Canadian Apartment Properties

A take-out candidate? Apartments are a hot sector. Once rent control was removed, apartments are suddenly being built. Still, there isn't enough demand. REITs like this are a good way to play this space. Its dividend though is lower than its peers. It could possibly be taken out. If you've held it for 20 years, hold onto it or you pay capital gains.

Has grown 280% over 10 years. A great way to play residential rentals in Canadian cities like Toronto.

CAR.UN vs IIP.UN He likes both as they both have exposure to apartments in the Toronto market. Both have outstanding management teams and great opportunities ahead. He would hold both of them.

(A Top Pick Jul 31/19, Up 15%) He would continue to hold this. The right space in apartment rentals at the right time. They hold assets in the Netherlands and Ireland as well.

(A Top Pick Feb 07/19, Up 14%) Rental increases in Canada are in the low teens, which is helping distributions. It remains attractive in the yield space. He remains interested in residential and industrial REITs.

The REITs are re-accelerating even among bond proxies and CAP REIT is revving up. This will outperform the market. (Analysts’ price target is $57.13)

We have such a tight market in the Toronto market where they operate, they can move rents materially. He sees a lot of upside in the stock.

Bullish on Canadian apartment sector. CAR is a growth stock, with yield. Significantly more growth for them. Likes it, a great play on the sector. Still time to get in.

The biggest apartment REIT in Canada. A good, liquid way to play the fundamentals in this space. Global analysts see the GTA of Ontario a great market area, right up there with India. He wonders what their rental rate growth might be going forward. A good name to hold.

The whole sector has been hot with rents increasing. CAR has been a great performer, but it's a lower-yielding REIT of 2.4%. He prefers higher ones like 5-7%. But this is a good grower--will that growth compensate for the low yield? Don't chase this now, but hold onto it.

(A Top Pick Aug 13/19, Up 7%) The chart looks good. It moved higher in the winter, went sideways in the summer, then resumed moving up to the present. Meanwhile, collect the dividend.

It’s probably too late to get in. The dividend will grow at 8% but the dividend is pretty small compared to a traditional REIT. It’s also very expensive. Would go for another company with higher growth rate.

Buy at current levels? Yes, because new Canadians continue to enter our cities which feeds housing demand. CAR is expensive, because it keeps growing.

An industrial or residential REIT? Both sectors are great with strong supply/demand imbalance. CAR is mostly based in Ontario and have 10,000 units they can develop--a strong pipeline. Fine managers. Look at Top Picks for an industrial REIT.

It's been sideways this year and only recently breaking out to all-time highs. The chart looks awesome and there's strong demand for rentals. And you're paid a dividend. (Analysts’ price target is $52.56)