Andrew Moffs

Finally at the precipice. The Fed and BOC have both cut interest rates. Research shows that from the beginning of the Fed's easing cycle real estate stocks, on average, outperform -- up 20% over 2 years, up 30% over 3 years. Couple that with the publicly traded real estate sector being the most underweighted in history. Though you have to look at each sub-sector, it's a pretty compelling setup on fundamentals for both sides of the border.

On the leasing and operations side, ever since interest rates went higher, there's been a slowdown in decision-making by tenants for office space, industrial warehousing, and the like. CFOs were not keen to put more capital to work when they didn't really know what their cost of capital would be. Today, it's a lot easier to make that decision.

On the other side of the balance sheet, the liability side, rates coming down makes it cheaper to access capital. Availability of credit has improved, and transactions should pick up. Public markets overly discounted what would happen to property prices when rates went higher. There should be a catchup trade, and that's begun.

Balance sheet's really under pressure, making progress with repairing. Management shakeup, but now the new CEO's leaving in 2025. Lots of heavy work to do. Only for those with high risk tolerance. More compelling opportunities elsewhere.

Both sides of the border, self-storage is in a more difficult operating environment. Less needed with less housing activity, so pricing power is elusive. Income growth has fallen, more expenses. Getting interesting at these levels. If you own, you could hold and hope for a recovery in 2025.

A more bullish outlook on housing would be a catalyst.

Concerns over exposure to condo market. Great portfolio, quite defensive. He's bullish on outdoor shopping centre landscape across Canada, with low supply and increasing demand from population growth. Great management. You're well served by holding on.

He's generally positive on retail across Canada. WMT is its largest tenant, with very good credit; but doesn't pay a lot in terms of "escalators" on rents. Lower growth profile than other opportunities. Last quarter, income growth just 1.3%. Own it for a consistent yield; previously not covered, but now it is. 

Undervalued, great fundamentals. Going through strategic alternatives. A buy and hold strategy will reward you; either from selling off properties one by one, or by closing the gap between public and private market value. In the future, the company won't exist and you'll get back your capital, likely at a premium to where trading today.

Office has suffered since the pandemic, supply/demand are out of balance everywhere. Occupancy has slipped to lowest level in 2 years. Leverage is quite high, while net operating income is down this quarter. An execution story. Some wonder if distribution can be sustained.

Diversified industrial globally. High quality properties. 10-12% discount to NAV. Focused on larger part of the market (over 300k square feet), where there's more vacancy. It needs to work through that. Likes the sector, stock's interesting at this level, keep owning it if you do.

Attractive valuation, about 25-30% undervalued. Last-mile distribution. Europe is seeing positive fundamentals, especially in the Netherlands and Germany. Add on weakness, sell on strength.

The appeal is its very pure form of cashflow. Rarely trades at a discount to NAV, and today's one of them. Perplexing that it trades like an apartment REIT, but is way more defensive with better cashflow growth. Good setup for 2025.

Great opportunity to buy now, near 20% discount. Cashflow growth is growing in a compelling way. Pullback due to concerns over population growth. Alberta still looks like a winner from inter-provincial migration for affordable housing.

Generally, caution is warranted in apartments. Stocks are now coming into interesting levels. Great population growth, but could turn negative next year. Very good portfolio. Selling older buildings and buying new from developers. So cashflow growth should improve -- buildings won't need such extensive repairs, plus new buildings are not subject to rent control.

Sale of manufactured housing communities business will give them lots of cash. Look for share buybacks. Long term, feels good about multi-family residential. Just sit through the mid-term volatility.

Great company, assets, and management. Biggest landlord in Manhattan, which has enjoyed greater return-to-work than any other city. Stock's fully priced, so he exited. Good growth ahead, but see his Top Picks.

Now trading at an interesting level, over 15% discount to NAV. Fallen perhaps because of announcement on immigration being curtailed. 60% of portfolio in Atlantic Canada, actively diversifying in Ontario and BC. Likes that 44% of assets are not subject to rent control. Expecting results to be good. Stay the course.