high single digit dividend yield with very good geographical diversification in the Canadian apartment sector. A great name to buy because apartments are a very defensive asset class. The diversification because of the acquisition should be beneficial. Dividend yield of 8.65%.

Alberta based residential REIT announced a merger with True North. He feels this is a terrible deal with a vote coming up and he urges you to vote against it. Their debt level and payout ratio will go up.

Proposing to take over True North Apartment REITs. A very controversial deal, and usually this company doesn’t do things that are deemed controversial. The market was not positive on this because basically you usually don’t do dilutive deals when you’re stock price is at a lower level and trading significantly below NAV. The view is that they would like to diversify geographically. They don’t have much Ontario exposure. The timing is questionable, so financially it doesn’t make sense. He is watching to see if the market is overly harsh on this, and if so, he might be able to take advantage of that.

Largely an apartment REIT in northern communities and St Johns Newfoundland. A lot of government based for territorial and provincial governance. Fort McMurray is a big market for it, so energy creates ups and downs for it. Low payout ratio and low debt level. Acquiring True North Apartment REIT (TN.UN-T), not a high quality REIT, which took the stock down 10%. A highly dilutive deal that will increase their debt level and increase the payout ratio, which increases the risk. He wants nothing to do with this deal.

They are seeing 15%+ vacancies in the oil patch. It is a very well run and a very well financed company. Watch for a commodity bottom.

It is less affected by rising rates because they have a very solid balance sheet and are in apartments, where you can raise the rents sooner. They have exposure to the oil markets in Alberta. They are now seeing 20% vacancy. This company understands that and knows how to weather this out. You would want to stay on the sidelines for now.

Has a more direct exposure to Fort Murray and Lloyd Minster, so they have seen pressure, and there may continue to be some weakness. Occupancy in those specific markets will continue to be low. What has saved them is there excellent balance sheet and having low debt. The company is in good condition. This is an opportunity to buy if you want to make a call on oil.

Feels this one is overdone right now and is at a good entry point. The question is, how bad is the oil situation going to get? He thinks we have hit bottom. His company has a $29 target on this. He would prefer others in this spectrum.

This is very specifically focused on the commodities market. Has a larger than average exposure to Fort Murray, and other areas of northern Canada which are gas related. They are being beat up because of that. Balance sheet is in very good condition. At some point it begins to look so cheap that you have to be interested in it again. Some time this year, he thinks this might be a very interesting name that he will want to buy into.

This is mostly multi-apartment dwellings out West, specifically Yellowknife and Fort McMurray. With oil down, this is a REIT that got hit hard. The last couple of earnings releases were weak. Had shown some increase in vacancies and they have development pipelines which wouldn’t be a good thing to have with oil down. A conservative balance sheet, they don’t pay out too much and it has capital to deploy. He started looking at this and started buying a small position. Trading at the lower end of valuation. You kind of have to hold your breath hoping that the oil dynamics won’t impact vacancies that much, because the Alberta market is tight.

(Top Pick Aug 30/13, Up 13.75%) 5% yield. He continues to hold it. A lot of their apartments have high barriers to entry. Well insulated from competition. You should see lots of organic growth from this company.

(Top Pick Sep 3/13, Up 12.04%) Trades at a discount to others and payout ratio is low. They sold their seniors residence business. Still likes it.

(Top Pick Sep 3/13, Up 17.12%) They sold a division of seniors homes and are slowly re-deploying the capital and has held back earnings and distribution growth. He sees these starting to accelerate from here.

(A Top Pick Aug 30/13. Up 18.27%.) He likes the multi-residential sector. Represents a discount to NAV and you are getting a very decent yield. They own properties that are in very remote locations with high barriers to entry. Decent balance sheet. More of a focus on development versus acquisition.

Dividend is very safe, great balance sheet. Because of exposure to the north it is not a takeout target. The upside is the fact that they are doing interesting developments. Lots of energy exposure provides more stability for them.