Canadian Apartment Properties (CAR.UN-T)

The pay around a 3% dividend, so considers this an income stock. The private apartment rental market they're in is very tight. Half their apartments are in Ontario which has a rent increase cap, so rent rises only 2.5% upon renewal, but over 20% if a tenant leaves. So there's room to raise rental rates to market rates. Also, they're good at selling pre-2018 properties and buying post-2018 ones which don't have rent control.

Exposed to rising interest rate payments on debt used to buy properties. Good yield is in competition with no-risk bonds. Multi-family housing. Tailwinds from immigration and housing shortage.

REIT sector has lagged with interest rates going up. Largest in Canada. Feels rental market will stay quite strong and robust. Good demand with immigration. Shortage of multi-family housing across Canada. 50% exposure in Ontario, which has rent control. Selling older properties, investing in newer and refurbishing. Yields only around 3%, but very safe, good potential for increases. Buys back stock instead of a high dividend.

Press report of offloading manufactured homes, accounts for only 5% of its business. If came through, capital would be deployed into capital recycling program to invest in more modern units.

Very good operators. Stock's done well. Muted new supply, greater demand every year. Canada's one of the leaders in population growth, and immigrants will need this type of rental. Most expensive among peers, 5% discount to NAV. Better value elsewhere, see his Top Picks.

Rental market in Canada is tight with new immigration and challenged supply. Housing market remains less affordable, so people are more inclined to rent. Interest rate headwind, but starting to stabilize. Selling mature properties to reduce rent control caps. Well positioned.

Took profits and redeployed. Not enough apartments in Canada. Threat to mess with the REIT tax structure has gone away. Rent market is very tight, with rents going up at least 6-8%. Only issue is rent control in Ontario.

It has pulled back with interest and bond yields.The apartment rental space is tight and demand is high. Since it is very difficult to buy a home now, there is less incentive for people to stop renewing so they are not getting double digit rent increases. However there are still good fundamentals in the Canadian market with the huge immigration flow into Canada. It hasn't been increasing its dividend for a while but is buying back stock.

Both are quality. Likes both sectors. Likes both, but if he had to choose, he'd pick GRT.UN.

In Quebec and BC, but CAR.UN is mainly a play on Toronto, a fantastic multi-family market, but there is rent control. Great supply/demand fundamentals, but hard to get the cashflow. Outperformed peers, so pullback is understandable.

Industrial warehouse sector continues to do quite well. GRT.UN focuses on Canada, US, and Europe, trading at a nice discount to NAV. Underperformed, not warranted. Concern about oversupply in US, but he thinks they're in a good position. 

Rents are rising like crazy. CAR.UN holds a blend of rent-controlled and not-controlled apartments. They can also build units. He expects city governments will face enough pressure to chance zoning laws and allow apartment buildings. Pays a decent dividend and run by superb managers. 

Last August, the housing market was probably going to correct as rates rose. The housing market corrected and is now stabilizing. Now, there's an immigration boom into Canadian, so rent growth and demand will remain strong. He sees growth ahead.

Bought this a year ago. There's a chronic undersupply of Canadian housing that will benefit CAP REIT. Shares pulled back last year due to rising interest rates. Also, Ottawa wants to boost immigration by 500,000 over the next few years that will drive demand. CPA REIT is selling older properties and buying luxury apartment buildings that don't have rent control. The dividend is around 3%. Good long-term growth.

You won't go wrong with either. Thinks highly of management for both. Both are concentrated in Ontario. IIP.UN is smaller, more nimble, with a focus on Toronto-Ottawa-Montreal and a growing presence into Vancouver. CAR.UN gives exposure to GTA and across Canada. If he had to choose, he'd pick IIP.UN with its 25% discount to private market value, lots of value in the portfolio.