Pure Industrial Real Estatetrust Trust | StockChase
92
Pure Industrial Real Estatetrust Trust (AAR.UN-T)

Last Price Recorded: $6.6500 on 2017-12-14

ON STOCKCHASE SINCE Mar 2009

property mngmnt/investment
92
Pure Industrial Real Estatetrust Trust (AAR.UN-T)

Last Price Recorded: $6.6500 on 2017-12-14

ON STOCKCHASE SINCE Mar 2009

property mngmnt/investment

Pure Industrial Real Estatetrust Trust


Signal Opinion Expert
BUY

Industrial properties. It is more cyclical and more tied to the business cycle. As business gets better, it will likely be able to raise rents. It has now pulled back to the 150-day moving average, which is a good place to buy it. Dividend yield of 4.8% is pretty attractive.

property mngmnt/investment

Industrial properties. It is more cyclical and more tied to the business cycle. As business gets better, it will likely be able to raise rents. It has now pulled back to the 150-day moving average, which is a good place to buy it. Dividend yield of 4.8% is pretty attractive.

property mngmnt/investment
David Burrows

President & Chief Investment Strategist, Barometer Capital Ma...

PricePrice
$6.440
Owned Owned
No

COMMENT

He likes this company. Real estate has headwinds, but this company has a tailwind because it is industrial. Also, they are buying assets in the US which has extensive corridors with a population base where there would be some desired locations to own in the Midwest and in secondary cities. Yield is around 5%. They are pretty good at what they do. He would like to own this, but at the right price.

property mngmnt/investment

He likes this company. Real estate has headwinds, but this company has a tailwind because it is industrial. Also, they are buying assets in the US which has extensive corridors with a population base where there would be some desired locations to own in the Midwest and in secondary cities. Yield is around 5%. They are pretty good at what they do. He would like to own this, but at the right price.

property mngmnt/investment
Paul Gardner, CFA

Partner and Portfolio Manager, Avenue Investment Ma...

PricePrice
$6.480
Owned Owned
No

COMMENT

He likes the industrial REIT space. A wonderful way to play Amazon (AMZN-Q), which increasingly needs warehouses closer and closer to the customer. This REIT provides that kind of space. The recent weakness has been because of recent acquisitions and interest rate fears.

property mngmnt/investment

He likes the industrial REIT space. A wonderful way to play Amazon (AMZN-Q), which increasingly needs warehouses closer and closer to the customer. This REIT provides that kind of space. The recent weakness has been because of recent acquisitions and interest rate fears.

property mngmnt/investment
Lyle Stein

Sr. Portfolio & Managing Director, Vestcap Investment M...

PricePrice
$6.450
Owned Owned
Unknown

COMMENT

A sector that sold off a few years ago, as people were thinking that with less manufacturing there was less industry. Since then we have had a major change in how people shop. There is a lot of online shopping, and this company’s holdings have become hubs for a lot of storage for businesses. One of the leaders in this space, and probably one of the best names in the industrial space.

property mngmnt/investment

A sector that sold off a few years ago, as people were thinking that with less manufacturing there was less industry. Since then we have had a major change in how people shop. There is a lot of online shopping, and this company’s holdings have become hubs for a lot of storage for businesses. One of the leaders in this space, and probably one of the best names in the industrial space.

property mngmnt/investment
Lorne Zeiler

Portfolio Manager & Wealth Advisor, TriDelta Financial...

PricePrice
$6.560
Owned Owned
Unknown

HOLD

The trend that has been pushing names like this up, is the e-commerce trend. This is a fantastic company, a little pricey right now. It has done a great job of aligning itself with FedEx. There is going to be a point where that exhausts itself, which is when you can expect the price to pull back. However, there is no reason why you would want to sell a company that is doing so well and was such a good future going forward. It has brought its debt down and its earnings are very steady, and it could be very much a perpetual hold.

property mngmnt/investment

The trend that has been pushing names like this up, is the e-commerce trend. This is a fantastic company, a little pricey right now. It has done a great job of aligning itself with FedEx. There is going to be a point where that exhausts itself, which is when you can expect the price to pull back. However, there is no reason why you would want to sell a company that is doing so well and was such a good future going forward. It has brought its debt down and its earnings are very steady, and it could be very much a perpetual hold.

property mngmnt/investment
Derek Warren

Asst Vice President, Lincluden Investment...

PricePrice
$6.450
Owned Owned
Yes

BUY

Things have changed.  E-Commerce and pot have benefited them.  It has done extremely well.  He is interested in the name.  Management has done a good job of getting growth there.  Their biggest risk is that their biggest customer is a significant portion of their business.

property mngmnt/investment

Things have changed.  E-Commerce and pot have benefited them.  It has done extremely well.  He is interested in the name.  Management has done a good job of getting growth there.  Their biggest risk is that their biggest customer is a significant portion of their business.

property mngmnt/investment
Barry Schwartz

CIO & Portfolio Manager, Baskin Wealth Manage...

PricePrice
$6.330
Owned Owned
Yes

HOLD

He is a large shareholder.  He is continuing to hold it but is concerned about supply.  REITs have staggered debt maturities. 

property mngmnt/investment

He is a large shareholder.  He is continuing to hold it but is concerned about supply.  REITs have staggered debt maturities. 

property mngmnt/investment
Andy Nasr

VP & Investment Strategist, Sentry Investments...

PricePrice
$6.090
Owned Owned
Yes

DON'T BUY

They have had the ability to grow and this is why they issued units.  Industrial space is the hot commodity right now.  17 times price to AFFO so it is on the higher side. 

property mngmnt/investment

They have had the ability to grow and this is why they issued units.  Industrial space is the hot commodity right now.  17 times price to AFFO so it is on the higher side. 

property mngmnt/investment
Paul Gardner, CFA

Partner and Portfolio Manager, Avenue Investment Ma...

PricePrice
$6.040
Owned Owned
Unknown

PAST TOP PICK

(A Top Pick Dec 18/15. Up 42.72%.) One of the largest tenants is FedEx. Management has done an excellent job of diversifying themselves, even over the sub, subcategories within industrials. They have also recognized that it is important to reduce overall leverage.

property mngmnt/investment

(A Top Pick Dec 18/15. Up 42.72%.) One of the largest tenants is FedEx. Management has done an excellent job of diversifying themselves, even over the sub, subcategories within industrials. They have also recognized that it is important to reduce overall leverage.

property mngmnt/investment
Derek Warren

Asst Vice President, Lincluden Investment...

PricePrice
$5.780
Owned Owned
Yes

COMMENT

He really likes this. They have exposure both in Canada and the US. Recycling some capital and increasing their US exposure. Management has done a pretty decent job considering where they started with their IPO several years ago. Fairly well diversified.

property mngmnt/investment

He really likes this. They have exposure both in Canada and the US. Recycling some capital and increasing their US exposure. Management has done a pretty decent job considering where they started with their IPO several years ago. Fairly well diversified.

property mngmnt/investment
Andy Nasr

VP & Investment Strategist, Sentry Investments...

PricePrice
$5.690
Owned Owned
Yes

BUY

He likes the industrial sector.  In traditional retail you have the Amazon affect.  Industrial is the easiest to build.  As you see more and more business being done on line you should see this one benefitting.  They did a nice job of carving out a niche and should be able to deliver decent dividend growth.

property mngmnt/investment

He likes the industrial sector.  In traditional retail you have the Amazon affect.  Industrial is the easiest to build.  As you see more and more business being done on line you should see this one benefitting.  They did a nice job of carving out a niche and should be able to deliver decent dividend growth.

property mngmnt/investment
Andy Nasr

VP & Investment Strategist, Sentry Investments...

PricePrice
$5.320
Owned Owned
Yes

TOP PICK

A very high quality income. You are getting a good yield of 6.13%. They have US assets, so you are getting some US exposure. High quality industrial assets will continue to benefit from our US partners. Also, they have a lot of logistics type of tenants, such as FedEx. (Analysts’ price target is $5.91.)

property mngmnt/investment

A very high quality income. You are getting a good yield of 6.13%. They have US assets, so you are getting some US exposure. High quality industrial assets will continue to benefit from our US partners. Also, they have a lot of logistics type of tenants, such as FedEx. (Analysts’ price target is $5.91.)

property mngmnt/investment
Derek Warren

Asst Vice President, Lincluden Investment...

PricePrice
$5.090
Owned Owned
Yes

COMMENT

Has been a very successful REIT and the portfolio is pretty good quality, compared to others. What he likes about the industrial market in Canada is that it has been fairly disciplined across the board, and CAP rates have not compressed as much is the retail sector. Also, you are not seeing the overcapacity that you are seeing in office REITs. This is no longer a screaming buy.

property mngmnt/investment

Has been a very successful REIT and the portfolio is pretty good quality, compared to others. What he likes about the industrial market in Canada is that it has been fairly disciplined across the board, and CAP rates have not compressed as much is the retail sector. Also, you are not seeing the overcapacity that you are seeing in office REITs. This is no longer a screaming buy.

property mngmnt/investment
Steve Belisle

Senior Portfolio Manager & Managing Director, Manulife Asset Manag...

PricePrice
$5.760
Owned Owned
Unknown

COMMENT

This has popped recently and is outperforming the market, and is the best way to play e-commerce. He continues to like this.

property mngmnt/investment

This has popped recently and is outperforming the market, and is the best way to play e-commerce. He continues to like this.

property mngmnt/investment
Derek Warren

Asst Vice President, Lincluden Investment...

PricePrice
$5.620
Owned Owned
Yes

HOLD

(Market Call Minute.) He really likes the industrial markets. A long-term hold.

property mngmnt/investment

(Market Call Minute.) He really likes the industrial markets. A long-term hold.

property mngmnt/investment
Derek Warren

Asst Vice President, Lincluden Investment...

PricePrice
$5.160
Owned Owned
Yes

HOLD

This had a secondary offering last week and it was well taken. This should digest the move that it has had, and then break into new highs.

property mngmnt/investment

This had a secondary offering last week and it was well taken. This should digest the move that it has had, and then break into new highs.

property mngmnt/investment
Bill Carrigan

Technical Analyst, Getting Technical In...

PricePrice
$5.060
Owned Owned
Unknown

BUY

(Market Call Minute.) This has industrial exposure across Canada. Look for some weakness in Alberta, but that will be balanced off by Ontario strength.

property mngmnt/investment

(Market Call Minute.) This has industrial exposure across Canada. Look for some weakness in Alberta, but that will be balanced off by Ontario strength.

property mngmnt/investment
Derek Warren

Asst Vice President, Lincluden Investment...

PricePrice
$4.890
Owned Owned
Unknown

DON'T BUY

Continue to trade it.  He is not a trader, however.  The price they pay for assets has continually increased, but cash flows have not increased at the same rate so they are trading at more and more of a premium.  It is not a long term investment.  You can get a similar yield with less risk elsewhere.

property mngmnt/investment

Continue to trade it.  He is not a trader, however.  The price they pay for assets has continually increased, but cash flows have not increased at the same rate so they are trading at more and more of a premium.  It is not a long term investment.  You can get a similar yield with less risk elsewhere.

property mngmnt/investment
Kash Pashootan

Sr. VP & Portfolio Manager, First Avenue Advisor...

PricePrice
$4.990
Owned Owned
No

COMMENT

(Market Call Minute.) If you want to be invested in industrial real estate, this is one of the “go to” names in Canada. This is small and is going to be able to Buy and grow.

property mngmnt/investment

(Market Call Minute.) If you want to be invested in industrial real estate, this is one of the “go to” names in Canada. This is small and is going to be able to Buy and grow.

property mngmnt/investment
Steve DiGregorio

Portfolio Manager, Canoe Financial...

PricePrice
$4.820
Owned Owned
No

COMMENT

An industrial REIT, well diversified across Canada. Has some Western Canada exposure where, if you look at the in-place rents, they are about 5% higher than the market rent, so there is going to be a bit of a negative headwind there. That is somewhat offset by strength in eastern Canada. The 80% payout ratio indicates that as “same property NOI” (net operating income) growth kicks higher in the next couple of years, especially given a lower Cdn$, you could get some dividend growth and capital appreciation potential. Trades at about a 10% discount to NAV.

property mngmnt/investment

An industrial REIT, well diversified across Canada. Has some Western Canada exposure where, if you look at the in-place rents, they are about 5% higher than the market rent, so there is going to be a bit of a negative headwind there. That is somewhat offset by strength in eastern Canada. The 80% payout ratio indicates that as “same property NOI” (net operating income) growth kicks higher in the next couple of years, especially given a lower Cdn$, you could get some dividend growth and capital appreciation potential. Trades at about a 10% discount to NAV.

property mngmnt/investment
Andy Nasr

VP & Investment Strategist, Sentry Investments...

PricePrice
$4.660
Owned Owned
Yes

COMMENT

Likes the REITs and is starting to build back his income positions in REITs, utilities and pipelines. This is not one he follows or has bought, but his company has it is a sector outperform with a $5.25 target. They have good exposure to single tenant properties, but he is just a little cautious about their ability to execute their growth.

property mngmnt/investment

Likes the REITs and is starting to build back his income positions in REITs, utilities and pipelines. This is not one he follows or has bought, but his company has it is a sector outperform with a $5.25 target. They have good exposure to single tenant properties, but he is just a little cautious about their ability to execute their growth.

property mngmnt/investment
Jaime Carrasco

Director & Associate Portfolio Manager, Scotiabank, Global W...

PricePrice
$4.660
Owned Owned
No

COMMENT

He is a large shareholder. Trading at about 11% discount to NAV. A great name to hold, but his concern is the Western Canadian exposure. It looks like in-place rents are about 5% higher than market rents in Western Canada, and that is getting offset by some strength in Eastern Canada, so he feels that everything on balance is okay. If looking for a name that is a little bit cheaper in the industrial sector, you could look at Dream Industrial (DIR.UN-T), which is trading at about a 25% discount to NAV and also cheaper on other metrics. However, it is externally managed and does have a little more Western Canadian exposure, but that is fully reflected in the share price. He still holds Pure Industrial and thinks it is fine.

property mngmnt/investment

He is a large shareholder. Trading at about 11% discount to NAV. A great name to hold, but his concern is the Western Canadian exposure. It looks like in-place rents are about 5% higher than market rents in Western Canada, and that is getting offset by some strength in Eastern Canada, so he feels that everything on balance is okay. If looking for a name that is a little bit cheaper in the industrial sector, you could look at Dream Industrial (DIR.UN-T), which is trading at about a 25% discount to NAV and also cheaper on other metrics. However, it is externally managed and does have a little more Western Canadian exposure, but that is fully reflected in the share price. He still holds Pure Industrial and thinks it is fine.

property mngmnt/investment
Andy Nasr

VP & Investment Strategist, Sentry Investments...

PricePrice
$4.320
Owned Owned
Yes

COMMENT

He likes the industrial space within the REITs and the fact that this company was buying individual buildings 1, 2 or 3 at a time, largely from private investors. They were getting 18%-18.5% cap rates, which is very attractive. Got a new CEO who changed the style of the company of what they were buying, so he exited his position.

property mngmnt/investment

He likes the industrial space within the REITs and the fact that this company was buying individual buildings 1, 2 or 3 at a time, largely from private investors. They were getting 18%-18.5% cap rates, which is very attractive. Got a new CEO who changed the style of the company of what they were buying, so he exited his position.

property mngmnt/investment
Jerome Hass

Portfolio Manager, Lightwater Partners...

PricePrice
$4.400
Owned Owned
No

COMMENT

Industrial markets are a great yield play and a great way to receive income. The kind of companies that lease will benefit overall from a weak Cdn$, as many of these industries are exporting to the US. They like to own the FedEx distribution centres, the truckers, etc., and if you think e-commerce is putting pressure on shopping malls, this is a company to buy. There will be strain on their Alberta portfolio, but the Ontario portfolio more than outweighs that. Likes this a lot.

property mngmnt/investment

Industrial markets are a great yield play and a great way to receive income. The kind of companies that lease will benefit overall from a weak Cdn$, as many of these industries are exporting to the US. They like to own the FedEx distribution centres, the truckers, etc., and if you think e-commerce is putting pressure on shopping malls, this is a company to buy. There will be strain on their Alberta portfolio, but the Ontario portfolio more than outweighs that. Likes this a lot.

property mngmnt/investment
Derek Warren

Asst Vice President, Lincluden Investment...

PricePrice
$4.440
Owned Owned
Yes

TOP PICK

You are getting a 7.34% yield to be buying a very stable portfolio of industrial properties. It has some Alberta exposure, but the vast majority of properties are in Ontario. A neat angle is that they are doing the developments for many FedEx hubs. If you are concerned about e-commerce and its effect on the retail market, this is a way to get around it. A very cheap stock.

property mngmnt/investment

You are getting a 7.34% yield to be buying a very stable portfolio of industrial properties. It has some Alberta exposure, but the vast majority of properties are in Ontario. A neat angle is that they are doing the developments for many FedEx hubs. If you are concerned about e-commerce and its effect on the retail market, this is a way to get around it. A very cheap stock.

property mngmnt/investment
Derek Warren

Asst Vice President, Lincluden Investment...

PricePrice
$4.320
Owned Owned
Yes

COMMENT

They have some US assets lined up with FedEx distribution centers.  They have Calgary exposure and there were issues there.  They had to give concessions there, but they have an Ontario portfolio that makes up for it.

property mngmnt/investment

They have some US assets lined up with FedEx distribution centers.  They have Calgary exposure and there were issues there.  They had to give concessions there, but they have an Ontario portfolio that makes up for it.

property mngmnt/investment
Derek Warren

Asst Vice President, Lincluden Investment...

PricePrice
$4.340
Owned Owned
Unknown

COMMENT

His company has this as a Sector Perform with a $5.25 target. He feels quite comfortable with this as an income payer. He wonders though if pension funds have to sell, will this be selling. A good income play and he would recommend it. Dividend yield of 7%.

property mngmnt/investment

His company has this as a Sector Perform with a $5.25 target. He feels quite comfortable with this as an income payer. He wonders though if pension funds have to sell, will this be selling. A good income play and he would recommend it. Dividend yield of 7%.

property mngmnt/investment
Jaime Carrasco

Director & Associate Portfolio Manager, Scotiabank, Global W...

PricePrice
$4.430
Owned Owned
Unknown

PAST TOP PICK

(A Top Pick Sept 5/14. Up 2.9%.) This is the kind of blue-chip name he would go to for general exposure in the industrial markets. Because of that, it hasn’t collapsed as much. Has exposure to small bay, owner operator type of things and are now expanding into FedEx owned distribution centres. Very large developments. Still likes.

property mngmnt/investment

(A Top Pick Sept 5/14. Up 2.9%.) This is the kind of blue-chip name he would go to for general exposure in the industrial markets. Because of that, it hasn’t collapsed as much. Has exposure to small bay, owner operator type of things and are now expanding into FedEx owned distribution centres. Very large developments. Still likes.

property mngmnt/investment
Derek Warren

Asst Vice President, Lincluden Investment...

PricePrice
$4.430
Owned Owned
Yes

HOLD

This has held up relatively well compared to the broader REIT Index. It has a valuation that is trading at a premium relative to the peer group. The balance sheet is fine. This is more of growth by acquisition, however it is internally managed. You should see some upside with occupancy gains and some rent growth materializing in 2016. However, the upside will be somewhat limited given that the broader real estate sector has sold off and there are better valuations in other parts of the market.

property mngmnt/investment

This has held up relatively well compared to the broader REIT Index. It has a valuation that is trading at a premium relative to the peer group. The balance sheet is fine. This is more of growth by acquisition, however it is internally managed. You should see some upside with occupancy gains and some rent growth materializing in 2016. However, the upside will be somewhat limited given that the broader real estate sector has sold off and there are better valuations in other parts of the market.

property mngmnt/investment
Andy Nasr

VP & Investment Strategist, Sentry Investments...

PricePrice
$4.500
Owned Owned
Yes

PAST TOP PICK

(Top Pick Jul 15/14, Up 4.66%) He has liked the industrial market for some time.  They have internalized management and have a capable management team.  It is still a good name.

property mngmnt/investment

(Top Pick Jul 15/14, Up 4.66%) He has liked the industrial market for some time.  They have internalized management and have a capable management team.  It is still a good name.

property mngmnt/investment
Derek Warren

Asst Vice President, Lincluden Investment...

PricePrice
$4.580
Owned Owned
Yes

PAST TOP PICK

(Top Pick Jun 13/14, Up 8.70%) This one is doing what he wants it to do.  He expected a slightly higher return and there seems to be some pressure across industrial stocks in general. He thinks the market will eventually catch on to this one.

property mngmnt/investment

(Top Pick Jun 13/14, Up 8.70%) This one is doing what he wants it to do.  He expected a slightly higher return and there seems to be some pressure across industrial stocks in general. He thinks the market will eventually catch on to this one.

property mngmnt/investment
Derek Warren

Asst Vice President, Lincluden Investment...

PricePrice
$4.780
Owned Owned
Yes

PAST TOP PICK

(A Top Pick June 13/14. Up 10.48%.) (Derek was not on June 17/14, so I’m just using BNN’s figures. Bill.) They are expanding in one of the largest industrial developments in Canada for FedEx (FDX-N) as their core tenant. Their payout is very stable and they put up good earnings.

property mngmnt/investment

(A Top Pick June 13/14. Up 10.48%.) (Derek was not on June 17/14, so I’m just using BNN’s figures. Bill.) They are expanding in one of the largest industrial developments in Canada for FedEx (FDX-N) as their core tenant. Their payout is very stable and they put up good earnings.

property mngmnt/investment
Derek Warren

Asst Vice President, Lincluden Investment...

PricePrice
$4.910
Owned Owned
Yes

HOLD

The industrial market is doing very well. We are seeing rent growth in the GTA, its core markets. He continues to like the name. Not cheap anymore, but he continues to like it as a Hold.

property mngmnt/investment

The industrial market is doing very well. We are seeing rent growth in the GTA, its core markets. He continues to like the name. Not cheap anymore, but he continues to like it as a Hold.

property mngmnt/investment
Derek Warren

Asst Vice President, Lincluden Investment...

PricePrice
$5.030
Owned Owned
Unknown

DON'T BUY

This is a play on industrial space, which at some point in time can be great to own, but at other times not. However, this is trying to focus and grow more into the US. Good managers. Distribution is safe as they only pay out around 70%-80% of their income coming in. At the late cycle that we are in, he would probably avoid this.

property mngmnt/investment

This is a play on industrial space, which at some point in time can be great to own, but at other times not. However, this is trying to focus and grow more into the US. Good managers. Distribution is safe as they only pay out around 70%-80% of their income coming in. At the late cycle that we are in, he would probably avoid this.

property mngmnt/investment
Paul Gardner, CFA

Partner and Portfolio Manager, Avenue Investment Ma...

PricePrice
$5.050
Owned Owned
No

COMMENT

Management team brought down the leverage by about 500 basis points, but have maintained free cash flow per share. Doing that in such a short period of time is very impressive. They just got added to the index which will create demand for shares in the short term. The majority of their assets are in Ontario, and he thinks they will benefit from demand for industrial real estate.

property mngmnt/investment

Management team brought down the leverage by about 500 basis points, but have maintained free cash flow per share. Doing that in such a short period of time is very impressive. They just got added to the index which will create demand for shares in the short term. The majority of their assets are in Ontario, and he thinks they will benefit from demand for industrial real estate.

property mngmnt/investment
Michael Missaghie

VP & Sr. Portfolio Manager, Sentry Investments...

PricePrice
$5.030
Owned Owned
Yes

COMMENT

One of his favourites. Last year didn’t do so well, but year-to-date has done very, very well. Industrial markets are fine. They are in very good condition even in Calgary and Edmonton, but the other dynamic is that they are right on the border of whether they can go into the TSX or not. That would create a lot of volume and a lot of interest in the stock.

property mngmnt/investment

One of his favourites. Last year didn’t do so well, but year-to-date has done very, very well. Industrial markets are fine. They are in very good condition even in Calgary and Edmonton, but the other dynamic is that they are right on the border of whether they can go into the TSX or not. That would create a lot of volume and a lot of interest in the stock.

property mngmnt/investment
Derek Warren

Asst Vice President, Lincluden Investment...

PricePrice
$5.110
Owned Owned
Unknown

COMMENT

Likes the industrial sector in general. There has been very little supply growth. Has averaged less than 1.5% in the last few years, so you don’t have to really worry about that excess supply. Also, the lower Cdn$ should benefit the manufacturing sector in eastern Canada, which should create more industrial demand. Broadly speaking, if you look at the industrial subsector within real estate, occupancy has been in the mid-90s. If you see occupancy get pushed up above the mid-90s, then you should really see significant rent growth, and accompanying this will be cash flow growth, and hopefully a dividend bump. Balance sheet is in good shape. This tends to be more of a growth by acquisition REIT, so down the road you can see some some equity issue to gobble up some more assets.

property mngmnt/investment

Likes the industrial sector in general. There has been very little supply growth. Has averaged less than 1.5% in the last few years, so you don’t have to really worry about that excess supply. Also, the lower Cdn$ should benefit the manufacturing sector in eastern Canada, which should create more industrial demand. Broadly speaking, if you look at the industrial subsector within real estate, occupancy has been in the mid-90s. If you see occupancy get pushed up above the mid-90s, then you should really see significant rent growth, and accompanying this will be cash flow growth, and hopefully a dividend bump. Balance sheet is in good shape. This tends to be more of a growth by acquisition REIT, so down the road you can see some some equity issue to gobble up some more assets.

property mngmnt/investment
Andy Nasr

VP & Investment Strategist, Sentry Investments...

PricePrice
$4.590
Owned Owned
Yes

PAST TOP PICK

(Top Pick Dec 17/13, Up 5.46%) His call to go industrial did not work out as well as he thought it would.

property mngmnt/investment

(Top Pick Dec 17/13, Up 5.46%) His call to go industrial did not work out as well as he thought it would.

property mngmnt/investment
Derek Warren

Asst Vice President, Lincluden Investment...

PricePrice
$4.410
Owned Owned
Yes

DON'T BUY

It is very unlikely that you will see a dividend increase in this anytime soon. The payout ratio is pretty high. Thinks there is some Canadian Western exposure here, and he would stay away from it. 7.2% dividend yield.

property mngmnt/investment

It is very unlikely that you will see a dividend increase in this anytime soon. The payout ratio is pretty high. Thinks there is some Canadian Western exposure here, and he would stay away from it. 7.2% dividend yield.

property mngmnt/investment
James Hodgins

Chief Investment Officer, Curvature Hedge Stra...

PricePrice
$4.320
Owned Owned
No

PAST TOP PICK

(A Top Pick Nov 13/13. Up 4.88%.) Still good value. Sees this as still being cheap. The value is there. On a US
theme, a stronger US means more shipping to the US, meaning more logistics, which all implies using the industrial properties like this company has.

property mngmnt/investment

(A Top Pick Nov 13/13. Up 4.88%.) Still good value. Sees this as still being cheap. The value is there. On a US
theme, a stronger US means more shipping to the US, meaning more logistics, which all implies using the industrial properties like this company has.

property mngmnt/investment
Derek Warren

Asst Vice President, Lincluden Investment...

PricePrice
$4.430
Owned Owned
Yes

BUY

He is one of the largest shareholders in this one.  You can’t go wrong

property mngmnt/investment

He is one of the largest shareholders in this one.  You can’t go wrong

property mngmnt/investment
Andy Nasr

VP & Investment Strategist, Sentry Investments...

PricePrice
$4.400
Owned Owned
Yes

BUY

Likes it because of good quality and industrial properties.  There is good demand and vacancy is going down. 

property mngmnt/investment

Likes it because of good quality and industrial properties.  There is good demand and vacancy is going down. 

property mngmnt/investment
Michele Robitaille

Portfolio Manager, Guardian Capital...

PricePrice
$4.410
Owned Owned
Yes

DON'T BUY

Last year we had rising rates and real estate underperformed.  He does not think rates will go up much and not that fast.  The board is made up of people on other boards and that to him is a conflict.  He would prefer the team do only one thing and do it well.

property mngmnt/investment

Last year we had rising rates and real estate underperformed.  He does not think rates will go up much and not that fast.  The board is made up of people on other boards and that to him is a conflict.  He would prefer the team do only one thing and do it well.

property mngmnt/investment
Paul Gardner, CFA

Partner and Portfolio Manager, Avenue Investment Ma...

PricePrice
$4.550
Owned Owned
Unknown

TOP PICK

It just looks even cheaper now as the fundamentals look very strong.  FedEx centers across the US.  Does not think there is a lot of risk of diluting through share issue.

property mngmnt/investment

It just looks even cheaper now as the fundamentals look very strong.  FedEx centers across the US.  Does not think there is a lot of risk of diluting through share issue.

property mngmnt/investment
Derek Warren

Asst Vice President, Lincluden Investment...

PricePrice
$4.600
Owned Owned
Yes

HOLD

Likes the industrial asset class. This happens to be a REIT that has grown hand over fist through acquisitions. You are getting a very good yield. Trading at a modest value to NAV. Payout ratio is hovering around 85%. Expects there will be more growth through acquisition, but more importantly, some organic growth, especially as industrial activity picks up in Eastern Canada. The decline in the Cdn$ should help manufacturing. As a result of that, we should start to see industrial rents increase. They have remained relatively lacklustre for the past few years. The good news is we have seen very little new supply. Supply growth in the industrial sector has only averaged about 1% in the last 4 years, which means that landlords should have a lot of pricing power once the economic momentum terms.

property mngmnt/investment

Likes the industrial asset class. This happens to be a REIT that has grown hand over fist through acquisitions. You are getting a very good yield. Trading at a modest value to NAV. Payout ratio is hovering around 85%. Expects there will be more growth through acquisition, but more importantly, some organic growth, especially as industrial activity picks up in Eastern Canada. The decline in the Cdn$ should help manufacturing. As a result of that, we should start to see industrial rents increase. They have remained relatively lacklustre for the past few years. The good news is we have seen very little new supply. Supply growth in the industrial sector has only averaged about 1% in the last 4 years, which means that landlords should have a lot of pricing power once the economic momentum terms.

property mngmnt/investment
Andy Nasr

VP & Investment Strategist, Sentry Investments...

PricePrice
$4.560
Owned Owned
Yes

WEAK BUY

They have changed their strategy over the last couple of years.  Now they are making large acquisitions of portfolios and you get the good, the bad and the ugly.

property mngmnt/investment

They have changed their strategy over the last couple of years.  Now they are making large acquisitions of portfolios and you get the good, the bad and the ugly.

property mngmnt/investment
Jerome Hass

Portfolio Manager, Lightwater Partners...

PricePrice
$4.630
Owned Owned
Unknown

TOP PICK

Industrial.  Mostly Ontario and Alberta properties with a cap rate of 6.75.  The stock is very inexpensive.  Their properties have a courier that handles all the Amazon shipments.

property mngmnt/investment

Industrial.  Mostly Ontario and Alberta properties with a cap rate of 6.75.  The stock is very inexpensive.  Their properties have a courier that handles all the Amazon shipments.

property mngmnt/investment
Derek Warren

Asst Vice President, Lincluden Investment...

PricePrice
$4.630
Owned Owned
Yes

TOP PICK

Largest industrial REIT in Canada.  Assets across the country.  Recently purchased a portfolio in the US that is leased to FedEx.  He has a strong confidence in management.  They will grow free cash flow per share.  Trading at a 3-4% discount to NAV.

property mngmnt/investment

Largest industrial REIT in Canada.  Assets across the country.  Recently purchased a portfolio in the US that is leased to FedEx.  He has a strong confidence in management.  They will grow free cash flow per share.  Trading at a 3-4% discount to NAV.

property mngmnt/investment
Michael Missaghie

VP & Sr. Portfolio Manager, Sentry Investments...

PricePrice
$4.620
Owned Owned
Yes

COMMENT

Likes the REIT sector. He thinks we will see a decline in the REIT sector followed by a rebound. Likes this one because there is more on the industrial side than the commercial side. You have to look at geographical locations of the REITs, and he would rather have the ones that are sitting in Western Canada. 6.8% yield.

property mngmnt/investment

Likes the REIT sector. He thinks we will see a decline in the REIT sector followed by a rebound. Likes this one because there is more on the industrial side than the commercial side. You have to look at geographical locations of the REITs, and he would rather have the ones that are sitting in Western Canada. 6.8% yield.

property mngmnt/investment
Jaime Carrasco

Director & Associate Portfolio Manager, Scotiabank, Global W...

PricePrice
$4.560
Owned Owned
Yes

TOP PICK

Portfolio is of higher quality, very good lease terms and very good relationships. Yield is a little bit low, but don’t be fooled by that. It’s lower because it is a stronger company, and has been priced better. With the little bit of recent price weakness it is an interesting opportunity. 6.7% yield.

property mngmnt/investment

Portfolio is of higher quality, very good lease terms and very good relationships. Yield is a little bit low, but don’t be fooled by that. It’s lower because it is a stronger company, and has been priced better. With the little bit of recent price weakness it is an interesting opportunity. 6.7% yield.

property mngmnt/investment
Derek Warren

Asst Vice President, Lincluden Investment...

PricePrice
$4.700
Owned Owned
Yes

HOLD

Likes the industrial space. It is one of the property classes that have the best fundamentals. There is still incremental demand going into that space so she expects to see occupancy going up as well as rental rates.

property mngmnt/investment

Likes the industrial space. It is one of the property classes that have the best fundamentals. There is still incremental demand going into that space so she expects to see occupancy going up as well as rental rates.

property mngmnt/investment
Michele Robitaille

Portfolio Manager, Guardian Capital...

PricePrice
$4.780
Owned Owned
Unknown

COMMENT

An industrial REIT. The great thing about this is that their field ratio is really conservative, and doesn’t field more than 80% of its AFFO. It is very good at transacting and acquiring and getting bigger and bigger. His concern is that he doesn’t know if they add incremental value to their assets that they purchase, which should be done in the early cycles. Also, in this late stage, he does not want to own industrial, which tends to be a very cyclical market. Would prefer apartment REITs.

property mngmnt/investment

An industrial REIT. The great thing about this is that their field ratio is really conservative, and doesn’t field more than 80% of its AFFO. It is very good at transacting and acquiring and getting bigger and bigger. His concern is that he doesn’t know if they add incremental value to their assets that they purchase, which should be done in the early cycles. Also, in this late stage, he does not want to own industrial, which tends to be a very cyclical market. Would prefer apartment REITs.

property mngmnt/investment
Paul Gardner, CFA

Partner and Portfolio Manager, Avenue Investment Ma...

PricePrice
$4.850
Owned Owned
Unknown

BUY

Industrial Market.  He is keen.  2014 is the year for industrial.  Rents are just starting to go up in the GTA.  This is a good opportunity.

property mngmnt/investment

Industrial Market.  He is keen.  2014 is the year for industrial.  Rents are just starting to go up in the GTA.  This is a good opportunity.

property mngmnt/investment
Derek Warren

Asst Vice President, Lincluden Investment...

PricePrice
$4.910
Owned Owned
Unknown

PAST TOP PICK

(A Top Pick April 23/13. Up 0.7%.) The whole sector has gone through a rough patch because of fears of interest rates backing up. Also, 3 senior management have left.

property mngmnt/investment

(A Top Pick April 23/13. Up 0.7%.) The whole sector has gone through a rough patch because of fears of interest rates backing up. Also, 3 senior management have left.

property mngmnt/investment
Jerome Hass

Portfolio Manager, Lightwater Partners...

PricePrice
$4.820
Owned Owned
Yes

BUY

(Market Call Minute) Industrial building should see an uptick.

property mngmnt/investment

(Market Call Minute) Industrial building should see an uptick.

property mngmnt/investment
Andy Nasr

VP & Investment Strategist, Sentry Investments...

PricePrice
$4.710
Owned Owned
Unknown

COMMENT

The industrial sector in Canada from a REIT perspective has grown dramatically over the last 3-4 years. From his perspective, this is the name you would want to own to get industrial exposure. This has an internalized management team that has proven that over time they have been able to allocate capital effectively so as to grow free cash flow over time. Has a sustainable distribution payout ratio and high quality assets. A big proportion of their assets are exposed to markets like BC where it is difficult to purchase industrial. Also, have exposure to Ontario. Feels the low Cdn$ is going to help manufacturing, which will flow into industrial assets.

property mngmnt/investment

The industrial sector in Canada from a REIT perspective has grown dramatically over the last 3-4 years. From his perspective, this is the name you would want to own to get industrial exposure. This has an internalized management team that has proven that over time they have been able to allocate capital effectively so as to grow free cash flow over time. Has a sustainable distribution payout ratio and high quality assets. A big proportion of their assets are exposed to markets like BC where it is difficult to purchase industrial. Also, have exposure to Ontario. Feels the low Cdn$ is going to help manufacturing, which will flow into industrial assets.

property mngmnt/investment
Michael Missaghie

VP & Sr. Portfolio Manager, Sentry Investments...

PricePrice
$4.770
Owned Owned
Unknown

BUY

(Market Call Minute) There is going to be consolidation in the industrial real estate space.  It is one to own.

property mngmnt/investment

(Market Call Minute) There is going to be consolidation in the industrial real estate space.  It is one to own.

property mngmnt/investment
Ben Cheng

President and Chief Investment Officer, Aston Hill Financial...

PricePrice
$4.770
Owned Owned
No

TOP PICK

A Core position for him.  Very excited about the industrial market here in Canada.  These are the first businesses that will benefit.  Pure play connected to economic growth with very safe yield of 7% and a couple of percent in growth going forward.

property mngmnt/investment

A Core position for him.  Very excited about the industrial market here in Canada.  These are the first businesses that will benefit.  Pure play connected to economic growth with very safe yield of 7% and a couple of percent in growth going forward.

property mngmnt/investment
Derek Warren

Asst Vice President, Lincluden Investment...

PricePrice
$4.730
Owned Owned
Yes

TOP PICK

This is an income play. He is a big fan of the industrial market right now. Has seen a very large trend going on. Basically the Canadian industrial market is linked most directly to the US economy. US economy is improving at the same time that our dollar is weakening. So you have enough strength for the oil markets in Western Canada. Yet the weaker Cdn$ is actually helping bring back manufacturing into Ontario and Québec. This gives the opportunity for rent growth.

property mngmnt/investment

This is an income play. He is a big fan of the industrial market right now. Has seen a very large trend going on. Basically the Canadian industrial market is linked most directly to the US economy. US economy is improving at the same time that our dollar is weakening. So you have enough strength for the oil markets in Western Canada. Yet the weaker Cdn$ is actually helping bring back manufacturing into Ontario and Québec. This gives the opportunity for rent growth.

property mngmnt/investment
Derek Warren

Asst Vice President, Lincluden Investment...

PricePrice
$4.490
Owned Owned
Yes

TOP PICK

A value play and an income play.  The biggest spread between real property and REITs.  7.09% yield.  Up 1% since last year. 

property mngmnt/investment

A value play and an income play.  The biggest spread between real property and REITs.  7.09% yield.  Up 1% since last year. 

property mngmnt/investment
Derek Warren

Asst Vice President, Lincluden Investment...

PricePrice
$4.440
Owned Owned
Yes

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