Yes, it’s retail, but best in class. Trades at 15x earnings, which is cheap. Spectacular management. Anchors for Walmart, which is doing well against Amazons of the world. Aggressive development in Toronto. Best tenants and assets. Diversifying and creating more margin. Yield is 5.8%. (Analysts’ price target is $32.61.)

There is a lot of debate about the REIT sector.  He is not at the point where he thinks it is time to step in.  There is a lot of competition in the holding of retail assets and with the potential of retail shop closures.  He owns WPT-T instead, which is more warehouse related.     

Which sector should I invest in: banks, REITs or pipelines? Banks. They have an oligopoly, earn steady profits, and have exposure to overseaS markets. But diversify. REITs have been neglected for many years due to exaggerated fears about a retail collapse (that Amazon will devour everyone). Retail REITs are trading below book value but have a low beta of 0.6. So, this is not a bad place to start in REITs.

 He thinks management has done a great job.  Walmart represents about 22% of their revenues.  They have a great new development just north of Toronto.  Very good managers with a 6% yield.  They have room to develop existing properties in areas where real estate values have increased. 

Walmart anchored properties. The stock came off sharply as their earnings weren’t as exciting and didn’t show as much growth. It is true that retail will see a little bit of pressure as consumers are deleveraging, but his view is that in the $30 range, this is a very attractive price. Where are people going to go to shop? They are going to go to Walmart and the areas around there. Yield of 5.66%. (Analysts’ price target is $36.13.)

He likes this company. While there are pressures in the retail market, he doesn’t think they are affecting the Walmart centres. This also has a very capable development arm giving them growth. The combination of stability and growth is a winning combination.