Agellan Commercial REIT (ACR.UN-T)

A portfolio of US properties. It also has some interesting properties around the DVP area in Toronto. The CEO is one of the few people that not only knows how to buy, but also how to sell. Thinks that at some point, he will sell the entire company if he can, or bit by bit.

Owns assets both in Canada and the US. If you are buying something for income, he eventually thinks this company will be sold. Thinks you could do quite well.

It is a horse trader. They are always flipping properties. He prefers to look at the value of a steady cash flow going forward. Eventually it will have a catalyst to move the stock price forward.

They are going to be turning their portfolio for yield. You might have to wait a few months for anything to happen.

Acquired most of their US portfolio while the Cdn$ was still at a high level. The depreciation of the dollar has been very beneficial for them, which hasn’t quite shown up in the price yet. The real trigger for this is if they can start to sell down some of their Canadian assets and focus more exclusively on the US.

They do not have a buy and hold strategy, so you have to get comfortable that management will aggressively be churning the portfolio. Have recently expressed interest in selling their Canadian assets to put the money to work in the US. If there is a drag from selling to deploying, then the dividend is a little bit strained, but at this point the dividend is fully covered. He is watching this one from the sidelines.

Yield of around 8.5% and have about a 90% payout ratio, which is not overaggressive. Just sold 2 Toronto properties Valleywood and Parkway, and they want to focus on the US in office and industrial. There has been a bit of a recovery in the share price. They are more focused on their strategy now. He thinks we are at the end of the bull market in the REIT space, so he can’t get excited about this type of investment.

A cross boarder REIT. Good management team. The yield is safe.

A cross border REIT. Thinks there are some very interesting property valuation opportunities they have on the eastern side of Toronto. All of this takes a lot of time. You’ll have to be patient, so focus on your 8% dividend, and over time you’ll see some accretion opportunities.

(Market Call Minute) Interesting holding as they unearth value in their portfolio.

There is a lot of concern about what will happens to interest rates but much of that is already priced in. Doing excellent acquisitions. Hold onto it. Distribution is fully covered. Be paid to wait.

Recent IPO that he did not participate in. He was concerned with some of the tenant concentration and, one building in particular, where there was a head lease on the building which meant that the occupancy and the rents were being guaranteed, even though they were operating at well below what the company considered normalized. They would have to increase the occupancy significantly in order to achieve the run rate cash flow that they had promised on the IPO.