Northwest Health Prop Real Est Inv Trust (NWH.UN.TO)

(Top Pick Sep 14/12, Down 13.18%) Interest rates went up and people bailed out of these names because people said you should. Can’t believe there has not been a take-over offer on this name.

(Market Call Minute.) Largest medical office building owner in Canada. Thinks there is a very good argument to be made for consolidation of the industry. Patient care is going to increase.

Didn’t participate in the IPO but continues to follow this very closely. Management has done a very good job in trying to tackle the hurdles that it would take for him to invest in this. Hasn’t been many buying opportunities as it has continually traded above NAV, but today it is trading below NAV. Payout ratio is in the 90s so yield should be stable. Occupancy is sitting around 91% and management is trying to get it up to 94% but he is not confident they can. If you Buy today, you are getting a stable yield and at well below what the assets are worth.

He was lightening up but would be adding at $10.50-$11.

Niche company. Build medical office buildings. Grown through accuisition. Need to move non-medical tenants out so they can charge more for medical tenants. Longer term things they will get a dividend bump, but need to be a bit patient and wait twelve months.

Has all the qualities that he likes in a REIT. They don’t have to compete to acquire the types of properties they are getting. He didn’t like the valuations on the IPO and has never had a chance to get into the name. Not cheap. Occupancy still hasn’t come back to where they said it would be during the IPO.

(Market Call Minute.) Medical office buildings. Sees good potential and you get a very attractive dividend yield.

They are looking to consolidate the medical office buildings in Canada. Growing quite quickly. One of the cheaper REITs in the market. Hoping for a distribution increase.