Plaza Retail REIT (PLZ.UN.TO)

Has significantly outperformed its peers. He continues to be a big supporter of this. You are getting a line management, a development program and stable community-based real estate. The development they just announced in St. John’s is going to be a home run. This is one you don’t Sell.

This is a small-cap REIT, not a large company. They develop grocery anchored centres in the Maritimes. Also, have some other portfolios in Québec and a little bit in BC. Have raised their dividend every year for 17 years. Management owns a ton of stock. Yield of 5.94%.

Still very much in favour with this REIT. One of the finest real estate organizations in Canada with excellent management. Has an on balance sheet development program that adds tremendous NAV to the REIT. They don’t have to issue stock to increase the number of properties. This is one that you hold for the long-term. They have a history of raising their dividend on an annual basis.

(A Top Pick June 13/14. Up 14.61%.) (Derek was not on June 17/14, so I’m just using BNN’s figures. Bill.) He still thinks there is some additional upside in the stock. Considers this a longer term Hold. Even though it has a slightly lower yield than some investors are looking for, it has good internal growth. Very, very good management.

Had a great break out in 2014. Chart shows an uptrend that actually began in Oct/14. You can’t really go wrong with this kind of formation. Currently there is a little bit of levelling off. The higher highs and higher lows seems to be in question right now as the last low has not been taken out. You just want to make sure that it does break out over the high ($4.60?) level. Overall, this is a good looking chart.

Not a name he has owned, simply because it tends to be a smaller cap name. Trades at a discount to NAV. Broadly speaking the whole real estate sector trades at a discount to NAV, so it is roughly in line. Feels management has done an excellent job and will continue to do so, especially in eastern Canada. A bit of a rollup strategy, so they will issue equity to complete acquisitions, but when you are trading at a bit of a discount to NAV, those acquisitions are not as accretive, but luckily they are operating in secondary markets, so they can buy the properties for a higher yield. He would look to add to your holdings at around $4. There are others that he likes better that give just as good of a yield, if not a little bit higher. (See Top Picks.)

(Top Pick Dec 17/13, Up 1.83%) Still thinks it is a fantastic company. It is a developer. It creates value. Raised their dividend 17 years in a row. He is being patient with it.

(Top Pick Jan 21/14, Down 4.4%) Just converted to a REIT and then made a big acquisition. No external management firm. Management is focused on AFFO per share. Raised dividend 12 consecutive years in a row. 25% of occupancy is Shoppers Drug Mart.

Everything on this REIT has gone up except the price, such as the dividend and the earnings. Thinks this one is undervalued. Seems to have been some stubbornness to get past the $4 mark, and it is just a matter of time. Dividend of around 6%.

Smaller cap REIT invested in retail assets, no longer just in Atlantic Canada. The recent acquisition increased their leverage and payout ratio and in his opinion reduced the quality of their assets. Management knows they need to right-size the leverage by selling assets. It is probably at a 7-8% discount to NAV.

Really likes it. It has not worked out in the past. There is a delay in showing some of the growth that was possible in an acquisition they did. He continues to like and hold it.

Smaller retail REIT, mostly in Atlantic Canada until they purchased an Ontario REIT. They had to increase leverage and payout ratio to do the acquisition. They are not as attractive as in the past. They may sell of non-core assets from the acquisition in order to reduce leverage.

Bought more. Trading at a value below NAV. They paid off some debt. They will do a fantastic job.

(Market Call Minute) Good hold but not much catalyst.

Converted last year to a REIT. The opportunities they have found in the portfolio they purchased are fantastic. Thinks it should be trading at $5.