Granite REIT (GRT.UN-T)

He likes the industrial space. GRT is positioned well between the US, Europe and Canada, so they can grow anywhere there. Likes management.

Have seen a recovery in shares in last few weeks, as bond proxies usually go up when interest rates go down. Expectation is for multiple rate cuts in Canada. That will improve balance sheet, but doesn't improve the business on a dime. Still getting good uplifts on new rental agreements signed at higher prices.

In NA, we're struggling with an over-supply of industrial real estate. Have to work through it. One of the best-managed REITs in Canada. Likes the industrial sector, not going anywhere anytime soon. But you have to have confidence that interest rates are going to come down materially from here.

Industrial was a very hot space, but now we're over-supplied. Fundamentals of the real estate industry not good right now. One of the best-managed REITs, discount to NAV, potential takeout candidate. Cheap valuation, but you need patience.

Will continue to own shares. Expecting recovery in shares. Industrial real estate (warehouses etc.) performing well. Expecting further growth in sector. Geographically is diverse across Canada. If/when interest rates stabilize - expecting return to higher profits. 

It's an e-commerce play. They hold a lot of warehouses. It once held only Magna asses, but that has declined a lot. Likes management. Half of assets are in the US, with exposure to Europe. They can deploy capital to any of these markets and act nimbly to react to market changes. Has the best balance sheet among peers

Doesn't like REITs now for poor returns, but does like Granite for its strong balance sheet, management, conservative payout ratio and are in the right sector, industrial which will pick up. Good track record of raising their dividend and a likely take-out candidate. If interest rates decline, the REITs will benefit. But it's not a business model for growth.

Largest industrial REIT listed in Canada. Diversified. 30% leased to Magna, mostly in Europe and Austria. Well run, good properties. Stuck in a range, mainly because uncertain economy has slowed down approvals on large-space leases. Expects higher occupancy in second half of 2024. 10-15% discount to NAV, yield of over 4%.

Believes opportunity for catch up trade. Good time to buy at current price. Would recommend investing. Pause in interest rate hikes, good for business. 

Successfully diversifying away from reliance on MGA. Solid management, executes well throughout the cycle. Concerns about more supply from new construction. Rent growth muted. Great option, but he owns DIR.UN instead.

Is selling at 75% of the NAV of the real estate. Also debt is 30% of its NAV, half of its peers. They can buy new buildings. They're in industrial real estate which remains in high demand.

Prefers this one. Better investment than DIR.UN. Steadier assets. Backed more by management. Only weakness is that US properties are suffering a bit. 

DIR.UN has good numbers, but issued equity in September, instead of selling assets, to get leverage down. Motivated by externally managed contract remuneration based on assets under management. Stock fell. Can't support management on any level. Supply's coming on, so the story's getting tired.

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. 

Holds a nice, diverse portfolio of industrial real estate, not office buildings or malls. Pays a good yield. Is less levered than other REITs, so it has a lot of dry powder to buy companies and less effected by higher interest rates. Trades far lower than its NAV, maybe 80%.

Will continue to hold.
Solid dividend that is dependable.
Expecting a $85 share price in 2024.
Excellent business.

Large selloff in share price given rise in interest rates.
Industrial real estate not as strong as Covid-19.
Not many barriers to entry within industrial real estate. 
eCommerce growth will help demand for storage. 
Current share price a "hold".