Tricon Capital Group (TCN.TO)

Real estate management based out of Toronto. They run closed-end funds for multi-institutional clients. Have started to do some direct real estate projects for shareholders. A good US presence and smart real estate investors. The stock is undervalued and this is a good buying opportunity. There is great upside in the US. Dividend yield of about 2.9%.

The stock is off its highs. They are a well managed company and pick their markets very well. They are not buying as actively as 4-5 years ago, but the income from those properties should hold the dividend steady for many years.

A very good way for Canadians to play the US residential real estate market. Stock is priced in Cdn$, but most of their business is in the US. The housing market is in reasonably good shape. He is confident enough to know that interest rates are not going to spike up enough to impact the US housing market.

A real estate play, mostly in the US. If you look at real estate prices or the economy in Houston, it is not as bad as what you would think from this stock price. They own 6800 residential homes, some principal investments, they do land development and mobile home development. You multiply that times 1.4 to get it back into Cdn$. All the time that the stock price has been declining, the NAV has been increasing and is around $11. Dividend yield of 2.73%.

(Top Pick Jan 20/15, Up 2.23%) He sold about $10. He had wanted to participate in the recovery of the US residential housing market.

Not sure why this has not moved because it had so much promise, and US housing has definitely picked up. They are in areas in the US that haven’t really experienced as much growth as some of the others. This is a decent play that gives you some yield as well.

Has looked at in the past. The business model makes a lot of sense. Higher interest rates are going to affect their business. They are starting to focus primarily on the US now. The size of their loan portfolio is going to have an impact. He prefers Terra Firma (TII-X) which is a smaller version of this company, and has a lot of room and growth.

He likes the business and the management team. They took a deal to the market to get a more permanent source of capital to help fund their development business. The market appetite just wasn’t there, which may have put a bit of a damper on the stock. Thinks they’ll grow through it. Have a good asset management business and single-family rental business in the US. Over time it will be fine. They tend to be pretty shrewd operators.

US housing has been fairly strong, so this should benefit from that. Had about an 18% earnings miss on their recent quarter, indicating momentum is falling. He wouldn’t add to existing holdings. Low yield of 2.4%.

Essentially a play on US housing. They bought individual US houses and leased them out. As they appreciate in value, they will sell them. Hasn’t looked at this name for about 2-3 years. Feels the US housing is probably in the 2^nd-3^rd inning.

Most people and most analysts like this name. He sees this as a buying opportunity at this level. The exposure is the US and he believes the US is a positive theme.

He thinks this is a good entry point. Its focus is on real estate in the US south, particularly those areas that are experiencing the biggest growth. There is still a tremendous opportunity for them to grow their business.

A fantastic company and one you can own for the long-term. They are going to do a lot of interesting things with their capital and with their Sidecar funds that they can invest in all sorts of projects relating to real estate. They want to be one of the largest residential real estate holders in North America. Reporting very soon, so keep an eye on it. They benefit from a lower Canadian dollar as they have a ton of real estate that they market in US$. This is now an attractive time to buy.

(Top Pick Jan 6/15, Up 27.44%) Lately they got into the development business as well as the single family houses.

In the real estate space, but it is not a REIT. They have a wonderful business model that took advantage in the 2008-2009 period to buy lots of residential properties in the US at rock-bottom prices. A well-run company. One of the names he is looking at