28 Canadian REIT Stocks & ETFs with Expert Predictions (2019)

Had a good run in 2019, but now is breaking trend. He expects higher interest rates in 2021, which will pressure REITs. XRE will head lower in early-2020. He predicts a general market pullback in January.

(A Top Pick Feb 07/20, Down 22%) REITs outperformed into early March at which point he exited. There will be a time when REITs will come back.

XRE-T showed the experience of the REIT sector in a bad economy. Interest rates are going lower and lower. REITs are typically one of the last things to drop. When the baby gets thrown out with the bathwater, REITs go down also. The pullback last week is the first part of a short term trade…

Centres on the outlook for gold and gold producers. It's been an abandoned sector, but the fundamentals are pointing higher. US dollar has rolled over, starting to see inflation in the US, and it's held in well while markets have gone higher. There's been a move in the commodity in the last 6-8 weeks. Producers…

VDY vs. VRE when buying dips We just had a dip on Friday and you have to pounce on them. It's hard. You need to find a stock that trades in a channel, then buy when it hits the bottom of that channel. The TSX is weighted in the VDY. He prefers VDY given the…

It is safe in terms of distribution. They have exposure to Walmart, so in terms of cash flow it is safe, however they have zero growth. They have quite a bit of leasing to do. They have a good management team and some exciting developments. (Analysts’ price target is $20.75)

It has L-T as their largest tenants. He thinks very highly of management. The stock is pretty well valued today. It is a very safe company.

(A Top Pick Apr 30/20, Up 13%) It is US assets listed on the TSX. They have large warehouses to deal with eCommerse, which is rising post-pandemic. It still has quite a bit of upside.

It has done a good job of growing business internationally. It is really positive for the stock.

Dream Office vs. Dream Industrial Never a fan of Dream Office, which had a lot of Alberta exposure. He prefers the industrial side, which has performed better and faces little competition; there are only 3-4 industrial REITs in Canada. Hold both, don't buy or sell.

A small cap retail REIT. It is going to be a tough environment for them to operate in. Rent negotiation will be tough going forward. They are going to struggle.

He has never really fully understood their business model. There has been a recent take out off for $7.61 US per share. This is a real offer and the money would be there. Prior to that they had worked with a third-party, so it is precluding them from engaging in the current offer. Looming in…

The only REIT that focuses on the cannabis space. The company should trade at a premium to its NAV so it can go out and purchase more assets. It recently raised equity and has no debt so it is in a good spot. You'd have to own it based on its growth profile.

He is not bull on the office space. They have been growing in sub-markets he is not keen on. 37% is in Atlantic Canada and he is not keen on their holdings.

BEI.UN-T, MI.UN-T and CAR.UN-T. REITs are an interesting universe right now. There is mortgage deferral relief, commercial rent relief. Residential is the best place to be right now. CAR.UN-T would be the best one. BEI.UN-T has a good component out west with potential risk for Alberta. People are going to need places to live and…

This would be a hold for him, if not a sell. It has US grocery stores in small centres. It has an external management contract, which he feels is not in alignment with share holders.

It is in the right sector. We are in the earlier innings of a whole change in the supply chains. It has recovered off its lows and is a safe hold. Longer term this is a really good stock to own. The distribution is quite safe.

Really likes it. Agreed to be acquired by Blackstone. Wouldn't recommend it at this point. Doesn't see a higher bidder. Great opportunity to look at other Canadian REITs with global assets. Look at Granite REIT instead.

He likes the warehouse sector globally. Retailers had just-in-time inventory and may now have to increase inventories. Now is the time to buy assets and GRT.UN-T just issued equity and attractive bonds. The balance sheet is in great shape. (Analysts’ price target is $75.68)

He is a big fan of this company and likes their management team. Their own risk management tolerance is low. A lot of buildings in Toronto and Vancouver, but they also hold office space in tight markets. They find older buildings and turn into nice new spaces. The balance sheet is healthy.

Inovalis (INO.UN-T) or Dream Global (DRG.UN-T)? There is probably too much duplication to own both. These assets are a little more spread out, and concentrated in France. Instead of buying Canadian names that have exposure to Europe, he is actually going directly into Europe and buying some names.

He likes it for being in multi-family rentals. It's challenged because it's controlled by Morguard Corp. Diversification is 43% in Canada, 57% in the United States. Nice dividend. Probably worth $22/share. But there's better value elsewhere like CAP REIT or BSR.

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.

He would avoid this one. Office space is difficult to re-tenant. They have an external management structure for their assets, which does not necessarily leave great alignment.

Dividend safe? They did a convertible debenture that he participated in. This is an Edmonton based land bank company. A longer term play. What tends to happen is goes quietly along for a while then they sell off an asset, which causes a spike up. It does not have a large enough dividend to hold…

It is highly leveraged and the payout ratio is close to 100%, recently they cut the dividend and there was management turnover. There were a lot of complicated transactions, some of which were not arm’s length.

One of the only REITs that he still holds. He likes Australia. The problem with this one was when they first set it up, the Australian currency took a big hit right off the bat and that’s why it came down. They are now hedged. Great entry point at this level.

He is talking about US REITS generally and using the Vanguard REIT ETF to show the pattern across the industry. The EFT was trading in a consolidation range ($80-85’s) all of last year, then there was a sharp drop. The ETF has been retracing but the price (now $75.88) is not close to where it…

Generally likes mortgages. You get higher yields and there is harder collateral security. You are a step removed from the volatility of underlying real estate prices. 30% of it is in two securities, which concerns him somewhat.

Around 14% is pretty typical yield for mortgage REITs. This owns Agency Mortgage REITs, both fixed and adjustable rates. If you look through the results of the capital raise they did recently, it was dilutive, so their book value per share was about $7 which dropped to $6.70-$6.80. He doesn’t like to see this. Core…

US real estate ETF? Well diversified un-levered real estate investment.

It is highly leveraged and the payout ratio is close to 100%, recently they cut the dividend and there was management turnover. There were a lot of complicated transactions, some of which were not arm’s length.