DON'T BUY

As a proxy for a REIT? This story has been the market for some time. It is part of the wave of unearthing real estate value, and feels the trend is kind of over.

COMMENT

A little gem. A small-cap REIT in secondary markets, but is developing constantly. Without continually issuing equity, they have been able to increase NAV per share over time. The dividend is very safe. Management owns a ton of stock. One of his favourites. Has been underperforming lately, but its time will come.

COMMENT

A stock with a lot of Alberta exposure, but also has a strong US portfolio. Thinks the market will continue to punish Alberta names for some time. However, the income is safe and they have managed quite well through the different cycles.

SELL

(Market Call Minute.) This is tertiary markets with some development risks.

HOLD

(Market Call Minute.) Externally managed, which he doesn’t like, but he likes the markets that it is in, strip centre retail in the US.

PARTIAL SELL

(Market Call Minute.) Great company, but too expensive. If you own, he would trim.

BUY

(Market Call Minute.) This has industrial exposure across Canada. Look for some weakness in Alberta, but that will be balanced off by Ontario strength.

BUY

(Market Call Minute.) This gives you exposure to the seniors’ sector.

TOP PICK

Thinks this is the time to start owning large caps. He expects a softer year. Sold all of its US portfolio, so loses that income. It is putting that money toward some excellent developments, but they still have to build them before earning cash flow. A fantastic organization with a lot of growth opportunities going forward. Dividend yield of 5.19%.

TOP PICK

One of the few REITs where he could sell every single building today if he wanted to. The kind of security that investors should be thinking of, when looking at houses trading relative to NAV. There are so many people around the world who would love to own a stable, Ontario focused apartment portfolio. Dividend yield of 4.05%.

TOP PICK

This is typically Sobey’s anchored, Eastern Canadian. Now with the Safeway transaction, they’re also in Western Canada and have said they are going to develop and maintain this. Their last quarter was excellent. Dividend yield of 6.31%.

N/A

Markets. Thinks we are probably worrying too much, but when people stop worrying, that is when you want to sell everything. We have seen Short Sell positions go up, cash positions go up, a lot of worry about China, US elections, healthcare, etc., etc. On the big picture earnings are okay. They are probably going to go down in the US this year, but the market has already adjusted. Dividends are increasing. We are seeing privatization and takeovers. It really is not that bad. If you can get 3% in a dividend stock, that has the potential to grow and grow its dividend, why get 0.5% in a GIC. He is not convinced that this rally is for real.

RISKY

This hardly trades at all. Insiders own a very big chunk of it, about 75%. They own ice rinks and an adult hockey league. Revenue has been mostly flat for the past 5 years. There is about $45 million in net debt on a $50-$60 million market cap company. Pays a 2% dividend.

COMMENT

This went to sleep for about 3 years. Volumes had declined and costs went up. It was a situation where you couldn’t see any growth. Suddenly they turned this around over the past 3 quarters. The last quarter was quite good. Volumes went up and costs went down giving a double impact of better margins with higher volumes. There are some risks because it is cyclical. 6.57% dividend yield which is sustainable. For an income stock it is pretty solid. He wouldn’t expect the same kind of gains that we have had over the past 6-9 months, but a decent little company.

COMMENT

Added this to his growth portfolio about a month ago. The company is involved in technology with movie theatres. It has taken them a very long time to get penetration into the theatre market. Growing fast and has a good niche.