SUMMIT INDUSTRIAL INCOME REIT RCPTS (SMU.UN.TO)

They're in the right place at the right time with a shift to industrial. Vacancy rates are at 10-year lows in eastern Canada where Summit deal. Summit will capture market rent growth as they roll their tenants over time. But there is an external management agreement that is one of the most egregious out there, so hold your nose. There will be leakage of fees paid to external managers. Summit will likely internalize the management team.

He has it on a hold. He likes it. He's cut back on his REITs to be cautious. This one is well-positioned, but its properties are in Toronto. He'd rather own a REIT in Alberta, given the oil recovery. He's cautious with this. If you own it, hold it
with a stop loss. Dividend of around 6%. Generally, he likes the residential/apartment REITs.

One of the smaller industrial REITs. Prefers Pure Industrial (AAR.UN-T). At the expense of retail REITs, the industrial REITs have prospered. The more that e-commerce penetration increases, the more you are going to need warehouse space to hold products. He looks for strong balance sheets and the ability to grow organically while taking advantage of some intensification development and a potential to recycle capital, and not necessarily rely on acquisitions. If this one is going to grow, they are going to need to issue equity, which can have a bit of a negative on the stock.

He prefers Pure Industrial (AAR.UN-T) for industrial exposure, because he finds the management team is a bit more dynamic and fully internalized. If you own this, you are going to benefit from the industrial trend, which creates a layer of safety for the dividend.

(Market Call Minute.) One of the cheapest industrial REITs in Canada. If you are a yield focused investor, it could be a good risk adjusted name.

He likes the industrial market. The dividend is safe at 8.5%

Because this is a bit small as an industrial, he does not invest in this REIT. He thinks there will be good solid growth this year in the industrial market, especially in the GTA. This one has low Alberta exposure and more GTA exposure. A good place to be. He is starting to see rent growth in this market. Thinks their dividend is very safe.

Small vehicle looking at the industrial space. Prefers Pure Industrial REIT.

Loves the industrial space. It is easy to build it so more supply could come on line. Properties are a little low quality, but your income is safe.

Dream Office REIT (D.UN-T) versus Summit Industrial REIT (SMU.UN-T)? In general, he really likes the industrial space, which is going to benefit the most from the improving US economy as industry picks up. Dream would have a little bit more growth opportunity while this one is fully leased, and has a longer lease term, so you won’t see as much turnover in the short term. You want turnover in the short term. However, this has a good yield. (See Top Picks.)