Sienna Senior Living Inc (SIA.TO)

This used to be mostly long-term care but is now 50/50 retirement housing, which is like leasing apartments. Prices will go up with interest rates and inflation. The dividend is safe. This stock barely budged over the turmoil of the last month. The big competitor, Chartwell, trades at a much higher multiple. (Analysts’ price target is 19.42$)

Senior living accommodations are long-term winners. This has a much lower growth rate at about 2.5% than Chartwell (CSH-T) at about 5%. Trading at around 13X, well above its five-year average at about 12X. Also, its balance sheet is a little more levered. If you own this, that’s fine, but he wouldn’t be putting new money into the name right now. He would rather go with Chartwell.

Demographically this is good. However, it has less growth than some of his other choices in stocks. If you can take marginally more risks, he would prefer a pipeline or an energy stock.

Has a number of seniors’ homes that they will be renovating over the next few years, and he is a little concerned about how that steps out on their financials. A well-run organization, and you are getting government pay homes as well as retirement homes giving you an anchor of stability while you are getting the growth on the retirement side as well. It has had a bit of a run, so perhaps you should wait for a pullback.

Chart shows a fairly good uptrend from 2013. Looking a little tired recently, but it managed to break out. Retesting old highs is always bullish. Buy on the retracement, and it should make new highs soon, within the next few months.

This has a lot of redevelopment to do, which has kept him out of the stock. For a long-term holder, he doesn’t see any particular risk. While they have expanded into retirement homes, they also have Leisure World product which receives government funding. They have to spend a lot of money taking the older products and turning it into newer products.

Management has shown to be very effective in growing through development and acquisition. They are focused in various areas but the home base is in Ontario where there is a waiting list of about 25,000 people for long-term care beds. Dividend yield of 5.27%. (Analysts’ price target is $13.35.)

Great company. They have some government-funded assets, but are also expanding more into the private pay. There is a lot of growth there. If you are a REIT investor, you want to have exposure to the seniors living space, because it is going to outperform any of the other REITs over the next cycle.

(Market Call Minute.) She likes the sector, but it is not the name she would prefer. Has an attractive yield.

He has no problems with this. If rates were to go up sharply, you would probably see a correction.

Luxury senior resident REITs? He would look at this. Likes their properties. Their cash flow payment has been pretty steady. Management is extremely good.

(Market Call Minute.) Has demographics in their favour, so they’ll continue to grow. Have had nice numbers in the recent past, and will probably continue to make acquisitions, and the stock will go higher. Also, pays a bit of a yield.

(Market Call Minute.) This gives you exposure to the seniors’ sector.

It is a good name with some recent deals in seniors’ housing. It is trading near its highs. They have years of redevelopment plans in their long term care. It will support very nice growth. Over the next couple of years it will only have 3.5% growth. It is bid up. CSH.UN-T is preferred. He would also look at REITs that were more beat up recently.

The dividend will be safe. You have seen quite a few acquisitions in this space. It is not a name for him now, but could be in the future.