Latest Expert Opinions

Signal
Opinion
Expert
COMMENT
COMMENT
August 2, 2013

Brand new IPO that was spun out of Loblaw’s to hold the majority of their real estate. Better quality real estate than he anticipated, the payout ratio was excellent and the leverage was very low. Experienced management which he likes. Didn’t like some of the aspects of the strategic alliance agreement between Loblaw’s and this company. It limited some of their ability to create value and growth one forward. Also, in a rising interest rate environment, they are only going to generate 1.5% growth 5 years out from now.

Brand new IPO that was spun out of Loblaw’s to hold the majority of their real estate. Better quality real estate than he anticipated, the payout ratio was excellent and the leverage was very low. Experienced management which he likes. Didn’t like some of the aspects of the strategic alliance agreement between Loblaw’s and this company. It limited some of their ability to create value and growth one forward. Also, in a rising interest rate environment, they are only going to generate 1.5% growth 5 years out from now.

Dennis Mitchell, CFA
Executive Vice-President & Chief Investment Office, Sentry Select Capital Corp
Price
$10.250
Owned
No
BUY
BUY
August 2, 2013

Leisure World (LW-T) or Chartwell (CSH.UN-T)? Prefers Chartwell. Has significant turnaround. B leveraging, simplifying the business model, new management. 5.5% dividend yield is safe. Worth $10.50-$11.

Leisure World (LW-T) or Chartwell (CSH.UN-T)? Prefers Chartwell. Has significant turnaround. B leveraging, simplifying the business model, new management. 5.5% dividend yield is safe. Worth $10.50-$11.

Dennis Mitchell, CFA
Executive Vice-President & Chief Investment Office, Sentry Select Capital Corp
Price
$9.740
Owned
Yes
DON'T BUY
DON'T BUY
August 2, 2013

Leisure World (LW-T) or Chartwell (CSH.UN-T)? Doesn’t own because it is long-term care and long-term care has next to no growth in the cash flow stream. Assets are in Ontario and BC. Have to do a significant amount of redevelopment in roughly half their portfolio in the next few years, which is all CapX with no general upside. Have to redevelop these assets to an A or B quality standard.

Leisure World (LW-T) or Chartwell (CSH.UN-T)? Doesn’t own because it is long-term care and long-term care has next to no growth in the cash flow stream. Assets are in Ontario and BC. Have to do a significant amount of redevelopment in roughly half their portfolio in the next few years, which is all CapX with no general upside. Have to redevelop these assets to an A or B quality standard.

Dennis Mitchell, CFA
Executive Vice-President & Chief Investment Office, Sentry Select Capital Corp
Price
$12.530
Owned
No
WEAK BUY
WEAK BUY
August 2, 2013

Got some of this when it was spun out of Dundee REIT (D.UN-T), a pure office REIT. This is pure industrial. If you are expecting weak economic growth, industrial real estate tends to not be the best performing asset class. More exposed to export, particularly in Ontario with the auto market. Thinks you can get in and realize some value here.

Got some of this when it was spun out of Dundee REIT (D.UN-T), a pure office REIT. This is pure industrial. If you are expecting weak economic growth, industrial real estate tends to not be the best performing asset class. More exposed to export, particularly in Ontario with the auto market. Thinks you can get in and realize some value here.

Dennis Mitchell, CFA
Executive Vice-President & Chief Investment Office, Sentry Select Capital Corp
Price
$8.490
Owned
Yes
STRONG BUY
STRONG BUY
August 2, 2013

A global tower company. Has owned for quite some time and is very happy with it. A little disappointed on their global side. Unhedged and the US$ has strengthened while foreign currencies have weakened. However, a strong US$ is probably good for them right now as they are investing outside of the US and into these countries and able to buy assets at a discount. Stock has dropped because a report came out that undermined several of the founding tenants of this company. Most of the report was factually incorrect and blatantly inflammatory. You are getting a great return if you can buy in the low $70s. 1.5% dividend yield is going to grow at about 10%-12% a year.

American Tower (AMT-N)
August 2, 2013

A global tower company. Has owned for quite some time and is very happy with it. A little disappointed on their global side. Unhedged and the US$ has strengthened while foreign currencies have weakened. However, a strong US$ is probably good for them right now as they are investing outside of the US and into these countries and able to buy assets at a discount. Stock has dropped because a report came out that undermined several of the founding tenants of this company. Most of the report was factually incorrect and blatantly inflammatory. You are getting a great return if you can buy in the low $70s. 1.5% dividend yield is going to grow at about 10%-12% a year.

Dennis Mitchell, CFA
Executive Vice-President & Chief Investment Office, Sentry Select Capital Corp
Price
$70.500
Owned
Yes
BUY
BUY
August 2, 2013

Very good name. Multi-residential. Some of the issues that have crept up recently is diversification initiatives that management has implemented. Bought some US assets and entered into long-term management agreements and there is speculation that they bought some assets in Ireland. All in all, the portfolio is rock solid. Have made tremendous progress in the last 5 years by bringing the payout ratio down and improving the quality of the assets and diversifying the portfolio. Probably worth $26-$27.

Very good name. Multi-residential. Some of the issues that have crept up recently is diversification initiatives that management has implemented. Bought some US assets and entered into long-term management agreements and there is speculation that they bought some assets in Ireland. All in all, the portfolio is rock solid. Have made tremendous progress in the last 5 years by bringing the payout ratio down and improving the quality of the assets and diversifying the portfolio. Probably worth $26-$27.

Dennis Mitchell, CFA
Executive Vice-President & Chief Investment Office, Sentry Select Capital Corp
Price
$20.990
Owned
Yes
HOLD
HOLD
August 2, 2013

Growth in this company is going to slow a little. A lot of their growth has been through acquiring facilities, developing facilities and acquiring larger stakes in facilities they already own. This is going to slow down a little but they will continue to grow. Good management. Trading at or just below NAV. Dividend is safe and you can expect modest growth going forward. If you are willing to accept a little volatility than you could step into this. 4.9% dividend yield is safe.

Growth in this company is going to slow a little. A lot of their growth has been through acquiring facilities, developing facilities and acquiring larger stakes in facilities they already own. This is going to slow down a little but they will continue to grow. Good management. Trading at or just below NAV. Dividend is safe and you can expect modest growth going forward. If you are willing to accept a little volatility than you could step into this. 4.9% dividend yield is safe.

Dennis Mitchell, CFA
Executive Vice-President & Chief Investment Office, Sentry Select Capital Corp
Price
$8.650
Owned
Yes