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Markets. He expects more the same in 2013 for REITs. Half of returns are from cash flows and the other half from yields. 10-14% range. If you see higher cash flows from REITs then they would be closer to the 14% end of the range otherwise closer to the 10% range. The low interest rates and low growth environment will cause increased demand for real estate. Fundamentals for Real Estate have never been better, and occupancy is the highest it has ever been.
The largest seniors housing REIT is Chartwell. Did a great job over the last two years of bringing down their payout ratio and improving their portfolio and bringing their leverage down over the last two years. Fair premium to its NAV. He is holding on and is favorable to this sector but he sees a slowdown in the Canadian housing market. Expects a distribution increase.
The largest seniors housing REIT is Chartwell. Did a great job over the last two years of bringing down their payout ratio and improving their portfolio and bringing their leverage down over the last two years. Fair premium to its NAV. He is holding on and is favorable to this sector but he sees a slowdown in the Canadian housing market. Expects a distribution increase.
5.1%. Canada’s largest REIT, retail properties across Canada. 15% NOI comes from US. Distribution is absolutely safe and just announced a distribution increase. Will be a big beneficiary to US retailers coming to Canada. Payout ratio will come down even further and there may be distribution increases. Also, expects unit price increases.
5.1%. Canada’s largest REIT, retail properties across Canada. 15% NOI comes from US. Distribution is absolutely safe and just announced a distribution increase. Will be a big beneficiary to US retailers coming to Canada. Payout ratio will come down even further and there may be distribution increases. Also, expects unit price increases.
16% yield. It is high but you have to appreciate their business model. Mortgages in the US. They borrow short term and invest in mortgage they are purchasing. Biggest risk is pre-payment by mortgage holders. That has happened recently. But this one is their preferred name in this space. They purchased assets recently that are not as prone to pre-payment. Thinks the yield will be the total return for 12 months.
16% yield. It is high but you have to appreciate their business model. Mortgages in the US. They borrow short term and invest in mortgage they are purchasing. Biggest risk is pre-payment by mortgage holders. That has happened recently. But this one is their preferred name in this space. They purchased assets recently that are not as prone to pre-payment. Thinks the yield will be the total return for 12 months.
Diversified REIT with most assets in Quebec. Has been in the penalty box because of decisions recently. Arranged a financing transaction for a family that owns a large part of the REIT for a project outside of the REIT. Thinks most of bad news is priced in. 6.5% yield. Can deliver 3-4% cash flow growth. Continues to hold.
Diversified REIT with most assets in Quebec. Has been in the penalty box because of decisions recently. Arranged a financing transaction for a family that owns a large part of the REIT for a project outside of the REIT. Thinks most of bad news is priced in. 6.5% yield. Can deliver 3-4% cash flow growth. Continues to hold.
5.9%. They have transformed themselves. Sold off industrial assets. Pure play office REIT. Less on the acquisition side and more focus on the portfolio. You can expect the cash flow stability to continue. Distribution increase is in the cards. 12-14% total return expected.
5.9%. They have transformed themselves. Sold off industrial assets. Pure play office REIT. Less on the acquisition side and more focus on the portfolio. You can expect the cash flow stability to continue. Distribution increase is in the cards. 12-14% total return expected.
7%. Sustainable distribution. Diversified. 20% in US. Fan of US strategy. They know those markets well. Doesn’t expect a distribution increase. Thinks people are waiting to see the ratio and leverage come down. He feels they are focused on this and will execute. 14% upside in price.
7%. Sustainable distribution. Diversified. 20% in US. Fan of US strategy. They know those markets well. Doesn’t expect a distribution increase. Thinks people are waiting to see the ratio and leverage come down. He feels they are focused on this and will execute. 14% upside in price.
Offer made for $26, but he feels it is worth $28-$29. Enclosed shopping malls in Canada. Thinks the portfolio has a lot of value. Target is taking up a lot of locations in their malls. He would prefer it to continue to trade.
Offer made for $26, but he feels it is worth $28-$29. Enclosed shopping malls in Canada. Thinks the portfolio has a lot of value. Target is taking up a lot of locations in their malls. He would prefer it to continue to trade.
The only REIT that has all of its assets outside of Canada. It is in Germany, average to higher quality. You want to look for them to make accretive acquisitions. They recently bought higher quality offices that are adding to their cash flow per unit. You want to see less than 50% leased to one tenant.
The only REIT that has all of its assets outside of Canada. It is in Germany, average to higher quality. You want to look for them to make accretive acquisitions. They recently bought higher quality offices that are adding to their cash flow per unit. You want to see less than 50% leased to one tenant.
You saw a pullback over the last 6-8 weeks that makes REITs more attractive. This is one of his favourite REITs. Mostly power centers anchored by Wal-Mart. 99% stable occupancy. Possibility of distribution increase.
You saw a pullback over the last 6-8 weeks that makes REITs more attractive. This is one of his favourite REITs. Mostly power centers anchored by Wal-Mart. 99% stable occupancy. Possibility of distribution increase.
5.6% Trading at a discount to NAV. Portfolio is long term leased and debt is long term as well. When names like this trade below NAV and you see possibility for distribution increases they become very attractive. Should see the majority of its Calgary development fully leased to Encana in 2013/14 and when the cash flow comes on, you could see two additional distribution increases, which they have done for 11 consecutive quarters. Valuation is not reflective of where it should be.
5.6% Trading at a discount to NAV. Portfolio is long term leased and debt is long term as well. When names like this trade below NAV and you see possibility for distribution increases they become very attractive. Should see the majority of its Calgary development fully leased to Encana in 2013/14 and when the cash flow comes on, you could see two additional distribution increases, which they have done for 11 consecutive quarters. Valuation is not reflective of where it should be.
Apartment REIT with mobile home communities, which are very strong cash flowing vehicles. They spent the last 2 or 3 years putting a lot of capital into assets and acquisitions that resulted in increased cash flow per unit. Payout ratio has come down from over 100% into the 80’s. First distribution increases last year for many years. 3-6% cash flow growth going forward. 4.5% yield. They plan on yearly distribution increases going forward.
Apartment REIT with mobile home communities, which are very strong cash flowing vehicles. They spent the last 2 or 3 years putting a lot of capital into assets and acquisitions that resulted in increased cash flow per unit. Payout ratio has come down from over 100% into the 80’s. First distribution increases last year for many years. 3-6% cash flow growth going forward. 4.5% yield. They plan on yearly distribution increases going forward.
An asset class you can’t get access to in Canada in the public markets. It is condo-style student housing within a mile max of campus, if not on it. Through financial crisis, they generated organic cash flow growth. 60% payout ratio so they expect a dividend increase. Made a huge acquisition last year which should come on line this year. 2-4% cash flow from the portfolio itself. 12-14% total return going forward.
An asset class you can’t get access to in Canada in the public markets. It is condo-style student housing within a mile max of campus, if not on it. Through financial crisis, they generated organic cash flow growth. 60% payout ratio so they expect a dividend increase. Made a huge acquisition last year which should come on line this year. 2-4% cash flow from the portfolio itself. 12-14% total return going forward.
Markets. He expects more the same in 2013 for REITs. Half of returns are from cash flows and the other half from yields. 10-14% range. If you see higher cash flows from REITs then they would be closer to the 14% end of the range otherwise closer to the 10% range. The low interest rates and low growth environment will cause increased demand for real estate. Fundamentals for Real Estate have never been better, and occupancy is the highest it has ever been.