Nexus Real Estate Investment Trust (NXR.UN-T)

Pretty good job transitioning to pure-play industrial, but some worry about capital allocation. Trades at a higher discount than peers. He wants more liquidity and concentrated in key markets. Better risk/reward in larger entities with more liquidity. See his Top Picks.

Struggling a little with debt. Solid managers. Industrial REITs are doing gangbusters. Are fully occupied and lease rates are rising. As they have been selling non-core assets, the market has pressured shares. Doesn't think they will cut the dividend. Is moving in the right direction. Lower rates will help.

Industrial REIT's have performed well with eCommerce growth (storage). Major beneficiary of lower inflation rates going forward. Would expect share price to increase going forward with higher dividends. 

Stalled on acquisitions. Small cap, over-levered, failed to execute. He got out and moved on.

80% industrial, hoping to get to 90% by end of this year. Still owns some office and retail. Needs to sell assets to lower net debt, and then buy better-quality industrial assets. An execution and show-me story. Above-average debt profile, with an above-average dividend yield of 8.8%. Management's done well. Interest rates are a headwind.

Likes industrial real estate space.
Stock down because of rising interest rates.
Current share price a good place to buy.
Narrative on falling office space demand overblown.
Too much debt on balance sheet also reason shares under pressure.
Prefers Granite REIT & DREAM before Nexus. 

Small cap, so be careful of volatility. Was diversified real estate, but now turning into pure-play industrial. Loves the industrial theme. Low cost, low capital intensity. Big headway in the London ON market, a real hotbed of activity for transportation and distribution. Yield is 7.71%.

It is a very good company with 85% of its business in the warehouse space. It is looking to get out of the office space part and extend the industrial component. Has facilities in B.C. too. It is actively issuing shares to become larger. Consider it a safe hold with a good distribution yield and growing rents.

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. They have industrial properties that held up well during the sell off earlier this year. Solid profitability and has positive cash flows. Valuation is starting to be rich with price to sales at 8.6x. PE is ok at 17.3x. Dividend yield is good at 5.8%. Unlock Premium - Try 5i Free

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Fairly small but the payout ratio is at 60%. The industrial sector and recent acquisitions looks good. The company maintained distributions, although it has not raised them. Priced well. Unlock Premium - Try 5i Free