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He is a large shareholder. Trading at about 11% discount to NAV. A great name to hold, but his concern is the Western Canadian exposure. It looks like in-place rents are about 5% higher than market rents in Western Canada, and that is getting offset by some strength in Eastern Canada, so he feels that everything on balance is okay. If looking for a name that is a little bit cheaper in the industrial sector, you could look at Dream Industrial (DIR.UN-T), which is trading at about a 25% discount to NAV and also cheaper on other metrics. However, it is externally managed and does have a little more Western Canadian exposure, but that is fully reflected in the share price. He still holds Pure Industrial and thinks it is fine.
He is a large shareholder. Trading at about 11% discount to NAV. A great name to hold, but his concern is the Western Canadian exposure. It looks like in-place rents are about 5% higher than market rents in Western Canada, and that is getting offset by some strength in Eastern Canada, so he feels that everything on balance is okay. If looking for a name that is a little bit cheaper in the industrial sector, you could look at Dream Industrial (DIR.UN-T), which is trading at about a 25% discount to NAV and also cheaper on other metrics. However, it is externally managed and does have a little more Western Canadian exposure, but that is fully reflected in the share price. He still holds Pure Industrial and thinks it is fine.
Sold his holdings. Was getting a little concerned in the 4th quarter last year that auto sales had peaked and OEMs were going to be snapping back at some of the auto parts manufacturers to try to get some price concessions, and in a rising rate environment it could put a bit of pressure on auto sales. Some of those things have come to fruition, however the precipitous decline in these shares represents a good buying opportunity. He is looking to re-enter the stock. Great balance sheet and a very attractive valuation, trading at about 3.5X EBITDA, which is near the low end of the range.
Sold his holdings. Was getting a little concerned in the 4th quarter last year that auto sales had peaked and OEMs were going to be snapping back at some of the auto parts manufacturers to try to get some price concessions, and in a rising rate environment it could put a bit of pressure on auto sales. Some of those things have come to fruition, however the precipitous decline in these shares represents a good buying opportunity. He is looking to re-enter the stock. Great balance sheet and a very attractive valuation, trading at about 3.5X EBITDA, which is near the low end of the range.
Has been a controversial name. A report came out alleging they had overpaid for some acquisitions and were going to lose some customers and face some pricing pressures. Ever since that came out, it has been in the penalty box. Management has reasserted that fundamentally the business is okay, pricing is fine and they are not losing any customers. Before Buying wait until they report on Feb 23rd. Longer-term, this is a stock that could be worth upwards of $40.
Has been a controversial name. A report came out alleging they had overpaid for some acquisitions and were going to lose some customers and face some pricing pressures. Ever since that came out, it has been in the penalty box. Management has reasserted that fundamentally the business is okay, pricing is fine and they are not losing any customers. Before Buying wait until they report on Feb 23rd. Longer-term, this is a stock that could be worth upwards of $40.
When this IPO’d, it was primarily dependent on Magna (MG-T) accounting for well over 90% of its net operating income. Management’s objective was to reduce Magna’s exposure to less than 50% NOI within 3 years by making additional acquisitions by using their under leveraged balance sheet. Management has not done that in a very aggressive way, so debt to growth BV, it is still very under leveraged, less than 30%. They have a lot of balance sheet capacity to facilitate additional acquisitions. They haven’t done anything, which is unfortunate because in the interim the value of industrial properties has gone up and interest rates have fallen. They missed out, which is why you are seeing the stock languish. They did undertake a strategic review. The CEO left, so there is new management. Feels the dividend is sustainable.
When this IPO’d, it was primarily dependent on Magna (MG-T) accounting for well over 90% of its net operating income. Management’s objective was to reduce Magna’s exposure to less than 50% NOI within 3 years by making additional acquisitions by using their under leveraged balance sheet. Management has not done that in a very aggressive way, so debt to growth BV, it is still very under leveraged, less than 30%. They have a lot of balance sheet capacity to facilitate additional acquisitions. They haven’t done anything, which is unfortunate because in the interim the value of industrial properties has gone up and interest rates have fallen. They missed out, which is why you are seeing the stock languish. They did undertake a strategic review. The CEO left, so there is new management. Feels the dividend is sustainable.
Likes the stock at this level. Relative value compared to the S&P 500 usually trades at a premium, and that has since come in quite substantially. This is a great entry point. If you normalize for the synergies that they can get from the Rite Aid acquisition and the Alliance Boots acquisition, you are looking a pro forma earnings upwards of $7 per share they could realize a couple of years out. This is a stock that typically traded in the range of 15-20X earnings, so there is a lot of upside potential. You could buy Rite Aid (RAD-N), which would be a lower risk way to get a little bit of upside into your broader portfolio.
Likes the stock at this level. Relative value compared to the S&P 500 usually trades at a premium, and that has since come in quite substantially. This is a great entry point. If you normalize for the synergies that they can get from the Rite Aid acquisition and the Alliance Boots acquisition, you are looking a pro forma earnings upwards of $7 per share they could realize a couple of years out. This is a stock that typically traded in the range of 15-20X earnings, so there is a lot of upside potential. You could buy Rite Aid (RAD-N), which would be a lower risk way to get a little bit of upside into your broader portfolio.
The largest owner of medical office buildings in Canada with some exposure in Brazil, New Zealand and Germany. Because it is so diverse it is tough for investors to get a handle on what is happening in each of those different markets, especially if you consider what is going on in Brazil. He has some underlying concerns about the health in some of those markets. Has a relatively high payout ratio that is going to have to rely on acquisitions to facilitate growth. In this market, where most REITs are trading at a substantial discount to NAV, it is going to be much harder to realize non-organic growth. Prefers others.
The largest owner of medical office buildings in Canada with some exposure in Brazil, New Zealand and Germany. Because it is so diverse it is tough for investors to get a handle on what is happening in each of those different markets, especially if you consider what is going on in Brazil. He has some underlying concerns about the health in some of those markets. Has a relatively high payout ratio that is going to have to rely on acquisitions to facilitate growth. In this market, where most REITs are trading at a substantial discount to NAV, it is going to be much harder to realize non-organic growth. Prefers others.
He is a big shareholder in this. One of the best performing Canadian REITs year to date, primarily because it is Eastern Canadian focused, and is low income housing. In an environment where there is economic uncertainty, and you are worried about the health of the economy or the consumer in aggregate, there should be more demand for low income Housing. An interesting switch would be to consider going into Boardwalk (BEI.UN-T) instead, because he thinks they will benefit as oil prices recover.
He is a big shareholder in this. One of the best performing Canadian REITs year to date, primarily because it is Eastern Canadian focused, and is low income housing. In an environment where there is economic uncertainty, and you are worried about the health of the economy or the consumer in aggregate, there should be more demand for low income Housing. An interesting switch would be to consider going into Boardwalk (BEI.UN-T) instead, because he thinks they will benefit as oil prices recover.
