OneREIT (ONR.UN.TO)

His only concern with this is that the payout is tracking at 121%, which is higher than all the others. However the bulk of their growth is coming out of Saskatchewan, which is one of the areas in Canada that is growing the fastest. This is one that has good growth and management, so far, have been able to deliver. 9% yield.

9.4% dividend yield is very high when you compare it to the balance of the REIT industry. Their adjusted funds from operations payout ratio is around 120% right now. He wouldn’t be comfortable with that level. They are also facing some pressures on assets that are Zellers anchored and have not been taken up by Target (TGT-N). However, have done a good job of trying to grow into that distribution. If they are able to deal with the Zellers’ assets as well as complete some acquisitions over the next 12 months, they probably have a better chance of bringing that payout ratio over 100%.

This one is tricky as the payout is 120% more than they earn. This is sustained by the fact that they have a large corporate owner who is helping the cash flow. They won’t cut the dividend because the corporate sponsor would feel the effects. Earnings were a little weak and they are having a lot of operational issues. Not a bad company, but the wrong structure.

This REIT pays more than it should. However, there is a comfort level for many investors in that it has a large weight by Smart Centers. The amount of overpayment is not enough that it will be changed but he prefers not to invest in this type of the vehicle. However, you get close to the retail market whose numbers are improving. 9.2% yield.

Has not owned this because its payout ratio was well above 100%. But he gives them credit for acquiring a number of assets over the last 2 years that has increased their market cap as well as brought down the payout ratio. 105%-110% payout ratio which is still a little bit too high for him. 8.7% yield and he doesn’t think there will be a dividend cut anytime soon.

Dividend, right now, is not being covered by underlying cash flows so payout ratio is in excess of 100%. Feels management is trying to high-grade the portfolio. In the process they have undertaken some redevelopments and there has been some vacancy associated with those redevelopments. On a pro forma basis he feels they can cover the dividend but that is unlikely to happen until mid-2014. His NAV target is about $6.25.

Cheap so you are going to get a low to mid-teen total return. However, looking at some of the comparative alternatives, you can get better than that with other names such as Calloway (CWT.UN-T) where on a risk adjusted basis, you get higher quality real estate in core markets with a lower payout ratio and a better balance sheet and a better total return.

8.4% yield. 20% of business is owned by Smart Centers. Trading at a discount to all the REITs out there. Smart centers gives them access to great management and great relationships. Primarily commercial properties. Zellers was about 10% of their business and now they will be able to find some really interesting tenants for those spaces.

Not a bad REIT. Payout ratio is a concern for a number of people. They will have to spend capital to renovate some of its properties. Zellers in some of their properties. Investors are reasonably compensated for the risk. Not a lot of capital appreciation.

(Market Call Minute.) Weaker assets. Great management team but high leveraged. Can’t see how payout gets below 100% without a cut.

Yield is reasonably good. So well sponsored and has the Calloway REIT (CWT.UN-T) as major investors. Some interesting new developments. Had some issues with the Zellers stores and weren't sure what they were going to do with them. Market had anticipated that and didn't bat an eye when they announced they were going to lose them. Expect it will evolve in a fairly positive way. Dividend yield of almost 8%.