Gavin Graham Canadian Real Estate Investment REF.UN-T TOP PICK May 27, 2014

Very, very stable company. Dividend is incredibly sustainable. Always one of his top holdings. It is always an assumed Top Pick so he just leaves it off.

(Top Pick Nov 20/13, Up 15.74%) A core position. It was compelling value. Lower leverage, low payout ratio, but above average growth. Still likes it and it is a top holding.

(A Top Pick Nov 13/13. Up 21.27%.) If you only had to own one REIT, this would be it. Diversified so you have exposure to office, industrial and retail. Very well run. Just did an equity raise. Very deep management team.

A Value pick. This always trades at a premium. Has a very good balance sheet, excellent management, a diversified strategy and a very disciplined strategy. That disciplined strategy included investing in office buildings in Calgary. The oil situation has caused the stock to pull off. Very rarely do you get a chance to buy this REIT at a lower level. Dividend yield of 3.8%.

A core holding. There is a difference between a good REIT and what you should pay for it. This is a good entry point. He prefers BEI.UN-T however because it was punished due to the energy sector.

(A Top Pick May 27/14. Down 1.87%.) Has a nice mixture of strip malls, industrials and offices and is well diversified geographically. 4.5% dividend yield. Has managed to grow its payout by about 5% compounded for the last 5 years.

This is a very favourite name with him. In a rising interest rate environment, it will be in better shape than most because it has the least amount of debt and what debt they have is very long term. It has being driven down by their having a small amount of office real estate. A very well managed company with an excellent balance sheet.

(A Top Pick April 22/15. Up 0.66%.) This is diversified having office, retail and industrial. They are now adding a residential component across Canada. A very stable source of income, and will do well over time. They have exposure to the Alberta office market, and it is the lead company to have your money on for any recovery.

He is surprised it has done as well as it has recently. It has a component of Calgary office. They have been very proactive. Have a great leasing team. There may be some kind of a pullback in REITs between now and the new year, so wait and pick it up when you get the chance.