Boulevard Industrial REIT (BVD.UN-X)

Still likes this. Likes the industrial REIT space and its predictability. They are getting attractive cap rates within the sector, so they can make attractive acquisitions at 8%-9% cap rates and borrowing at 4%. If you have long-term lock-in leases at 9% and you are borrowing at 5%, the 500 basis point margin is very attractive. In industrial REITs, there are virtually zero costs to property owners. Feels this is going to be a growth stock going forward.

Very small, so you should have a long time horizon and have a high risk tolerance as well. The industrial market has some interesting legs at this point. Thinks it will continue to grow over time. They will continue to issue equity so focus on yield with this one.

Likes the management team. Industrial REIT. This is the growth vehicle for the former CEO of Dundee REIT. Thinks they will make individual acquisitions rather than buying a complete portfolio. They are waiting until they get to $100 Million in portfolio size before paying a dividend.

The industrial space is his favourite sector in the REITs, and this is his favourite play in that. At the end of the day, it first comes down to the business model and secondly to management. He likes this because it is very similar to the early days of industrial REITs, where instead of buying large portfolios, they are able to cherry pick and buy individual buildings. As a consequence, the cap rates that they get have been higher. The first buildings that they brought in had a cap rate of 9.5% and their borrowing rates are less than 4% giving you a very wide margin between those. They have a lot of ambitious growth plans. Good management.