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Markets. 2014 has been much better than 2013, when the market was focused on tapering. In 2014 fundamentals remain strong, occupancy and returns remain strong. Interest rates were supposed to go higher in 2014, but they pulled back which was good for REITs. This year any rise in rates won’t be a surprise. People try to direct you to economically sensitive lodging because they can grow cash flow rapidly, but all he looks for is free cash flow above average. Investors should be cautious. Returns will be more normalized for the balance of the year. The sector is no longer undervalued, but rather it is fairly valued. He doesn’t see the sector going lower.

Similar to Tricon, but more diversified. AMH-T is focused on buying single family homes and renting them. 20-25 different cities and are a strong operator. They have to maintain and lease single family homes all over the city. Believes they will be a consolidator as home prices have appreciated in the US. There is an opportunity to build a business based on this through acquisition. The industry is fragmented, but can consolidate over time.

Diversified REIT that invests in office, industrial and retail. Management team is focused on reducing leverage and payout ratio. 50% leverage right now. Going forward the key is to make sure they have a laddered maturity profile for their debt. They should be just fine.

Owner/operator/ developer of apartments. One of the keys for them is to drive rental growth and manage operating costs. The high price of gas in the Atlantic provinces has been their problem and how it hit operating expenses. Trading at a substantial discount to their NAV. People are worried that a ship building contract through the government will not be as beneficial to KMP as previously thought.

Owned for some time. Announced they were going into home building. Is an asset management company turning into a play on US housing and recovery. He reduced his position because he feels returns will slow. A solid management team that are well aligned.

Done a very good job and focused on balance sheet and payout ratio, reducing it to 80% last year. You may not see a distribution increase this year as they use cash on the balance sheet for growth. They have projects on the go that will contribute to free cash flow. Anyone owning seniors residences could be in play as a result of changes in the US.

Retail REIT and majority of assets are leased to Wal-Mart. Saw 5% funds from operations growth last quarter.

Owns and operates high quality retirement properties in Canada. It has not done well. There was some development land that was to be sold and add liquidity to the company, but that did not happen. He has confidence in the management.

(Top Pick July 9/13, Up 12.67%) They spun off some of their lower quality assets so the remaining portfolio will be very powerful in terms of sales per square foot. They now provide exposure to higher end consumers. 5% free cash flow growth going into 2015.

(Top Pick July 9/13, Up 12.65%) Has traded at a premium historically because of low leverage and payout ratio. This is a core holding in his portfolio.

(Top Pick July 9/13, Up 12.55%) Largest REIT in Canada. Done a good job of using capital markets to lower leverage and payout ratio. They are going to focus on urban assets that they can develop apartment buildings on. This is uncommon for retail landlords.

Focused on health care properties across Canada as well as medical office buildings. One of their focuses has been increasing occupancy to 93% but it stayed at 91%. This is a risk in specialized office space. They are facing difficulties in leasing at some of their properties. The sentiment in the office market is poor so people are avoiding this one.

Dream REITs are not knew, just renamed. In 2016/17 is when a lot more supply comes on and is only 50% pre-leased. He continues to own it because it trades below NAV, leverage has lowered over the last few years and the distribution is stable.

Has an external management structure. Invests 100% in Germany. German post office is only 30% of their portfolio now. It is going to be somewhat difficult to replicate what they did over the last couple of years. The payout ratio is currently above 100%.

Work with REI.UN-T in a JV. The largest landlord for shopping centers in the US. Their focus over the last few years has been shedding non-core assets. They are 60-70% of the way through simplifying their business. Demand for their properties is starting to pick up. Is turning into a very high quality business.