Latest Stock Buy or Sell? Make More Informed Decisions!
Today, Derek Warren commented about whether BPY.UN-T, CRR.UN-T, HR.UN-T, AAR.UN-T, SRT.UN-T, DIR.UN-T, BTB.UN-T, INN.UN-T, BBU.UN-T, CHP.UN-T, NWH.UN-T, GRT.UN-T, MST.UN-T, CAR.UN-T, INO.UN-T, REI.UN-T, D.UN-T, O-N, WPG-N, SRU.UN-T, AP.UN-T, TCN-T, DRG.UN-T, SOT.UN-T, EXE-T, CUF.UN-T are stocks to buy or sell.
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Doesn’t own this as he was a little disappointed with the growth pattern it had. The nice thing, if you have a long-term view, is that its yield is about 8.5%. Cheap on a historical basis, trading at around 11X earnings. If you believe the Québec economy is going to pick up, this could work out very well.
Artis Reset Preferreds? He doesn’t use preferred shares, because they are very illiquid instruments. If looking for an income source, they do have a pretty steady yield. This company’s has been down in the dumps because of its Alberta exposure. He thinks you are fine on this. You just have to be comfortable with the outlook going forward, that really isn’t great.
Senior Housing. There is a lot of concern, in Ontario especially, on how governments are handling seniors housing going forward. There is a recent report of reducing levels of inspection, and not releasing information, which is all a little bit worrisome. This company seems to be on the entry level, so he prefers others, such as Chartwell (CSH.UN-T) that are on the upper level of quality care. However, there is still a need for entry level care, which this company provides. The stock is cheap and has underperformed its peers.
He likes the Slate team which are doing a lot of really interesting things across the board. This is more secondary office, suburban office buildings. It will be an interesting vehicle in the future, but we are not there yet, as he expects more pressure of people leaving older buildings in the suburbs and coming towards downtown cores. There will be a rebound at some point, and that is what they are going to profit from. These guys are masters at repositioning, and he is looking for them to dip their toes into Calgary, while it is cheap, and that is when you really want to take advantage of this REIT.
Does BREXIT affect this? Yes. Temporarily you are no longer allowed to withdraw money from your real estate property fund in the UK, which is why you should own a REIT fund. This REIT offers exposure to the German market. There are a lot of moving pieces. You have to assume that a lot of businesses are going to leave London and going to go to Germany, probably Frankfurt. This has about 15% real estate in Frankfurt, but they are 95% occupied. Plus, there is going to be a 2-3 year lag. All this sounds good in theory, but you are planning for something that is 3 years out. This is overpaying on its distribution which is something he is not crazy about.
He really likes this and has been adding any time it has touched $8.25. A really interesting play on the US housing market, covering the different facets such as homebuilding, mature lifestyle communities, luxury housing, single-family renting. This is a market that has been depressed for some time. It is starting to come up, but the stocks are not reacting yet. Thinks it is priming up for a pop, and the stock could be an easy $10. Dividend yield of 3%.
(A Top Pick June 23/15. Up 38.13 %.) A portfolio of Wal-Mart (WMT-N) anchored strip centres. Very value focused and very stable. At the same time, you have a world class development team. Having both stability and growth in one vehicle, makes it very attractive. A lot is priced in now, but he still likes it. Trading at about 20% above consensus NAV, which is normally his area, but he is taking a bit of an extra positive look, and it is still offering an attractive level, so is hanging on for now.
(A Top Pick June 23/15. Down 5.43%.) As a value investor, he buys discounted names. Bought this at a 30% discount to the value of the properties, and it then went to a 50% discount, so he added more. Comparing it to Simon Properties (SPG-N), the finest mall REIT in the US, which trades at 22X earnings, this one is trading at 8X. Cheap by every single metric. There have been some recent changes in the executive suite with the CEO leaving in a huff, along with rumours that the company is for sale, and it is 30%-40% below analysts’ NAV, so he thinks there is a really good chance here.
Triple-net, meaning that they buy a building that is occupied and owned by the tenants, in exchange for a long-term lease. A very low risk, but very bond-like. They’ve been doing well recently with the collapse in interest rates. However, when interest rates reverse you don’t want to own this. Considering that this and bonds in general have had a great run, this is probably not the time to be buying.
A Canadian office REIT with a lot of Calgary exposure. Recently announced that they are doing a transition in the company, and immediately want to sell one 3rd of their portfolio, doing a CapX and then selling another 3rd, and only maintaining a 3rd of their properties. That is a lot of moving pieces and he doesn’t know what the value of their properties actually is.
Has had a good little run lately and has done quite well. People tend to gravitate towards the largest names and this is the largest name in Canada. There is a lot of speculation that they are going to be added to the TSX 60 sometime in the next 2 years. If so, they could spike and then fall, and that is what he is concerned about. Fundamentals are OK. Retail has been under a fair amount of pressure. A fantastic management team. Very low debt.
A small company, all France and a little bit of Germany. A very interesting way to play if you think office tenants will be leaving London and going over to Paris. They do have a larger asset manager behind them. He likes management and the properties. If you believe that something is going to happen and that Paris will benefit from BREXIT, then yes this is the name. He is a little concerned about the French economy.
To buy this, you might not get the dips that you need. Sometimes you just draw a line in the sand and then you miss it. This is a great company with great prospects going forward. Affordable housing. There is nothing more attainable than renting a quality apartment. He likes the prospects long-term.
REITs. REITs have really gone up, but you have to remember that they started really, really cheap. A lot of this has just been a recovery back to proper pricing. There has been a lot more interest coming into the space. People are getting comfortable with a lower for longer notion, along with all the good and bad that that implies. When interest rates go up, that will affect REITs, but it doesn’t look like that is going to happen anytime soon. Real estate really shouldn’t be about catching swings and cycles. Real investors should just focus on buying quality companies and collecting the income stream. If you are planning on making a big move into REITs, just put part of the money in now, there is always a pullback. Real estate is currently under the Financial sector, but at the end of August will become its own real estate sector (GICS). It will have its own label, but no more volume will be created. Just moving from the left-hand to the right-hand, but is creating interest as maybe people didn’t own any because it was hidden under banks, financials and insurance companies. The large caps are getting expensive, but mid-cap’s and smaller caps are still showing some good value.