Northview Apartment Real Estate (NVU.UN-T)

Doesn’t own this, primarily because the balance sheet is a little too highly leveraged for his liking. He worries about the sheer amount of debt they are carrying, which is being coupled with some soft fundamentals in the market they are in. He would prefer others.

This sector has done pretty well surprisingly. Feels people are nervous about real estate in Canada, but he doesn’t see it being an issue until 2018. REITs are going to rise moderately, but there will be a cap on them. The chart shows a series of higher lows, and will run into a little resistance at the $22-$26 range. The indicators are all starting to turn up. The downside is relatively limited, and this is a type of holding you should have.

(A Top Pick June 6/16. Up 8.99%.) This has a beautiful of 7.5% yield, and fully sustainable. A lot of their apartments are out West where things are not as robust. They are working to try to improve their issues. If there are some improvements out West, he can see the stock going to $25, and it could be a takeover candidate.

A combination of apartments in the GTA as well as more remote communities in Alberta and BC. With rental controls in Ontario, he would be a little concerned.

The apartment REIT sector is quite attractive. There are immigrants coming into Canada. With the way housing prices are going, people are going to need to rent. This company has a big focus in the North in Alberta. It was under pressure last year because of oil prices and what would happen in Alberta. Trading below its NAV and has a strong yield of about 8%. They are able to get CMHC loans against some of their properties, which makes their financing quite attractive.

A little controversial. The company went through a transaction where they expanded into Ontario. The market didn’t like the deal, so the stock suffered. However, at this point, you are getting about 44% exposure to Ontario and East, and the rest is Alberta and North. He likes having some oil exposure in his portfolios. In effect, this is Ontario apartments at Alberta prices, a significant discount to any other Alberta REIT and a higher yield. He doesn’t expect a lot during 2017, but knows his yield is safe. As they improve efficiencies in Ontario, they’ll start to see gains late in the year and into 2018. Dividend yield of 7.82%. (Analysts’ price target is $20.50.)

He started buying this in the $19 range. Although they had a lot of Fort McMurray and Northern BC exposure, they also have a lot of Ontario assets now. You are now getting Ontario apartments for the price of Alberta apartments, which he likes. 8.6% dividend yield.

They did an offering this week at about a 3% discount to what the stock was trading at. The apartment sector is a good sector. People have undoubtedly been reading about apartment shortages in major Canadian cities, so if you own a lot of apartment buildings, it is not a bad place to be. This is a pretty good operator and it is a good sector to be in.

He is looking at this. It has a lot of northern exposure, which is actually quite stable, but the oil markets less so. Fort McMurray has really picked up, but some of the other oil/gas areas are still seeing weakness. With the merger they add an Ontario portfolio which is much more stable. You’ll probably have to wait a couple of years for this whole thing to work through, but in the meantime you are getting a very attractive yield. 8% yield.

Cheapest multi family residence by any metric. There are no problems, but people are treating it like it was a Fort McMurray play. There is a lot of return of capital. It is underpriced and deserves a better multiple.

This has a large amount of real estate in Fort McMurray and doesn’t know how the fire will affect them. Also, the oil markets they are in are experiencing very high vacancies. They did a merger and now also have an Ontario portfolio. If you have a long-term horizon, and because of the volatility, you will probably do very well. Dividend yield of over 8%.

They have less oil exposure than before recent acquisitions. He does not have post-merger financials in order to evaluate them as a buy. This should keep the stock low for some time. 9.01% yield. Pays you while you wait.

Has been picking away at this. A great entry point. They acquired True North Apartment (TN.UN-T). There is good and bad associated with the deal. However, on a pro forma basis, the payout ratio is less than 75% and you are getting a high single digit dividend yield with very good geographical diversification in the Canadian apartment sector. A great name to buy because apartments are a very defensive asset class. The diversification because of the acquisition should be beneficial. Dividend yield of 8.65%.