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He is a large shareholder and continues to like it. It has been negatively impacted by the threat of rising rates. It has a tremendous power generation portfolio. A lot of their assets will deliver tremendous growth. They have 20 plus year power purchase agreements. You will continue to see income growth. The sell off is from commodity pries and represents 20% of their business so represents a buying opportunity. It has an attractive yield.
It is a decent name if you own it. It is tough to switch out of it. He has preferred names including a top pick today. Management promised to diversify the portfolio and they did a good job of that. The payout ratio is high so this is why he is cautious on it. There are risks in the devaluation of the Euro. He does not think they will have to cut the dividend.
They own garden style apartments in the US. There is a difference in the US in that the turnover is a lot higher. In a given year they have about 60% turnover. The apartment sector is highly coveted by pension funds. This one should do particularly well while rents are lower than the cost of ownership.
He continues to like it. They have a great backlog of projects. They can drive cash flow and dividend growth. They benefitted tremendously in the last couple of years from increases in production. There is not a lot of commodity exposure. Investors need to get more comfortable with the cap-x plans that these companies have. Their ability to service their debt is very good.
It is a name that has been challenging because of the western Canada exposure. They are divesting out of some of Western Canada and going into the US. He’d hang on to it. The payout ratio is about 90% but he does not think things can get worse in western Canada. They are focused on more suburban markets.
It is a good value pick. The yield is sustainable. It is a diversified portfolio. They have office space in Canada and the US. They have apartments in the US now. They have debt equating to 10 years. Higher rates should not affect them much. Only about 10% of their debt is up for renewal in any particular year.
It has been under pressure over the last year. They have a really good HIV and HEP-C franchise. The pressure is because they cure HEP-C so you take demand out of the market. The cash on their balance sheet should allow them to buy something to create growth in the company. That is why you would hold on to it. He has a small position. You could increase holding if it pulls back further.
It has been caught up in the health care sector decline. Now they are less worried about regulation. But they don’t have a lot of branded drugs that are high priced. He owns some of the TEVA-N debt. He thinks it is a pretty good entry point here even if the chart does not look that good.
It is the real estate arm of L-T. The parent owns about 80% of the REIT. This is L-T with less volatility and a higher yield. It is a high quality REIT. The problem at the time of the IPO was the agreements with L-T that limited rent increases. He does not know about the properties that Shoppers is on.
Markets. It has been an interesting couple of months. It is difficult to translate a Trump victory into investment strategy. Some of the run in certain stocks have been impacted by policy reform and it is probably over done. Changed policies will not get implemented until third or fourth quarter of 2017. You should own companies that will work regardless of the outcome of policy reform in the US. He has a bias to Canada but has exposure to other parts of the world. The cost of capital in Canada will go up as a result of many rate increases in the US. These rate increases will impact interest sensitive sectors. Not all of a REIT’s debt gets refinanced in any given year. This insulates them from the full impact of rate increases.