Smart REIT (SRU.UN.TO)

Which sector should I invest in: banks, REITs or pipelines? Banks. They have an oligopoly, earn steady profits, and have exposure to overseaS markets. But diversify. REITs have been neglected for many years due to exaggerated fears about a retail collapse (that Amazon will devour everyone). Retail REITs are trading below book value but have a low beta of 0.6. So, this is not a bad place to start in REITs.

Has 32 million sq. ft. of retail space, 60% in Ontario. The whole retail challenge remains, but he sees the pendulum swinging back (to some degree) back to brick-and-mortar. Pays over 6% dividend. (Analysts' price target $34)

He thinks management has done a great job. Walmart represents about 22% of their revenues. They have a great new development just north of Toronto. Very good managers with a 6% yield. They have room to develop existing properties in areas where real estate values have increased.

A very well-managed REIT. Has a portfolio of basically Walmart anchored tenants for its plazas. Has a good development team in place, so he expects they will continue to see growth. Very reasonable dividend at just over 5%. A name that you could buy over the next several years.

Walmart anchored properties. The stock came off sharply as their earnings weren’t as exciting and didn’t show as much growth. It is true that retail will see a little bit of pressure as consumers are deleveraging, but his view is that in the $30 range, this is a very attractive price. Where are people going to go to shop? They are going to go to Walmart and the areas around there. Yield of 5.66%. (Analysts’ price target is $36.13.)

REITs have had a big rally this year. Part of it is lower rates, but the other part is that they are no longer going to be under Finance, but will have their own sector. Now that we are approaching that date, he feels that some investors are taking profits, and this one may have been more affected more than others. A very well-managed company. Very expensive, trading at a premium to NAV. He really likes their operations.

He likes this company. While there are pressures in the retail market, he doesn’t think they are affecting the Walmart centres. This also has a very capable development arm giving them growth. The combination of stability and growth is a winning combination.

(Market Call Minute) Well diversified good management team, decent yield and good payout ratio.

(Market Call Minute.)

(A Top Pick June 23/15. Up 38.13 %.) A portfolio of Wal-Mart (WMT-N) anchored strip centres. Very value focused and very stable. At the same time, you have a world class development team. Having both stability and growth in one vehicle, makes it very attractive. A lot is priced in now, but he still likes it. Trading at about 20% above consensus NAV, which is normally his area, but he is taking a bit of an extra positive look, and it is still offering an attractive level, so is hanging on for now.

(Market Call Minute.) A great REIT. Trades at a reasonable valuation relative to the others. 98% occupancy. Very good dividend.

(Top Pick Apr 18/16, Up 3.99%) He holds it for a low beta. He will collect dividends.

(A Top Pick April 22/15. Up 18.81%.) Has a core portfolio that is Walmart anchored. If you believe in more difficult times, more people will be going to Walmart along with their neighbouring stores.

They have very stable cash flow, are a defensive position, and it is breaking out, looking good technically. It will be about a 6 months hold.

(Market Call Minute.) This has done very well. However, retail stocks have gotten pretty expensive. He would be selling this and buying RioCan (REI.UN-T).