Morguard North American REIT

MRG.UN-T

Analysis and Opinions about MRG.UN-T

Signal
Opinion
Expert
COMMENT
COMMENT
March 15, 2017

A vehicle for holding more stable properties. More of a yield play than Morguard Corp. He owns both. Over the long-term, Morguard Corp is the more attractive, because it is where fees accrue to, and also retains more capital instead of paying the bigger dividend. Because the shares of Morguard Corp trade at a meaningful discount to its fair value, they continue to buy back stock from time to time, which further accretes value per share.

A vehicle for holding more stable properties. More of a yield play than Morguard Corp. He owns both. Over the long-term, Morguard Corp is the more attractive, because it is where fees accrue to, and also retains more capital instead of paying the bigger dividend. Because the shares of Morguard Corp trade at a meaningful discount to its fair value, they continue to buy back stock from time to time, which further accretes value per share.

Stephen Groff
Principal & Portfolio Manager, Cambridge Global Asset Management
Price
$14.360
Owned
Yes
COMMENT
COMMENT
November 23, 2016

These are apartments. In the real estate sector, the apartment sector tends to have the shortest lease term and tends to be the most defensive asset class amongst all the real estate subsectors. He likes the sector in general, but doesn’t own this one. His big knock on US apartments is excess supply. Thinks this will peak in 2017 and gradually moderate, and then you should see fundamentals improve, especially given the potential uptick in consumer incomes on the back of a tax cut in stronger employment. Payout ratio is relatively good at about 70%. Dividend yield of just under 5%.

These are apartments. In the real estate sector, the apartment sector tends to have the shortest lease term and tends to be the most defensive asset class amongst all the real estate subsectors. He likes the sector in general, but doesn’t own this one. His big knock on US apartments is excess supply. Thinks this will peak in 2017 and gradually moderate, and then you should see fundamentals improve, especially given the potential uptick in consumer incomes on the back of a tax cut in stronger employment. Payout ratio is relatively good at about 70%. Dividend yield of just under 5%.

Andy Nasr
VP & Investment Strategist, Sentry Investments
Price
$13.220
Owned
No
DON'T BUY
DON'T BUY
July 28, 2016

(Market Call Minute) He sees some value in apartment REITs in the US that are listed in the US.

(Market Call Minute) He sees some value in apartment REITs in the US that are listed in the US.

Andy Nasr
VP & Investment Strategist, Sentry Investments
Price
$13.060
Owned
No
BUY
BUY
December 3, 2015

The fundamentals in this space are good. Hold on to it. Rental rates have reached a point where it is very economic for new builds to occur. M&A will be factor in this industry.

The fundamentals in this space are good. Hold on to it. Rental rates have reached a point where it is very economic for new builds to occur. M&A will be factor in this industry.

Ben Cheng
President and Chief Investment Officer, Aston Hill Financial Ltd.
Price
$10.840
Owned
Unknown
COMMENT
COMMENT
March 18, 2015

They own apartments both in Canada and the US. This is a classic case of good real estate trading at a wide discount to its NAV in apartments. Current NAV is $14-$15. Trading at a large discount because it has a very large controlling shareholder (Morguard Corp) as well as having higher leverage than many of its peers. Also, as a small-cap REIT, most investors are going to wonder how they are going to grow.

They own apartments both in Canada and the US. This is a classic case of good real estate trading at a wide discount to its NAV in apartments. Current NAV is $14-$15. Trading at a large discount because it has a very large controlling shareholder (Morguard Corp) as well as having higher leverage than many of its peers. Also, as a small-cap REIT, most investors are going to wonder how they are going to grow.

Michael Missaghie
VP & Sr. Portfolio Manager, Sentry Investments
Price
$10.460
Owned
No
PAST TOP PICK
PAST TOP PICK
June 30, 2014

(A Top Pick March 25/13. Up 1.64%.) Has been a real disappointment. Well-managed company. A little bit too much debt. Sold his position at the end of 2013 for a tax loss. Have good growth prospects in North American residential rental properties.

(A Top Pick March 25/13. Up 1.64%.) Has been a real disappointment. Well-managed company. A little bit too much debt. Sold his position at the end of 2013 for a tax loss. Have good growth prospects in North American residential rental properties.

John O'Connell, CFA
Chairman and CEO, Davis Rea
Price
$10.470
Owned
No
PAST TOP PICK
PAST TOP PICK
June 2, 2014

(A Top Pick March 25/13. Up 2.8%.) The whole REIT space has been a poor performer and is really a bellwether warning about buying stocks. He wanted to take some losses so he sold his holdings.

(A Top Pick March 25/13. Up 2.8%.) The whole REIT space has been a poor performer and is really a bellwether warning about buying stocks. He wanted to take some losses so he sold his holdings.

John O'Connell, CFA
Chairman and CEO, Davis Rea
Price
$10.640
Owned
No
N/A
N/A
April 29, 2014

He works for them. The apartment sector in general is very safe. It is his largest personal holding.

He works for them. The apartment sector in general is very safe. It is his largest personal holding.

Derek Warren
Asst Vice President, Lincluden Investment Mgmnt
Price
$10.390
Owned
Yes
PAST TOP PICK
PAST TOP PICK
April 14, 2014

(Top Pick Mar 25/13, Down 7.18%) It was the worst time to pick a REIT. This was one of those disappointments. Thinks they are doing all the right things, but it is not big enough for the dealers to pick up coverage on it. 6.25% While you wait for something to happen.

(Top Pick Mar 25/13, Down 7.18%) It was the worst time to pick a REIT. This was one of those disappointments. Thinks they are doing all the right things, but it is not big enough for the dealers to pick up coverage on it. 6.25% While you wait for something to happen.

John O'Connell, CFA
Chairman and CEO, Davis Rea
Price
$9.740
Owned
Yes
PAST TOP PICK
PAST TOP PICK
April 7, 2014

(Top Pick May 13/13, Down 9.79%) Story has not changed. New business is moving into US. Likes this sector in the US. Rental market is strong. Any market correction would see money go into REITs where shareholders get rewarded with income.

(Top Pick May 13/13, Down 9.79%) Story has not changed. New business is moving into US. Likes this sector in the US. Rental market is strong. Any market correction would see money go into REITs where shareholders get rewarded with income.

Zachary Curry
Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd.
Price
$9.650
Owned
Yes
PAST TOP PICK
PAST TOP PICK
March 12, 2014

(A Top Pick March 26/13. Down 6.83%.) Had gone below $9 and now that it has come back to this point, he has been exiting the name. Not fully out of it yet but will be in the next couple of weeks.

(A Top Pick March 26/13. Down 6.83%.) Had gone below $9 and now that it has come back to this point, he has been exiting the name. Not fully out of it yet but will be in the next couple of weeks.

Bruce Campbell (1)
President, Campbell and Lee InvMngmnt
Price
$9.820
Owned
Yes
COMMENT
COMMENT
November 19, 2013

Has owned this for a long time and he likes the name. Likes that they have gone into the US and are focusing on the southern states where the growth is. However, REITs in general, took a beating in early summer when the tapering talk heated up. Pays a very nice dividend. They need to plow future money into the US, especially given the Canadian housing cycle. Rental markets in the US are trending higher. If tapering talks start again, he would be looking to Sell down along with all the REITs.

Has owned this for a long time and he likes the name. Likes that they have gone into the US and are focusing on the southern states where the growth is. However, REITs in general, took a beating in early summer when the tapering talk heated up. Pays a very nice dividend. They need to plow future money into the US, especially given the Canadian housing cycle. Rental markets in the US are trending higher. If tapering talks start again, he would be looking to Sell down along with all the REITs.

Zachary Curry
Chief Operating Officer & Portfolio Manager, Davis-Rea Ltd.
Price
$9.880
Owned
Yes
HOLD
HOLD
November 14, 2013

Didn’t participate in the IPO as he was worried about the multi residential sector and the valuation for this company was a little bit rich. Now it represents pretty compelling value. There is no risk to the dividend. With shorter duration leases in apartments, you should get a nice rental uplift. One thing to watch out for longer-term is that home ownership in the US is at the lowest level, it has been at since 1995. A lot of people, since 1997, had no choice but to rent, which has driven up rents substantially. This means that at some point rent growth is going to slow, but it will be gradual.

Didn’t participate in the IPO as he was worried about the multi residential sector and the valuation for this company was a little bit rich. Now it represents pretty compelling value. There is no risk to the dividend. With shorter duration leases in apartments, you should get a nice rental uplift. One thing to watch out for longer-term is that home ownership in the US is at the lowest level, it has been at since 1995. A lot of people, since 1997, had no choice but to rent, which has driven up rents substantially. This means that at some point rent growth is going to slow, but it will be gradual.

Andy Nasr
VP & Investment Strategist, Sentry Investments
Price
$9.760
Owned
Unknown
HOLD
HOLD
November 6, 2013

High quality company and thinks the dividends are safe. Would prefer an industrial, as opposed to a commercial REIT such as. Granite REIT (GRT.UN-T), which probably has more room for growth in the distributions. Ultimately though, these REITs are good investments for income.

High quality company and thinks the dividends are safe. Would prefer an industrial, as opposed to a commercial REIT such as. Granite REIT (GRT.UN-T), which probably has more room for growth in the distributions. Ultimately though, these REITs are good investments for income.

David Burrows
President & Chief Investment Strategist, Barometer Capital Management
Price
$10.130
Owned
Unknown
COMMENT
COMMENT
October 31, 2013

He favours this REIT. Doesn’t think it is going to cause anyone to jump out of their coffin. You might be fairly bored with it, but it is safe. He immensely favours Morguard (MRC-T) itself.

He favours this REIT. Doesn’t think it is going to cause anyone to jump out of their coffin. You might be fairly bored with it, but it is safe. He immensely favours Morguard (MRC-T) itself.

Michael Smedley
Exec VP & Chief Investment Officer, Morgan Meighan & Associates
Price
$9.860
Owned
Unknown
Showing 1 to 15 of 31 entries