RioCan Real Estate Investment (REI.UN.TO)

Worth about $31 giving you a 15%-16% total return. Expansion into the US has been very, very successful. Great management team. Yield of 5.17%.

Very high quality REIT. If you want exposure in the retail oriented space, this is a good name. Very experienced. Expanding in the US. Will benefit when Target moves into Canada this year.

(Top Pick Jan 12/12, Up 8.29%)

Starting to get a little more constructive on this. Used to trade at a very big premium relative to the peer group and has come down recently. Owns retail properties that are typically anchored by national tenants. There probably is not going to be as much growth on a “per share basis” relative to other REITs because of their existing high occupancy. Relatively fairly valued.

A bit of a US housing play because they got so big in Canada and are making measured purchases of shopping centers in TX and PA. Has pulled back so that it is a 5.3% yield. It is a safe play.

Thinks the dividend is very safe and recently increased it. Balance sheet is rapidly coming to shape. Very well run. He can see it going up by 10%-11% including dividends. Great long-term hold.

As a long term hold. He has always shied away from it based on valuation, however, it has underperformed compared to other REITs. It is still close to overpaying. He prefers 85-90%. They just increased distribution but he would have preferred they had been more cautious. It is still a best in class stock and the distribution is not at risk unless there is something out of the blue that happens. He would prefer to be a little more defensive at this time.

Better return that cash, primer REIT in Canada. Lots of new entries in to Canadian retailing. Would not hesitate to add more to existing positions. Hold to 3 to 5 years.

5.1%. Canada’s largest REIT, retail properties across Canada. 15% NOI comes from US. Distribution is absolutely safe and just announced a distribution increase. Will be a big beneficiary to US retailers coming to Canada. Payout ratio will come down even further and there may be distribution increases. Also, expects unit price increases.

Good name for dividends for the next couple of years. Lots of malls opening up. May get opportunity to boost rents for tenants already in their malls. Dividends should be safe and increase over time.

A terrific REIT and extremely well managed. Probably fully valued at this time. Don’t expect it to be a homerun in a short period of time. Good management. This is one that will let you sleep at night.

You can’t really go wrong with this one. Largest one in Canada and very well diversified. Retail occupancy has held very steady in the last 5 years, close to 98%. Every time a lease is coming up for renewal, they are charging them at least 10% more. 5.1% yield. He prefers H&R (HR.UN-T) for a large cap name that is very liquid and feels the valuation is a little bit more compelling with probably more distribution growth during the next 12-18 months.

Very successful and well run. Owns sort of power centers in parts of Canada and are expanding into the US. Price has run up significantly and is trading at 18-19 times AFFO.

Target will move into a lot of their locations next year so potentially they can raise rents. One of the safest.

REITs have done well because the yield (versus the 10 year bond yield) is extremely attractive. Still a very attractive play. Overvalued relative to their historical valuation so he is watching very carefully.