Pure Multi-Family REIT LP (RUF.U.V)

An apartment REIT, similar to Milestone (MST.UN-T), but higher quality. This is an opportunity for a Canadian investor to participate in the growth in the US. It is really targeting a lot of growth in Texas and in Phoenix. Have recently been working in the internalization of management.

(Market Call Minute) Canadian company owning US real estate. He prefers others listed in New York.

(Market Call Minute.) He likes this, but would not overweight it, because it is more residential. Likes commercial real estate a lot better.

US garden style apartments, mostly in Texas. If you own, you have had a currency negative against you. A competing company, Milestone REITs (MST.UN-T) has outperformed this by an easy 10% percentage points. He would be buying at this point if you believe 1) the currency will work for you and 2) it has lagged, so there will be a performance pull-up.

An income play. A Canadian REIT that invests in the US. This gives you the opportunity to get a yield that is US$ earnings. Stock fell off recently because of their Texas portfolio. The reality is that Texas is not affected by oil, Houston is, and they don’t have properties in Houston. Dividend yield of 7.92%.

Has pulled off slightly over the last little while, which is an opportunity. In this case, you are buying US$ exposure, which is a good place to be. You get the non-Houston Texas apartment market which is very safe.

(Top Pick Nov 13/14, Up 56.59%) He took a little off the table, but it is still a large position. This is still a cheap stock and is a great opportunity to get into the US apartment market.

(Market Call Minute.) Very, very undervalued. Probably the 2^nd cheapest apartment REIT in Canada, next to Northern (NPR.UN-T). It has garden style communities in the US. Relatively good payout ratio.

Garden style apartments in Texas. An excellent portfolio and you are buying these apartments at a discount. You also get the benefit of the weaker Canadian dollar.

Mostly homes in the US, so it is a play on the recovery in housing in the US. Management is focused on more than one company and he does not like that. He prefers TCN-T. He has exited out of RUF.UN-T. Sell half or hold, but do not increase.

Sell Killam Properties and buy Pure Multi Family REIT? These are 2 very, very different entities. Valuations are a little less discounted than they are with Killam, which is dirt cheap. The biggest risk with this is that you are going to see new supply come onto the market in the US at the end of 2016 and the beginning of 2017. This means less rent growth, which has been on a huge tear in the last 3-4 years. He prefers Killam.

This buys apartments and residential homes in the US. He loved that space up until a couple of months ago because of the recovery in the US housing market. There is some association with Pure Industrial REIT (AAR.UN-T), and he wants them to do one thing and one thing only. He would avoid this.

Listed here, but has US operations. He likes $0.80 dollars. Whenever there is an extra layer of complication it is often an opportunity. This one being a small cap in a cross-border structure was just enough to make a few investors question it. That was a tremendous opportunity. The stock is very cheap. He thinks this is worth $5.70 in US dollars. Yield of 7.4%.

(A Top Pick April 29/14. Up 18.52%.) US assets in Texas and Arizona. Because of this, it is dominated in US$. He still likes this and feels it is still an undervalued opportunity.

A recent IPO. Most of their multifamily assets are located in Texas. They don’t have huge holdings in Houston, so there is not the energy risk. The quality of their assets is sound. Occupancy and rents are trending higher. Trading slightly under its US$ NAV, likely because it is small and it is going to be difficult for them to grow. Its distribution yield is secure. He prefers Avalonbay Communities (AVB-N).