Joshua Varghese
Member since: Aug '18
Portfolio manager at
Signature Global Asset Management, CI Investments
Signature Global Asset Management, CI Investments
75 Opinions
Latest Top Picks
(A Top Pick Apr 01/19, Down 12%) Two days after making the pick, the company announced an acquisition that the market did not like. They are the premiere owner of single family rental properties in the US. They are investing a lot of money into technology for the sector. They are looking to expand their platform of properties -- great in the long term. The market didn't like the departure from the existing business model. It is trading at a massive discount to NAV, so he still likes the value.
(A Top Pick Apr 01/19, Up 0.2%) He still really likes this holding. The market is a little worried about global growth. This is a real estate service company, so they are vulnerable to these concerns. However, they provide so many more services to help companies optimize their office space. The outsourcing of such services works well for them. Today is good entry value, he thinks.
(A Top Pick Apr 01/19, Down 0.7%) They are not very active in raising equity, so they are off the radar for many investors. The CEO is buying their stock in massive amounts. This is great signal of support for the future business opportunities. The Toronto office market is very strong. He would continue to hold this.
The only holder of cold warehouses. Temperature controlled for storage close to consumers. The value will continue to grow as investors understand their strong hold in the market. Yield 2.33% (Analysts’ price target is $36.07)
They repurpose real estate in high return markets. They have done this will deleveraging their balance sheet. One of the few international REITs in Canada. A pullback in stock price makes this a good time to enter. Yield 3.3% (Analysts’ price target is $51.58)
0
0
0
0
0
Your ReactionSignal
Opinion
Expert
Chart
COMMENT
COMMENT
July 9, 2019
Closing stores should be part of their strategy. There needs to be more definitive action by the management team. Management understands how expensive it is becoming to run a traditional retail operation. Digital and e-commerce products are making it very competitive to run a business. The real estate they possess is very valuable and it may be put to better use than retail. The deal being offered to HBC-T is very low at just $9.45 per share -- the real estate is worth $30 per share alone not including the value of their inventory. He thinks the minority shareholders will feel the offer is far to low as well.
Closing stores should be part of their strategy. There needs to be more definitive action by the management team. Management understands how expensive it is becoming to run a traditional retail operation. Digital and e-commerce products are making it very competitive to run a business. The real estate they possess is very valuable and it may be put to better use than retail. The deal being offered to HBC-T is very low at just $9.45 per share -- the real estate is worth $30 per share alone not including the value of their inventory. He thinks the minority shareholders will feel the offer is far to low as well.
department stores
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.
REAL ESTATE
HOLD
HOLD
July 9, 2019
Entry into Montreal? The management team is one of the best out there. They buy undervalued properties and get big uplifts. They have perfected in Ottawa and the GTO. Montreal is not a new market to them. Overall the residential market space is well favoured. The tech industry has spawned in Toronto and it is spreading across the country. There is a shortage of good quality housing across the country. The yield just above 3%, but you are really buying this for their growth opportunities.
Entry into Montreal? The management team is one of the best out there. They buy undervalued properties and get big uplifts. They have perfected in Ottawa and the GTO. Montreal is not a new market to them. Overall the residential market space is well favoured. The tech industry has spawned in Toronto and it is spreading across the country. There is a shortage of good quality housing across the country. The yield just above 3%, but you are really buying this for their growth opportunities.
property mngmnt/investment
Joshua Varghese
Portfolio manager, Signature Global Asset Management, CI Investments
$14.150
Unknown
HOLD
HOLD
July 9, 2019
Competing against Costco & Walmart? Associated with Sobey's. The competition has been there for a while. Sobey's has been developing good partnerships including into delivery. The pressure that has come to retail outlets is coming to groceries as well. You will see stores to optimize space. Sobey's is already looking into this, he feels. Crombie owns the right real estate in the right markets and they have a good redevelopment plan. He would continue to hold.
Competing against Costco & Walmart? Associated with Sobey's. The competition has been there for a while. Sobey's has been developing good partnerships including into delivery. The pressure that has come to retail outlets is coming to groceries as well. You will see stores to optimize space. Sobey's is already looking into this, he feels. Crombie owns the right real estate in the right markets and they have a good redevelopment plan. He would continue to hold.
property mngmnt/investment
Joshua Varghese
Portfolio manager, Signature Global Asset Management, CI Investments
$15.510
Unknown
COMMENT
COMMENT
July 9, 2019
In isolation BPY.UN-T is a great name. It trades at a large discount to NAV and pays a yield of 6%. He looks at other real estate stocks and he would favour owning the parent BAM-N. He prefers the parent as they collect fees from all the other entities. Now is a good time to own BPY.UN-T due to the discount to NAV and this lower interest rate environment. He would be cautious that they do hold a lot of retail shopping centres, which may require capital investment in the future.
In isolation BPY.UN-T is a great name. It trades at a large discount to NAV and pays a yield of 6%. He looks at other real estate stocks and he would favour owning the parent BAM-N. He prefers the parent as they collect fees from all the other entities. Now is a good time to own BPY.UN-T due to the discount to NAV and this lower interest rate environment. He would be cautious that they do hold a lot of retail shopping centres, which may require capital investment in the future.
REAL ESTATE
Joshua Varghese
Portfolio manager, Signature Global Asset Management, CI Investments
$25.400
Unknown
COMMENT
COMMENT
July 9, 2019
In isolation BPY.UN-T is a great name. It trades at a large discount to NAV and pays a yield of 6%. He looks at other real estate stocks and he would favour owning the parent BAM-N. He prefers the parent as they collect fees from all the other entities. Now is a good time to own BPY.UN-T due to the discount to NAV and this lower interest rate environment. He would be cautious that they do hold a lot of retail shopping centres, which may require capital investment in the future.
In isolation BPY.UN-T is a great name. It trades at a large discount to NAV and pays a yield of 6%. He looks at other real estate stocks and he would favour owning the parent BAM-N. He prefers the parent as they collect fees from all the other entities. Now is a good time to own BPY.UN-T due to the discount to NAV and this lower interest rate environment. He would be cautious that they do hold a lot of retail shopping centres, which may require capital investment in the future.
management/diversified
Joshua Varghese
Portfolio manager, Signature Global Asset Management, CI Investments
$48.570
Unknown
COMMENT
COMMENT
July 9, 2019
Warehouse REITs? Industrial and warehouse assets have become a buzz phrase. Storing assets closer to retail consumers is a real thing. This requires companies to revamp their entire supply chain and warehousing is critical and it only represents about 5% of a retail cost -- it is still pretty cheap. He would favour PLD-N in the US. It is a little expensive right now. He likes them because they are exploring their own business model to help companies get better value for their space. Overtime this will lead to a better revenue stream for them.
Warehouse REITs? Industrial and warehouse assets have become a buzz phrase. Storing assets closer to retail consumers is a real thing. This requires companies to revamp their entire supply chain and warehousing is critical and it only represents about 5% of a retail cost -- it is still pretty cheap. He would favour PLD-N in the US. It is a little expensive right now. He likes them because they are exploring their own business model to help companies get better value for their space. Overtime this will lead to a better revenue stream for them.
investment companies/funds
Joshua Varghese
Portfolio manager, Signature Global Asset Management, CI Investments
$82.620
Unknown
PAST TOP PICK
PAST TOP PICK
July 9, 2019
(A Top Pick Apr 01/19, Down 12%) Two days after making the pick, the company announced an acquisition that the market did not like. They are the premiere owner of single family rental properties in the US. They are investing a lot of money into technology for the sector. They are looking to expand their platform of properties -- great in the long term. The market didn't like the departure from the existing business model. It is trading at a massive discount to NAV, so he still likes the value.
(A Top Pick Apr 01/19, Down 12%) Two days after making the pick, the company announced an acquisition that the market did not like. They are the premiere owner of single family rental properties in the US. They are investing a lot of money into technology for the sector. They are looking to expand their platform of properties -- great in the long term. The market didn't like the departure from the existing business model. It is trading at a massive discount to NAV, so he still likes the value.
REAL ESTATE
PAST TOP PICK
PAST TOP PICK
July 9, 2019
(A Top Pick Apr 01/19, Up 0.2%) He still really likes this holding. The market is a little worried about global growth. This is a real estate service company, so they are vulnerable to these concerns. However, they provide so many more services to help companies optimize their office space. The outsourcing of such services works well for them. Today is good entry value, he thinks.
(A Top Pick Apr 01/19, Up 0.2%) He still really likes this holding. The market is a little worried about global growth. This is a real estate service company, so they are vulnerable to these concerns. However, they provide so many more services to help companies optimize their office space. The outsourcing of such services works well for them. Today is good entry value, he thinks.
REAL ESTATE
PAST TOP PICK
PAST TOP PICK
July 9, 2019
(A Top Pick Apr 01/19, Down 0.7%) They are not very active in raising equity, so they are off the radar for many investors. The CEO is buying their stock in massive amounts. This is great signal of support for the future business opportunities. The Toronto office market is very strong. He would continue to hold this.
(A Top Pick Apr 01/19, Down 0.7%) They are not very active in raising equity, so they are off the radar for many investors. The CEO is buying their stock in massive amounts. This is great signal of support for the future business opportunities. The Toronto office market is very strong. He would continue to hold this.
property mngmnt/investment
DON'T BUY
DON'T BUY
July 9, 2019
It has traded range bound, but has a decent yield. The free cash flow per share has done nothing during the strongest industrial market in years. They keep coming back to the market to raise equity to buy more assets. He would like to see them pause on the equity raising. There are other REITs that have better growth opportunities. Yield 5.6%
It has traded range bound, but has a decent yield. The free cash flow per share has done nothing during the strongest industrial market in years. They keep coming back to the market to raise equity to buy more assets. He would like to see them pause on the equity raising. There are other REITs that have better growth opportunities. Yield 5.6%
BUY
BUY
July 9, 2019
An office focused REIT with assets in Germany and the Netherlands. He is not a fan of the parent organization, but is not a huge concern. Vacancy rates in Germany are less than 4%. He sees good office rental growth opportunity, which is averaging 7% per year. There is still room to run.
An office focused REIT with assets in Germany and the Netherlands. He is not a fan of the parent organization, but is not a huge concern. Vacancy rates in Germany are less than 4%. He sees good office rental growth opportunity, which is averaging 7% per year. There is still room to run.
REAL ESTATE
Joshua Varghese
Portfolio manager, Signature Global Asset Management, CI Investments
$14.060
Unknown
BUY WEAKNESS
BUY WEAKNESS
July 9, 2019
A big company that owns some good assets and a safe dividend yield. He would range trade this and is not clamoring to step in right now.
A big company that owns some good assets and a safe dividend yield. He would range trade this and is not clamoring to step in right now.
property mngmnt/investment
DON'T BUY
DON'T BUY
July 9, 2019
It has benefited from population growth in the residential housing space. They own assets across Canada. He thinks they may become a major take out target. Their free cash flow yield is pretty low, around 3%, so he thinks there may be better opportunities out there.
It has benefited from population growth in the residential housing space. They own assets across Canada. He thinks they may become a major take out target. Their free cash flow yield is pretty low, around 3%, so he thinks there may be better opportunities out there.
investment companies/funds
BUY WEAKNESS
BUY WEAKNESS
July 9, 2019
He thinks they are doing the right things. They have recognized the future of real estate is going to be into urban clusters -- coming office with retail and residential. They disposed off assets that did not fit the plan. The proceeds will be use to buy back stock and spending capital into new development opportunities. He would buy on weakness.
He thinks they are doing the right things. They have recognized the future of real estate is going to be into urban clusters -- coming office with retail and residential. They disposed off assets that did not fit the plan. The proceeds will be use to buy back stock and spending capital into new development opportunities. He would buy on weakness.
property mngmnt/investment
Joshua Varghese
Portfolio manager, Signature Global Asset Management, CI Investments
$26.580
Unknown
HOLD
HOLD
July 9, 2019
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 back ground there could be other bidders that might come forward. He will continue to hold their position.
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 back ground there could be other bidders that might come forward. He will continue to hold their position.
REAL ESTATE
TOP PICK
TOP PICK
July 9, 2019
The only holder of cold warehouses. Temperature controlled for storage close to consumers. The value will continue to grow as investors understand their strong hold in the market. Yield 2.33% (Analysts’ price target is $36.07)
The only holder of cold warehouses. Temperature controlled for storage close to consumers. The value will continue to grow as investors understand their strong hold in the market. Yield 2.33% (Analysts’ price target is $36.07)
REAL ESTATE
TOP PICK
TOP PICK
July 9, 2019
They repurpose real estate in high return markets. They have done this will deleveraging their balance sheet. One of the few international REITs in Canada. A pullback in stock price makes this a good time to enter. Yield 3.3% (Analysts’ price target is $51.58)
They repurpose real estate in high return markets. They have done this will deleveraging their balance sheet. One of the few international REITs in Canada. A pullback in stock price makes this a good time to enter. Yield 3.3% (Analysts’ price target is $51.58)
investment companies/funds
TOP PICK
TOP PICK
July 9, 2019
A new management team is working with a great balance sheet. They raised equity to keep the balance sheet in good shape. There should be good capital appreciation and cash flow growth going forward. Yield 4.55% (Analysts’ price target is $67.44)
A new management team is working with a great balance sheet. They raised equity to keep the balance sheet in good shape. There should be good capital appreciation and cash flow growth going forward. Yield 4.55% (Analysts’ price target is $67.44)
E.T.F.'s
N/A
N/A
April 1, 2019
Market. The lack of rising interest rates in Canada is good for REITs. Real estate companies have been performing quite well because it really comes down to the operations within their business. In the last few years money went into general growth equities to the detriment of RETIs. So any interruption to this expected growth of other equities would be good for REITs. The fund flows into REITs have turned positive. They are pretty fairly valued at this point but he sees no reason for the momentum to slow up. He is holding on and increasing in some cases. REITs have a low correlation to the broader markets.
Market. The lack of rising interest rates in Canada is good for REITs. Real estate companies have been performing quite well because it really comes down to the operations within their business. In the last few years money went into general growth equities to the detriment of RETIs. So any interruption to this expected growth of other equities would be good for REITs. The fund flows into REITs have turned positive. They are pretty fairly valued at this point but he sees no reason for the momentum to slow up. He is holding on and increasing in some cases. REITs have a low correlation to the broader markets.
Joshua Varghese
Portfolio manager, Signature Global Asset Management, CI Investments
BUY
BUY
April 1, 2019
It was a spin-off from L-T originally. They merged with CREET, who is a long standing super successful REIT with one of the best management teams out there. The marriage of these two brought a stellar portfolio together with a management team that knows how to operate through full cycles in a conservative manor. It should be a competitive force. There will be a lot of built-in future growth in the redevelopment of urban properties. There are no immediate catalysts at this point but worth holding on to.
It was a spin-off from L-T originally. They merged with CREET, who is a long standing super successful REIT with one of the best management teams out there. The marriage of these two brought a stellar portfolio together with a management team that knows how to operate through full cycles in a conservative manor. It should be a competitive force. There will be a lot of built-in future growth in the redevelopment of urban properties. There are no immediate catalysts at this point but worth holding on to.
REAL ESTATE
Joshua Varghese
Portfolio manager, Signature Global Asset Management, CI Investments
$14.140
Unknown
BUY WEAKNESS
BUY WEAKNESS
April 1, 2019
A good management team. They are the largest landlord to Sobeys, the largest grocery store in Canada. This is a landlord that is positioned to understand what e-commerce is going to do to physical real estate. They are trading at a discount and he would be picking away here.
A good management team. They are the largest landlord to Sobeys, the largest grocery store in Canada. This is a landlord that is positioned to understand what e-commerce is going to do to physical real estate. They are trading at a discount and he would be picking away here.
property mngmnt/investment
Joshua Varghese
Portfolio manager, Signature Global Asset Management, CI Investments
$14.180
Unknown
DON'T BUY
DON'T BUY
April 1, 2019
A huge dividend is not a good thing. The market is telling us something – the dividend is too high. They may be capitalizing too much of their maintenance expenditures. The CAP-X is about 6% of net operating income. It should be 20-25%, which is closer to what they are actually spending. They don’t have to cut their dividend, but at this point in the cycle and with more sensitivity in the cycle, they should be more conservative with their capital.
A huge dividend is not a good thing. The market is telling us something – the dividend is too high. They may be capitalizing too much of their maintenance expenditures. The CAP-X is about 6% of net operating income. It should be 20-25%, which is closer to what they are actually spending. They don’t have to cut their dividend, but at this point in the cycle and with more sensitivity in the cycle, they should be more conservative with their capital.
investment companies/funds
BUY
BUY
April 1, 2019
They lease to car dealerships. They are good long term leases. There is probably a benefit from lower interest rates. If they can get their equity price strong again then they can use equity markets again. It is a good quality company with a good stable yield. It has a sustainable 7.5% yield.
They lease to car dealerships. They are good long term leases. There is probably a benefit from lower interest rates. If they can get their equity price strong again then they can use equity markets again. It is a good quality company with a good stable yield. It has a sustainable 7.5% yield.
REAL ESTATE
Joshua Varghese
Portfolio manager, Signature Global Asset Management, CI Investments
$10.780
Unknown
BUY
BUY
April 1, 2019
They made a few big splashes, one being the acquisition of one of the largest mall REITs in the US. They saw an opportunity to put in a lot of capital. They have a long term game plan with these assets. They got really fortunate with this lower interest rate environment. It is trding at a 25% discount to NAV. It has one of the best teams in the world managing some of the best assets in the world. It is a good time to keep holding it for a long time.
They made a few big splashes, one being the acquisition of one of the largest mall REITs in the US. They saw an opportunity to put in a lot of capital. They have a long term game plan with these assets. They got really fortunate with this lower interest rate environment. It is trding at a 25% discount to NAV. It has one of the best teams in the world managing some of the best assets in the world. It is a good time to keep holding it for a long time.
REAL ESTATE
Joshua Varghese
Portfolio manager, Signature Global Asset Management, CI Investments
$27.700
Unknown
WEAK BUY
WEAK BUY
April 1, 2019
They have a great asset type, focused in the US. But we have seen no cash flow increase in a couple of years. The management team is great.
They have a great asset type, focused in the US. But we have seen no cash flow increase in a couple of years. The management team is great.
Joshua Varghese
Portfolio manager, Signature Global Asset Management, CI Investments
$13.850
Unknown
PAST TOP PICK
PAST TOP PICK
April 1, 2019
(A Top Pick Dec 05/18, Up 16%) They are a stellar company with a stellar management team. They are the dominant player of campuses to life sciences companies. It is important for these companies to be together to share ideas in an ecosystem. They have a free cash flow growth of north of 10%. He sees the company growing with their valuation. It is still a compelling investment opportunity.
(A Top Pick Dec 05/18, Up 16%) They are a stellar company with a stellar management team. They are the dominant player of campuses to life sciences companies. It is important for these companies to be together to share ideas in an ecosystem. They have a free cash flow growth of north of 10%. He sees the company growing with their valuation. It is still a compelling investment opportunity.
REAL ESTATE
PAST TOP PICK
PAST TOP PICK
April 1, 2019
(A Top Pick Dec 05/18, Up 14%) The largest owner of single family homes in the US. They institutionalized the space. When he bought them they had acquired a company and now they are coming out the other side. It is pretty fairly valued and you could cycle into one of the others in the space.
(A Top Pick Dec 05/18, Up 14%) The largest owner of single family homes in the US. They institutionalized the space. When he bought them they had acquired a company and now they are coming out the other side. It is pretty fairly valued and you could cycle into one of the others in the space.
REAL ESTATE
PAST TOP PICK
PAST TOP PICK
April 1, 2019
(A Top Pick Dec 05/18, Up 14%) They institutionalized single family homes in Canada. They seem to beat their peers every single quarter. They are poised to continue this kind of growth from here. It is a buy.
(A Top Pick Dec 05/18, Up 14%) They institutionalized single family homes in Canada. They seem to beat their peers every single quarter. They are poised to continue this kind of growth from here. It is a buy.
REAL ESTATE
BUY
BUY
April 1, 2019
It is an asset class he favours. The US demand on apartments will continue to be strong. He is not as favourable to their structure and payout ratio, but it is a fine way to play to get US exposure. They could get sold and they have attractive assets. It is a good hold from here.
It is an asset class he favours. The US demand on apartments will continue to be strong. He is not as favourable to their structure and payout ratio, but it is a fine way to play to get US exposure. They could get sold and they have attractive assets. It is a good hold from here.
REAL ESTATE
Comments
00000
© Stockchase Inc.
5
Stock saved to your watch list successfully.View Watch List
