TOP PICK
(A Top Pick Aug 15/07. Down 14%.) Had to pare down a sizable acquisition and accretion got very skinny. This was headline news that weighed heavily on the price. Rock solid growth. 8.5% free cash flow yield. Tenant base is retail anchored by Wal-Mart.
TOP PICK
Office, industrial and retail across Canada. Low payout ratio. Very conservative accounting. Low leverage. 4.75% yield. 70% payout ratio. Free cash flow yield of about 7%.
PAST TOP PICK
(A Top Pick Aug 15/07. Down 19%.) In June/07 sold two thirds of their assets so earnings were reduced. Q3 should be their first really good, year-over-year comparisons.
BUY
One of his favourites. Not cheap at these levels. Other names in a similar space can offer better free cash flow yield. This company offers better growth. Tend to buy value-add properties. Good quality core name. If a long-term investor, 3 to 5 years, this is a Buy.
BUY
Pretty much the only originator in reverse mortgages in Canada. 12.6% yield.
BUY
The only consolidator of self-storage properties in Canada. Had overpaid for some of their assets early on. Rolling out a branding program that will kick in and killed some brand power.
COMMENT
Limited service hotels in Western Canada. Highly exposed to gas drilling so if you are bullish on gas prices this company will be a prime recipient. Stock is about a year behind where it belongs. Over distributing. Should have 100% payout ratio in a year. 16% yield.
DON'T BUY
Retail, office and industrial. Biggest exposure is Regina and Quebec city. Over distributing but have made a good effort to backfill. A “wait and see” story.
DON'T BUY
Has had an awful 2 years. Most of their distribution is “return of capital”. New management team is in place. There are other alternatives giving better cash flow.
BUY ON WEAKNESS
Just reported another tremendous quarter. Great management team and very conservative. Fairly valued. Try to buy at $20. Yield of 6.6%.
HOLD
Primarily an owner of enclosed malls in the secondary market. Also own some unenclosed centres. Good management team.
DON'T BUY
Reported yesterday and missed mainly because of currency exchange. Cut distributions about 30% earlier this year. Questions management’s ability.
COMMENT
Limited service hotels, primarily secondary markets in Western Canada. Huge leverage to gas prices. If you are bullish on gas this company will be a prime recipient. Very cheap. Not earning their distribution on a trailing 12-month basis.
COMMENT
Limited service hotels, primarily in Fort McMurray, which is levered to oil. If you are a long-term bull on oil and the oil sands, this would be a name you would want.
BUY ON WEAKNESS
Primarily multiresidential seniors housing. Pretty solid cash flow. Strong growth potential internally. Free cash flow yield of about 8.5%. Try to get in at around $20 but is cheap at these levels.