Smart REIT (SRU.UN.TO)

Operates in the retail sector and has a very high occupancy rate. Wal-Mart (WMT-N) is one of its largest tenants. Even during the financial crisis, occupancy only fell to about 97%. Leverage and payout ratio are in check. Yield will be strong and you will probably see 2%-3% free cash flow growth going forward.

There is a theme on the downward trend of interest sensitive stocks. This one has been really hit. Chart shows a 3+ year upward trend has been broken and this scares him. The technical damage done to this REIT has been pretty severe. If you own, consider exiting your position on a rebound.

Good yield of 5.30%. He likes it. It is well diversified. They will hold their value. It’s in Alberta and that’s where you have the younger demographic.

A high quality REIT, and like all REITs has had a very good run up. Rents are going up, but the cost of money has been going down. But you are paying for that, as they are very expensive. If you want a high quality defensive holding it's fine but you are taking a bit of interest rate risk with it.

You saw a pullback over the last 6-8 weeks that makes REITs more attractive. This is one of his favourite REITs. Mostly power centers anchored by Wal-Mart. 99% stable occupancy. Possibility of distribution increase.

Has been some negative comments on REITs, saying that if Canada slows down, what is that going to do to real estate, occupancy levels, rent levels, etc. He likes REITs very much. His preference is H&R (HR.UN-T) and Chartwell Seniors Housing (CSH.UN-T). At least 10% of your assets should be in REITs.

This is a tremendous REIT. Probably worth $31-$32 and he can see almost a 20% total return from here. Just recently got its credit rating so will be able to refinance its debt even lower and for a longer duration.

REITS have been over valued for some time. We could get back in at the lows of 2013 if we are patient. It could bounce in the next couple of months and then that will be the cap on the stock into next year. If we get a pull back to 52 week range then it would be attractive as a buy.

(A Top Pick Nov 24/11. Up 14.77%.) Still likes. Great retail REIT. Approximately 99% is completely occupied. Average lease hold rate is about 8 years. Yield of 5.4% is safe. Not sure there will be a tremendous amount of capital appreciation going forward but the yield is great.

Good combination of yield, mild growth and relative safety. 99% occupied right now. If you are nervous about an economic contraction, this is a name that would stand up really well. Thinks they will probably hike their dividend as early as this quarter. Probably won’t do an equity raise until next year to finance growth or new acquisitions.

Allied Properties (AP.UN-T) or Calloway (CWT.UN-T)? Two completely different REITs so you could buy both of them if you wanted.

Have done very well with Wal-Mart (WMT-N) as their tenants. Had expected the economy to be softer such as the retail would be but was wrong. Well-managed. The one problem with Wal-Mart is that you don't make a lot of money off them. Well-managed. One of the better of the big box REITs.