Tricon Capital Group (TCN.TO)

It was buying up misery properties in the US that were being foreclosed on, but is now into a more permanent and normal stage of property development, sales and rentals. Chart has a steady upward move.

A great company. Asset manager focusing on the housing market, mostly in the US. Had a great little run lately, but that was after being stagnant around the $8 range for some time. The housing recovery in the US is really taking hold. They have a large portfolio of single-family rentals. Just announced a securitization of that, so they will be able to get debt out of it and reinvest that capital.

They continue to deliver. The company has done very well. They just bought several hundred single family homes in the US. They also have a land development business. It is a bit expensive.

(A Top Pick March 17/04. Up 24.96%.) Has taken the money out of this recently on a valuation basis. It hit his target price of $10-$11 range. They own US housing, and also have funds that they manage where they get management fees.

If you are looking for almost exclusive US exposure, this would be it. 90% of their assets and revenues come from the US. This is in the single-family housing business, both through ownership as well as managing other people’s investments. Very well-managed company. Dividend yield of about 2.4%.

(Top Pick Feb 28/14, Up 23.31%) Smart management. They started buying single family homes in the US south when they were cheap. He sold recently to take profits.

This is a beneficiary of the weaker Cdn$. They have been pretty early in the trend to have bought properties in the US, mostly in the south. Feels it is relatively safe. They purchased things in contiguous geographic blocks that are saleable, but it is still early enough that discussion has probably not been had about any exit strategy. 6.2% yield.

He wants to own residential or rental in the US. This company has 3 main businesses. 1) Asset management, 2) single-family rental in mostly south west Florida and 3) Arizona. Trades at about 20% discount to its NAV, but 2 things are going to push at higher. 1) All their assets are in US dollars and 2) they are about to get cheaper financing through securitization. Good managers and good assets. This should be trading at around $10. Yield of 2.71%.

(A Top Pick Jan 16/14. Up 19.57%.) Executing on their strategy of buying up a swath of residential properties in the US. Have a target of 5000 single-family residential homes. Occupancy rates are quite strong with about 83% on homes (92% on those they have owned for more than 6 months). Provides a good income, but they also have the optionality, down the road, of selling them for profit. Probably a $10 stock at some point in time.

(A Top Pick Dec 2/13. Up 17.48%.) Buying up properties in the US is their most notable business along with rental housing, so the timing was good. At some point they will sell their portfolio for a gain. A shorter term catalyst is the development of new real estate projects. Expects there are some catalysts coming up in this area. Well-managed company.

Single-family rental homes in the US. This is an asset management company with residential real estate exposure, land exposure and homebuilding exposure. A great Canadian success story and we really need more of these. Great capital allocator. Management has really shown that they can create value for shareholders. The challenge they are faced with is, can they demonstrate to the market that they can sell assets at the right time. That is what a lot of investors, including him, are looking for. Meantime, investors are collecting a decent dividend yield. Trading below NAV.

It has US assets so you benefit from the Canadian dollar. They just made an acquisition that has added to their assets. They buy individual, distressed homes in the Southern US. This is incredibly cheap, a 15% discount to its NAV. Their management fees keep going up. It is the US housing market, but a Canadian name.

Has gone sideways and looks like it is building a bit of a base. To take it to the next level, it would require US housing prices to accelerate as well as more activity.

The US housing market is treading water. TCN went into single family housing and manufactured housing. Sentiment surrounding the housing market in the US has caused it to underperform recently. You have a very well aligned management team. Stock is worth $8-$9. They need to deliver on free cash flow growth.

Real estate company but holding it in Texas. Do a pretty good job of investing mostly in the US. It is a pretty good place to invest. You should hold this one. If it fell off it would be a pretty good stock to buy.