Michael Missaghie Pure Multi-Family REIT LP RUF.U-X COMMENT Mar 18, 2015

They report differently and more conservatively than other REITs and he believes the stock got hit inordinately. It will come back. One quarter does not change the business outlook. Don’t panic out of this. It will recover.

Their asset class is one of the more coveted by institutions, because they are a form of lower income housing. Apartments, versus home ownership, is where a lot of people are migrating as people can’t get approval for mortgages. As a result, there has been significant rental growth in the US market, and homeownership continues to be at a multi-decade low. Hopefully that starts to reverse course, but in the interim, there is a lot of momentum for US apartments. Prefers Equity Residential (EQR-N). Dividend yield of 6%.

Do you see any dividend increases? They had a couple of soft quarters. He thinks the easy money in the US is gone. He thinks they have the funding to expand and it trades at good value. There is no ability to go higher. Would stand pat.

Has a $7.25 target. We need rentals, which is where its cash flow comes from. Sustainable 6.3% yield. He hadn't heard of breaking news that Electra America proposes to acquire Pure at US$7.59 (CDN$9.79) per share.

(A Top Pick May 25/17 Up 4%). On Monday this week a US company said it has put a bid out for the company. The price is rumoured at $9.70 Canadian. He is one of the largest shareholders in this company. The largest shareholder group is encouraging management to engage in the offer.

They own apartments in the U.S. sunbelt like Dallas. They've done a good job of executing. The recent rogue takeover attempt did lead to a positive thing--the company has formed a committee to facilitate a possible sale. They own some good properties, but the stock is now expensive. Their last numbers were good. They raised rents and have few vacancies. But it's speculative now and you could lose.