Nexus Real Estate Investment Trust (NXR.UN.TO)

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

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The monthly yield is at 7.6%. The small size adds some risk, but the TSX listing will probably raise its profile. There are no huge expectations on gains due to relatively slow growth. However, the industrial REIT sector looks good and the stock has done well. Unlock Premium - Try 5i Free

A very small REIT that has a very interesting business model. They were working with companies that go into industries, especially Alberta focused, to see if they needed financing. They would buy the buildings in exchange for a long-term lease. Considering what has happened to the Alberta economy, this is really not the place to be, but could very much take advantage of the stress. Too early to be in this name.

Sometimes a yield is high and is a red flag because the market expects it to be cut. Doesn’t think that is the case here. It is the lack of liquidity. A small market cap and an unknown. Expects they are going to make an accretive acquisition and the stock is going to go up, which will make the yield go down. Yield of around 9%.

Small vehicle looking at the industrial space. Too small for him, but has good management.

A little too small for him. Very interesting story and very unique. It's a bit niche. Commercial real estate and industrial focused. They work with tenants to find their mission-critical business for the
small business and then do a sales leaseback and help them grow their business over time. Anytime there is a small REIT you have to be a little careful as sometimes you can't get out. Well run. You should have a long-term horizon on this one.

This would not be his favourite. This is a multi-family REIT. Some of the ones he likes a little bit better have internal management and better balance sheets. If you are buying this, you are really buying it for the yield. You can get better risk/reward with similar yield with something like a Pure Multi-Family REIT (RUF.UN-T) or Milestone Apartments REIT (MST.UN-T), which have US exposure, but you should see pretty significant rent growth during the next couple of years.