TSE:SOT.UN
5.88
0.05
(0.84%)
Analysis and Opinions about SOT.UN-T
Signal
Opinion
Expert
DON'T BUY
DON'T BUY
January 15, 2020
Very competent managers, but he doesn't like this REIT because they are externally managed--hit with external management fees. They manage public and private fees; he prefers internally managed REITs.
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Very competent managers, but he doesn't like this REIT because they are externally managed--hit with external management fees. They manage public and private fees; he prefers internally managed REITs.
DON'T BUY
DON'T BUY
July 9, 2019
A small Canadian office focused REIT in North America managed by the Slate Group. They announced a big distribution cut to re-invest the money into the portfolio. He thinks this is a chronic issue in the space and thinks they did the right thing. From here the downside is relatively protected. The discount to NAV can close in the next two years, but he is not sure what the catalyst would be. He would stay on the sidelines.
A small Canadian office focused REIT in North America managed by the Slate Group. They announced a big distribution cut to re-invest the money into the portfolio. He thinks this is a chronic issue in the space and thinks they did the right thing. From here the downside is relatively protected. The discount to NAV can close in the next two years, but he is not sure what the catalyst would be. He would stay on the sidelines.
SELL
SELL
May 30, 2019
Cut distribution. High leverage, over 50%, which is too high for a REIT. Prefers to play the urban market and class A, not class B. Fundamentals are not what she's interested in. Leverage needs to come down significantly. Concern is how do they grow?
Show full opinionHide full opinionCut distribution. High leverage, over 50%, which is too high for a REIT. Prefers to play the urban market and class A, not class B. Fundamentals are not what she's interested in. Leverage needs to come down significantly. Concern is how do they grow?
COMMENT
COMMENT
May 28, 2019
The dividend is safe. He is cautious as to what expect from share price appreciation. They are interest sensitive. So good news baked in with language around interest rates. He thinks there is an increasing probability that interest rates may be cut. This is more of a yield play.
Show full opinionHide full opinionThe dividend is safe. He is cautious as to what expect from share price appreciation. They are interest sensitive. So good news baked in with language around interest rates. He thinks there is an increasing probability that interest rates may be cut. This is more of a yield play.
BUY WEAKNESS
BUY WEAKNESS
March 27, 2019
SOT is down because it cut its dividend to re-balance the company and had bought property in Chicago. This has been a pick of his. It's down 30% so it's now an entry point.
Show full opinionHide full opinionSOT is down because it cut its dividend to re-balance the company and had bought property in Chicago. This has been a pick of his. It's down 30% so it's now an entry point.
COMMENT
COMMENT
March 20, 2019
It has struggled with some vacancies in Toronto. Honestly, he doesn't know much about this REIT. He prefers SRT.UN-T which focuses on grocers in mid-market US towns and they have reduced their leverage. He likes SRT's American operations and its defensiveness. The only negative is an external managed contract that seems to be going on forever.
Show full opinionHide full opinionIt has struggled with some vacancies in Toronto. Honestly, he doesn't know much about this REIT. He prefers SRT.UN-T which focuses on grocers in mid-market US towns and they have reduced their leverage. He likes SRT's American operations and its defensiveness. The only negative is an external managed contract that seems to be going on forever.
COMMENT
COMMENT
September 7, 2018
Problem is that whenever it gets to $8, like clockwork, they do an equity financing, and the stock gets whacked. Good managers, who own a lot of stock. Long-term, bulking up on acquisitions makes sense. Not a bad stock, but frustrating. Yield above 9%.
Problem is that whenever it gets to $8, like clockwork, they do an equity financing, and the stock gets whacked. Good managers, who own a lot of stock. Long-term, bulking up on acquisitions makes sense. Not a bad stock, but frustrating. Yield above 9%.
BUY
BUY
August 14, 2018
He likes it. Sees strong growth and a positive outlook. He wants a REIT to generate cash flow, and this one is paying nearly 10%--that he feels is sustainable. Has an $8.50 target.
He likes it. Sees strong growth and a positive outlook. He wants a REIT to generate cash flow, and this one is paying nearly 10%--that he feels is sustainable. Has an $8.50 target.
COMMENT
COMMENT
May 8, 2018
He used to own this, got tired of them constantly raising money whenever the stock price went up. The balance sheet is healthy, the payout ratio is good, and the dividend is very generous (8.3%). He thinks several investors got sick of it recently, and that’s why the price has dropped.
He used to own this, got tired of them constantly raising money whenever the stock price went up. The balance sheet is healthy, the payout ratio is good, and the dividend is very generous (8.3%). He thinks several investors got sick of it recently, and that’s why the price has dropped.
COMMENT
COMMENT
July 18, 2017
As a group, REITs trade a lot like the bond market. The selloff in the Canadian bond market in the last 6 weeks, puts pressure on utilities, REITs and consumer staples. In general, he is Short the REIT sector. This has a 9.4% dividend yield while the peer group is less than 5%.
As a group, REITs trade a lot like the bond market. The selloff in the Canadian bond market in the last 6 weeks, puts pressure on utilities, REITs and consumer staples. In general, he is Short the REIT sector. This has a 9.4% dividend yield while the peer group is less than 5%.
COMMENT
COMMENT
April 18, 2017
A suburban office REIT with properties in the Maritimes as well as some in the GTA, but always in the suburban setting. Good management. He is not a big fan of suburban office. The dividend of 7%+ is safe.
A suburban office REIT with properties in the Maritimes as well as some in the GTA, but always in the suburban setting. Good management. He is not a big fan of suburban office. The dividend of 7%+ is safe.
BUY
BUY
April 10, 2017
They are in an area that is a little more economically sensitive than retail or industrial. If you are comfortable with the yield and the sector then this is perfectly fine.
They are in an area that is a little more economically sensitive than retail or industrial. If you are comfortable with the yield and the sector then this is perfectly fine.
COMMENT
COMMENT
February 3, 2017
A suburban office REIT. He is a little hesitant to be investing in the suburban office market. There is so much pressure to be downtown and so many buildings are continuing to be constructed. A lot of the demand is coming from the suburbs. Management of this REIT is really smart, and they have recently launched an opportunity fund for office. There will not be a lot of gain in price, but you will get your income. There is easier yield elsewhere. Yield of 9.5%.
A suburban office REIT. He is a little hesitant to be investing in the suburban office market. There is so much pressure to be downtown and so many buildings are continuing to be constructed. A lot of the demand is coming from the suburbs. Management of this REIT is really smart, and they have recently launched an opportunity fund for office. There will not be a lot of gain in price, but you will get your income. There is easier yield elsewhere. Yield of 9.5%.
COMMENT
COMMENT
November 17, 2016
Suburban office buildings. They have a balanced portfolio. As an operator, the company is fantastic. They know how to make money in suburban offices, but he is concerned about the trends as there are a lot of moving pieces, especially with where the Canadian economy is right now.
Suburban office buildings. They have a balanced portfolio. As an operator, the company is fantastic. They know how to make money in suburban offices, but he is concerned about the trends as there are a lot of moving pieces, especially with where the Canadian economy is right now.
COMMENT
COMMENT
October 18, 2016
(Market Call Minute.) A good company in a bad sector. The office space is going to be tough for some time to come, but this is one of the winners within that space.
(Market Call Minute.) A good company in a bad sector. The office space is going to be tough for some time to come, but this is one of the winners within that space.
