RioCan Real Estate Investment (REI.UN.TO)

If you don’t need income then often the best overall returns are not those with the highest yield. And Capital Gains in a taxable account are preferable. This is not the highest yield in the space, but have a high quality management team that are always looking for opportunities for growth.

She likes it. They have a lot of good opportunities through redevelopment of their sites. There are organic growth opportunities as well. Payout ratio is good and they will be able to combat this rising rate environment well.

Doesn’t know what it will take to get Canadian investors excited about this and similar companies. Although he owns it, he is not over the moon about any REIT. You have to realize that you own them for a specific purpose, and that is income. There is nothing wrong with getting 5% a year plus some capital appreciation potential.

A premier real estate company with 5% yield. If rates go up it pulls back and is a buying opportunity. Incredibly well run with great growth prospects and they are executing well in the US.

He likes the name. Strip centers with national anchor tenants. Occupancies were still in the high nineties at the beginning of the year. Hang on to it.

Stock prices are always a function of people’s opinion. The valuation on this one is about people’s feelings on real estate in Canada in general. To go materially higher they would have to increase their payout.

Considers this to be one of the benchmarks within its sector. Has always been superbly managed. Over the years people have done very well just sticking to this one. Some of their recent diversification efforts they have announced have made sense. This is an interest sensitive sector, and he thinks interest rates at some point are going to rise. When they do, CAP rates are also going to rise and prices of real estate investments may come off a bit.

This is a great company. A lot of things have been thrown at it. There was Future Shop, Target, the changing retail landscape. He still models 4.6 AFFO growth over the next couple of years. They are unlocking value by building apartments on their lands and are getting ROE’s on that of about 8%. This stock is not on sale. Currently you are paying around 19X. Payout ratio continues to improve. Almost a 5% dividend. (See Top Picks.)

One of the largest REITs in Canada. Good management. They have had to kind of move outside of Canada because of the limited amount of growth prospects. A well-run company and one of the safer ones. He thinks REITs are going to do well.

The REIT space is under pressure because people worry about higher interest rates. He thinks we are in for a decade of lower interest rates. A lot of their properties are stores and you might see a weakness in consumption. Great management and the payout ratio is not too high.

At this point in time this REIT is not one to consider. You are dealing with an onslaught of E-Commerce, and they own a lot of Big Box retailers. It is going to be a struggle. Its not going to kill their business, it’s just that the dynamics doesn’t help them. Great management. He prefers apartment REITs. (He owns their bonds.)

Very good, stable stock. Retail plazas around the country. Not a ton of growth so they are captive to interest rates. A high quality company.

There are opportunities with Target leaving. Buy it here because it has a very high quality portfolio. 73% of properties are in Canada’s 6 largest cities. The properties are where the people are. Their balance sheet is strong and they have a great development pipeline. 5% yield.

Largest REIT in Canada. About 75% of their assets are now in Canada’s 6 largest markets. Have had a large focus on bringing their asset base into urban markets which has allowed them to start developing mix-use assets in urban markets. Will probably sell off some of their non-core weaker real estate. One of his favourite companies.

It is a monthly dividend pay. A large cap, one of the better real estate plays out there. Lots of retail exposure. They held target leases and as Target exits Canada, expect some leasing at higher rents. He would shy away from a lot of office REITs in Canada.