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Stock Opinions by Andrew Moffs

COMMENT
Interest rates and real estate investing. Sentiment continues positive. We're seeing real inflation, translating into rent growth, which is the key part of the valuation equation for real estate. Very high new lease growth in US sunbelt apartments, single family homes, and industrial sector. Those who own properties and have taken the opportunity of low interest rates to get well capitalized are well positioned. They have dry powder to take advantage of an increased rent environment in those sectors that have pricing power.
Unknown
COMMENT
Typically, real estate outperforms with rising inflation. Absolutely. It's able to keep its value, because as rents go up values go higher. As inflation costs go higher, so do replacement costs.
Unknown
COMMENT
Value in retail real estate? Yes, on the grocery and anchor shopping side. That's his focus right now, necessity shopping. Pandemic proved the resilience of this asset class. Institutions like Blackstone are getting back into the shopping centre space in the US.
Unknown
BUY
One of his favourites. Largest operator in Canada. Great sector, recession resilient. High-growth story. Strong internal cashflow. Good valuation compared to US peers. Customers are not only individuals but also businesses.
0
HOLD
Assets in US, trades on TSX. Shopping centres benefit when anchor tenant is a grocery. Good job growing portfolio. Balance sheet is fine, distribution is safe. Safe and stable hold as it takes time to digest recent acquisition.
REAL ESTATE
BUY
He'd hold long-term. Industrial properties in Europe are a bit behind in pricing. Rents and valuation should go up. Stable, tremendous balance sheet. Conservative debt levels. Diversified beyond Magna. Lots of upside. Discount to NAV.
property mngmnt / investment
HOLD
Great operator. Dominant lease to WMT, so distribution is safe. Long-term hold for income. As a total return investor, he looks for more. Tougher leasing environment, below 98% occupancy level.
investment companies / funds
DON'T BUY
Concentrated in Alberta. His reservation is that most assets are in retail and office, with only 5-6% industrial warehouse. These are two very tough sectors. Will take a long time to recover. Discount to NAV, but not many catalysts to close the gap. Instead, look at the apartment sector.
REAL ESTATE
COMMENT
REIT convertible debentures. For any new offering, always read the prospectus, the filings, and understand the fine print. Majority of the issues by Canadian REITs include a clause about "payment in kind". If bankruptcy, you would be paid back in shares, rather than having a seniority position for cash. He wouldn't typically invest in these, unless he's also willing to own the equity. In terms of bonds, there are better yield plays out there.
Unknown
COMMENT
Interesting transaction. Takeover at a discount, which is atypical and disappointing. Hard to assess this deal, not enough detail.
investment companies / funds
HOLD
Spinning out mall business as Primaris. Existing H&R will refocus on multi-family in the US, plus industrial. Office portfolio will be sold down. In time, have to see if markets reward H&R and the spinoff.
property mngmnt / investment
PAST TOP PICK
(A Top Pick Nov 10/20, Up 60%) Continues to recommend it. Tremendous job on capital allocation. In one year, over 40% NAV growth. High growth, right market, sweet spot in rental market. Trades at a discount.
REAL ESTATE
PAST TOP PICK
(A Top Pick Nov 10/20, Up 60%) Mid-market sunbelt strategy. Single-family rentals. Big catalyst in October was NYSE listing. Great internal and external growth. Still bullish despite the run.
REAL ESTATE
PAST TOP PICK
(A Top Pick Nov 10/20, Up 22%) Pandemic proved their resilience. Operating growth more muted this year. Apartment business is predicated on new people coming to Canada. Expects pricing power to return. Hidden upside with land they own. Great REIT.
investment companies / funds
BUY
Focused on industrial assets in Europe, Canada, US. Upside from external growth, plus Canadian portfolio is well positioned in Toronto and Montreal, the two tightest markets in Canada. Discount to NAV, nice yield.
REAL ESTATE
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