Artis Real Estate Investment Trust

AX.UN-T

Analysis and Opinions about AX.UN-T

Signal
Opinion
Expert
COMMENT
COMMENT
September 8, 2015

Thinks the yield is very sustainable. Payout ratio is well below 80%. This is a name you can buy and hope to see dividend growth out of, provided you get some cooperation out of the Western Canadian economy. Office exposure in Alberta represents about 20% of their NOI, so it is not that significant. However, it is B and C type quality office exposure, and there are going to be some concerns about their ability to sustain high occupancy and rent growth. The positive is that they have significant US exposure, which accounts for about 25% of their operating income. Yield of just under 9%.

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Thinks the yield is very sustainable. Payout ratio is well below 80%. This is a name you can buy and hope to see dividend growth out of, provided you get some cooperation out of the Western Canadian economy. Office exposure in Alberta represents about 20% of their NOI, so it is not that significant. However, it is B and C type quality office exposure, and there are going to be some concerns about their ability to sustain high occupancy and rent growth. The positive is that they have significant US exposure, which accounts for about 25% of their operating income. Yield of just under 9%.

Andy Nasr

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Price
$12.160
Owned
Unknown
HOLD
HOLD
July 27, 2015

If you bought it for its sustainable yield, should hold it. It is being tagged with its Calgary exposure. The market is ignoring their US exposure. Wait through the cycle.

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If you bought it for its sustainable yield, should hold it. It is being tagged with its Calgary exposure. The market is ignoring their US exposure. Wait through the cycle.

HOLD
HOLD
July 2, 2015

Payout ratio is below 100% and the balance sheet is in really good shape. They have internalized management. Have some US exposure, which is about 20% of their net operating income, which should offset some of the weakness that we are seeing. He would be comfortable in picking it up here. Dividend is rock solid.

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Payout ratio is below 100% and the balance sheet is in really good shape. They have internalized management. Have some US exposure, which is about 20% of their net operating income, which should offset some of the weakness that we are seeing. He would be comfortable in picking it up here. Dividend is rock solid.

WEAK BUY
WEAK BUY
June 23, 2015

The stock price is looking pretty attractive. They have US assets that are performing very well. There is a bit of concern with a development in Houston and they have some Calgary office space. He would have liked to see them sell this at the peak of the market and they didn’t. The market is still giving them a hard time for it. If you are a yield investor then buy in and hold for a long time.

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The stock price is looking pretty attractive. They have US assets that are performing very well. There is a bit of concern with a development in Houston and they have some Calgary office space. He would have liked to see them sell this at the peak of the market and they didn’t. The market is still giving them a hard time for it. If you are a yield investor then buy in and hold for a long time.

HOLD
HOLD
June 5, 2015

REITs sold off because of interest rate fears. The Canadian economy is not accelerating at the same rate as the US economy. Also, seasonally there tends to be some favouritism toward some of the interest sensitives over the summer. (See Top Picks.)

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REITs sold off because of interest rate fears. The Canadian economy is not accelerating at the same rate as the US economy. Also, seasonally there tends to be some favouritism toward some of the interest sensitives over the summer. (See Top Picks.)

COMMENT
COMMENT
May 20, 2015

Price has dropped. When rates go up, that generally hurts real estate or REIT market. Very diversified and great managers of assets. Have most of their exposure in Manitoba, Saskatchewan and a little bit in Alberta. Also had diversified over the last 4-5 years getting into the US. In the last quarter their occupancy actually went up, partly due to the US exposure. The biggest concern is the West and its weakness. The office segment is not his favourite place to be. It is only trading at about 12X AFFO. He tends to like the apartment space better. This is cheap and he would probably be a buyer more than anything else.

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Price has dropped. When rates go up, that generally hurts real estate or REIT market. Very diversified and great managers of assets. Have most of their exposure in Manitoba, Saskatchewan and a little bit in Alberta. Also had diversified over the last 4-5 years getting into the US. In the last quarter their occupancy actually went up, partly due to the US exposure. The biggest concern is the West and its weakness. The office segment is not his favourite place to be. It is only trading at about 12X AFFO. He tends to like the apartment space better. This is cheap and he would probably be a buyer more than anything else.

WATCH
WATCH
May 15, 2015

The market is weighing on this one because of their Alberta exposure. Part of it is because they have suburban offices. The US portion of their portfolio has been doing very, very well. As soon as the market can get a little bit of comfort with Calgary, this is a name that you would want to jump in on. Very attractive and very sustainable yield.

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The market is weighing on this one because of their Alberta exposure. Part of it is because they have suburban offices. The US portion of their portfolio has been doing very, very well. As soon as the market can get a little bit of comfort with Calgary, this is a name that you would want to jump in on. Very attractive and very sustainable yield.

COMMENT
COMMENT
April 22, 2015

He is underweight the stock, but does like the valuation. This is not hinging on the oil prices, so the question is, at what point does the market get over this.

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He is underweight the stock, but does like the valuation. This is not hinging on the oil prices, so the question is, at what point does the market get over this.

BUY
BUY
March 19, 2015

He would be adding to it here. It was punished because of western Canada exposure but it is overblown. They also have 25% US exposure. This is a good entry point. 80% payout ratio.

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He would be adding to it here. It was punished because of western Canada exposure but it is overblown. They also have 25% US exposure. This is a good entry point. 80% payout ratio.

TOP PICK
TOP PICK
March 18, 2015

NAV is close to $17. This has a very stable yield. Payout ratio has been brought down to about 85%. Investors are probably not giving them enough credit in that about a quarter of their assets are now in the US. Expects they will face some headwinds with respect to their Calgary office exposure. Yield of 7.31%.

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NAV is close to $17. This has a very stable yield. Payout ratio has been brought down to about 85%. Investors are probably not giving them enough credit in that about a quarter of their assets are now in the US. Expects they will face some headwinds with respect to their Calgary office exposure. Yield of 7.31%.

COMMENT
COMMENT
March 3, 2015

This is something he has been spending a little bit more time on. Has been tarred with the Calgary brush. It has a large Calgary exposure with a lot of it in the suburban office or beltline office. There is a question that with the oil decline, how much this is going to affect Calgary. However, he is seeing the US portfolio is performing very well, and the stock is cheap. If you have a long-term view, you can get in now, otherwise you may hold off a bit.

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This is something he has been spending a little bit more time on. Has been tarred with the Calgary brush. It has a large Calgary exposure with a lot of it in the suburban office or beltline office. There is a question that with the oil decline, how much this is going to affect Calgary. However, he is seeing the US portfolio is performing very well, and the stock is cheap. If you have a long-term view, you can get in now, otherwise you may hold off a bit.

COMMENT
COMMENT
January 23, 2015

The only concern is that a lot of the real estate is in Calgary, but they do have some pretty good leases in Calgary. The real question is how long we are going to be in the doldrums on oil prices. Has not added to his position, but has reduced when oil prices started coming down. Still too early to tell, but will be adding to this at some point.

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The only concern is that a lot of the real estate is in Calgary, but they do have some pretty good leases in Calgary. The real question is how long we are going to be in the doldrums on oil prices. Has not added to his position, but has reduced when oil prices started coming down. Still too early to tell, but will be adding to this at some point.

COMMENT
COMMENT
January 20, 2015

Office and industrial out West, but is more in Manitoba. Really good management. Valuations are on the higher side. Have some assets in Minnesota which gives you a little more diversification. Management team adds a lot of value to the bottom line. Trades at about 15X price to AFFO. Has always been rumoured as a possible takeover target, but he doesn’t think that is going to happen for quite a while. Gives you a 7%+ yield.

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Office and industrial out West, but is more in Manitoba. Really good management. Valuations are on the higher side. Have some assets in Minnesota which gives you a little more diversification. Management team adds a lot of value to the bottom line. Trades at about 15X price to AFFO. Has always been rumoured as a possible takeover target, but he doesn’t think that is going to happen for quite a while. Gives you a 7%+ yield.

TOP PICK
TOP PICK
January 9, 2015

A great buying opportunity. Trading at a 15% discount to NAV. Everyone is throwing up their arms saying there is an excess supply in Calgary and low commodity prices are really going to hurt them. If you drill down into the numbers, their Western Canada exposure is significant, but the Calgary office exposure is very limited, at less than 15% of their net operating income. The offshoot is that they have a whole bunch of US exposure, about 25% of their net operating income, which is really benefiting from the appreciation of the Cdn$. Payout ratio is about 85%. Internally managed. 7% yield.

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A great buying opportunity. Trading at a 15% discount to NAV. Everyone is throwing up their arms saying there is an excess supply in Calgary and low commodity prices are really going to hurt them. If you drill down into the numbers, their Western Canada exposure is significant, but the Calgary office exposure is very limited, at less than 15% of their net operating income. The offshoot is that they have a whole bunch of US exposure, about 25% of their net operating income, which is really benefiting from the appreciation of the Cdn$. Payout ratio is about 85%. Internally managed. 7% yield.

STRONG BUY
STRONG BUY
December 29, 2014

Has been growing more in the US. Pulled off recently due to Western Canadian exposure. The portfolio continues to perform well and they are focusing on the US market to diminish the risk of Calgary. It is probably a good time to be getting in.

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Has been growing more in the US. Pulled off recently due to Western Canadian exposure. The portfolio continues to perform well and they are focusing on the US market to diminish the risk of Calgary. It is probably a good time to be getting in.

PARTIAL BUY
PARTIAL BUY
December 8, 2014

It is in Western Canada, which is getting sold off now, and it is offices, which are experiencing over supply now. These are being overdone, pushing the stock price to the down side.

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It is in Western Canada, which is getting sold off now, and it is offices, which are experiencing over supply now. These are being overdone, pushing the stock price to the down side.

COMMENT
COMMENT
November 13, 2014

Have a diversified portfolio in different sectors. There is a lot of Western Canadian focus. Have also been going into the US a lot. That is a strategy that could be hit/miss. Had expected better earnings
this last quarter. They are into development now in Texas. He always gets worried about a Canadian
that gets too get aggressive in a market that is not their home market. A safe company with a safe payout and a decent yield. Doesn't expect it will have as much upside growth.

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Have a diversified portfolio in different sectors. There is a lot of Western Canadian focus. Have also been going into the US a lot. That is a strategy that could be hit/miss. Had expected better earnings
this last quarter. They are into development now in Texas. He always gets worried about a Canadian
that gets too get aggressive in a market that is not their home market. A safe company with a safe payout and a decent yield. Doesn't expect it will have as much upside growth.

BUY
BUY
November 12, 2014

Management is solid. It is a western story. It is about 20% in the US. They had a hiccup related to a lease termination there. Their occupancy rate went down from 96 to 94% and it affected their AFFO. It is just a matter of timing and they will lease it back up. The payout is not too heavy. Thinks it will continue to grind higher, but it is late stages.

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Management is solid. It is a western story. It is about 20% in the US. They had a hiccup related to a lease termination there. Their occupancy rate went down from 96 to 94% and it affected their AFFO. It is just a matter of timing and they will lease it back up. The payout is not too heavy. Thinks it will continue to grind higher, but it is late stages.

TOP PICK
TOP PICK
October 16, 2014

Large proportion (20%) of their assets are in the US and the rest in the four western Canadian provinces. Took advantage of very open capital markets to grow its portfolio on the asset side accretively. They brought down the payout ratio and the leverage. The distribution is over 7%. Thinks the NAV is approximately $17.

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Large proportion (20%) of their assets are in the US and the rest in the four western Canadian provinces. Took advantage of very open capital markets to grow its portfolio on the asset side accretively. They brought down the payout ratio and the leverage. The distribution is over 7%. Thinks the NAV is approximately $17.

PARTIAL BUY
PARTIAL BUY
October 2, 2014

Bought US properties when dollar was close to par. The issue is that there is some suburban office exposure in Western Canada. The dividend is sustainable. He would nibble away here, but you may get a better opportunity in the coming months.

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Bought US properties when dollar was close to par. The issue is that there is some suburban office exposure in Western Canada. The dividend is sustainable. He would nibble away here, but you may get a better opportunity in the coming months.

Andy Nasr

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Price
$15.180
Owned
Unknown
SELL
SELL
September 25, 2014

(Market Call Minute)They don’t have particularly great quality buildings. They don’t have a focused strategy and there is no organic growth profile there.

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(Market Call Minute)They don’t have particularly great quality buildings. They don’t have a focused strategy and there is no organic growth profile there.

WEAK BUY
WEAK BUY
September 10, 2014

We are in the 8th to 10th inning of a baseball game with an extra inning. It is about 14 times AFFO. He thinks you get a 6-8% rate of return and nothing more than that. They are good operators. They are good at adding value. They are at a high price level and there is always a feeling they could be taken out by a bigger entity.

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We are in the 8th to 10th inning of a baseball game with an extra inning. It is about 14 times AFFO. He thinks you get a 6-8% rate of return and nothing more than that. They are good operators. They are good at adding value. They are at a high price level and there is always a feeling they could be taken out by a bigger entity.

HOLD
HOLD
September 5, 2014

Nice yield and diversified across North America. They are smart guys.

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Nice yield and diversified across North America. They are smart guys.

COMMENT
COMMENT
August 22, 2014

A high-quality REIT. In Western Canada and expanding into the US. Suffers from somewhat limited growth and being interest-rate sensitive. 6.7% yield.

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A high-quality REIT. In Western Canada and expanding into the US. Suffers from somewhat limited growth and being interest-rate sensitive. 6.7% yield.

HOLD
HOLD
August 8, 2014

Likes this company and the fact that it is mostly Western-based, which is where the growth is.

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Likes this company and the fact that it is mostly Western-based, which is where the growth is.

BUY
BUY
July 31, 2014

They are upping their exposure into the US, which is currently at about 24%. Their goal is 30%. A higher leveraged name, but their balance sheet is improving. He sees in-line growth of around 3.5%, which is equal to its diversified peers. Payout ratio is trending down and looking a lot better.

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They are upping their exposure into the US, which is currently at about 24%. Their goal is 30%. A higher leveraged name, but their balance sheet is improving. He sees in-line growth of around 3.5%, which is equal to its diversified peers. Payout ratio is trending down and looking a lot better.

WEAK BUY
WEAK BUY
July 15, 2014

They issue more and more shares. This is a way to grow. But in the mean time every time the stock goes up you worry about another equity issue and it resets the price. He is concerned about how soon they did the most recent acquisition after the previous one, but it is attractive here and he would not mind adding a little here.

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They issue more and more shares. This is a way to grow. But in the mean time every time the stock goes up you worry about another equity issue and it resets the price. He is concerned about how soon they did the most recent acquisition after the previous one, but it is attractive here and he would not mind adding a little here.

BUY
BUY
July 9, 2014

Diversified REIT that invests in office, industrial and retail. Management team is focused on reducing leverage and payout ratio. 50% leverage right now. Going forward the key is to make sure they have a laddered maturity profile for their debt. They should be just fine.

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Diversified REIT that invests in office, industrial and retail. Management team is focused on reducing leverage and payout ratio. 50% leverage right now. Going forward the key is to make sure they have a laddered maturity profile for their debt. They should be just fine.

BUY
BUY
July 8, 2014

A great management team. Made a strategic decision to explore in the US when assets were cheap. About 25% of the portfolio is US. They have retail, office, industrial. They execute well. They will be slightly hurt by the recent Canadian dollar appreciation. They are trading nicely and not too expensive, but interest rates can get in the way.

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A great management team. Made a strategic decision to explore in the US when assets were cheap. About 25% of the portfolio is US. They have retail, office, industrial. They execute well. They will be slightly hurt by the recent Canadian dollar appreciation. They are trading nicely and not too expensive, but interest rates can get in the way.

PAST TOP PICK
PAST TOP PICK
June 13, 2014

(A Top Pick June 17/13. Up 8.06%.) People have become more comfortable with this, and have started giving it a higher multiple. Recently did a large equity raise so they have some extra cash on the balance sheet. He is watching to see what they do with this.

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(A Top Pick June 17/13. Up 8.06%.) People have become more comfortable with this, and have started giving it a higher multiple. Recently did a large equity raise so they have some extra cash on the balance sheet. He is watching to see what they do with this.

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