Latest Expert Opinions

Signal
Opinion
Expert
COMMENT
COMMENT
July 9, 2019
Closing stores should be part of their strategy. There needs to be more definitive action by the management team. Management understands how expensive it is becoming to run a traditional retail operation. Digital and e-commerce products are making it very competitive to run a business. The real estate they possess is very valuable and it may be put to better use than retail. The deal being offered to HBC-T is very low at just $9.45 per share -- the real estate is worth $30 per share alone not including the value of their inventory. He thinks the minority shareholders will feel the offer is far to low as well.
Closing stores should be part of their strategy. There needs to be more definitive action by the management team. Management understands how expensive it is becoming to run a traditional retail operation. Digital and e-commerce products are making it very competitive to run a business. The real estate they possess is very valuable and it may be put to better use than retail. The deal being offered to HBC-T is very low at just $9.45 per share -- the real estate is worth $30 per share alone not including the value of their inventory. He thinks the minority shareholders will feel the offer is far to low as well.
Joshua Varghese
Portfolio manager, Signature Global Asset Management, CI Investments
Price
$9.890
Owned
Yes
DON'T BUY
DON'T BUY
July 9, 2019

A small Canadian office focused REIT in North America managed by the Slate Group. They announced a big distribution cut to re-invest the money into the portfolio. He thinks this is a chronic issue in the space and thinks they did the right thing. From here the downside is relatively protected. The discount to NAV can close in the next two years, but he is not sure what the catalyst would be. He would stay on the sidelines.

A small Canadian office focused REIT in North America managed by the Slate Group. They announced a big distribution cut to re-invest the money into the portfolio. He thinks this is a chronic issue in the space and thinks they did the right thing. From here the downside is relatively protected. The discount to NAV can close in the next two years, but he is not sure what the catalyst would be. He would stay on the sidelines.

Joshua Varghese
Portfolio manager, Signature Global Asset Management, CI Investments
Price
$5.900
Owned
No
HOLD
HOLD
July 9, 2019
Entry into Montreal? The management team is one of the best out there. They buy undervalued properties and get big uplifts. They have perfected in Ottawa and the GTO. Montreal is not a new market to them. Overall the residential market space is well favoured. The tech industry has spawned in Toronto and it is spreading across the country. There is a shortage of good quality housing across the country. The yield just above 3%, but you are really buying this for their growth opportunities.
Entry into Montreal? The management team is one of the best out there. They buy undervalued properties and get big uplifts. They have perfected in Ottawa and the GTO. Montreal is not a new market to them. Overall the residential market space is well favoured. The tech industry has spawned in Toronto and it is spreading across the country. There is a shortage of good quality housing across the country. The yield just above 3%, but you are really buying this for their growth opportunities.
Joshua Varghese
Portfolio manager, Signature Global Asset Management, CI Investments
Price
$14.150
Owned
Unknown
HOLD
HOLD
July 9, 2019
Competing against Costco & Walmart? Associated with Sobey's. The competition has been there for a while. Sobey's has been developing good partnerships including into delivery. The pressure that has come to retail outlets is coming to groceries as well. You will see stores to optimize space. Sobey's is already looking into this, he feels. Crombie owns the right real estate in the right markets and they have a good redevelopment plan. He would continue to hold.
Competing against Costco & Walmart? Associated with Sobey's. The competition has been there for a while. Sobey's has been developing good partnerships including into delivery. The pressure that has come to retail outlets is coming to groceries as well. You will see stores to optimize space. Sobey's is already looking into this, he feels. Crombie owns the right real estate in the right markets and they have a good redevelopment plan. He would continue to hold.
Joshua Varghese
Portfolio manager, Signature Global Asset Management, CI Investments
Price
$15.510
Owned
Unknown
COMMENT
COMMENT
July 9, 2019

In isolation BPY.UN-T is a great name. It trades at a large discount to NAV and pays a yield of 6%. He looks at other real estate stocks and he would favour owning the parent BAM-N. He prefers the parent as they collect fees from all the other entities. Now is a good time to own BPY.UN-T due to the discount to NAV and this lower interest rate environment. He would be cautious that they do hold a lot of retail shopping centres, which may require capital investment in the future.

In isolation BPY.UN-T is a great name. It trades at a large discount to NAV and pays a yield of 6%. He looks at other real estate stocks and he would favour owning the parent BAM-N. He prefers the parent as they collect fees from all the other entities. Now is a good time to own BPY.UN-T due to the discount to NAV and this lower interest rate environment. He would be cautious that they do hold a lot of retail shopping centres, which may require capital investment in the future.

Joshua Varghese
Portfolio manager, Signature Global Asset Management, CI Investments
Price
$25.400
Owned
Unknown
COMMENT
COMMENT
July 9, 2019

In isolation BPY.UN-T is a great name. It trades at a large discount to NAV and pays a yield of 6%. He looks at other real estate stocks and he would favour owning the parent BAM-N. He prefers the parent as they collect fees from all the other entities. Now is a good time to own BPY.UN-T due to the discount to NAV and this lower interest rate environment. He would be cautious that they do hold a lot of retail shopping centres, which may require capital investment in the future.

In isolation BPY.UN-T is a great name. It trades at a large discount to NAV and pays a yield of 6%. He looks at other real estate stocks and he would favour owning the parent BAM-N. He prefers the parent as they collect fees from all the other entities. Now is a good time to own BPY.UN-T due to the discount to NAV and this lower interest rate environment. He would be cautious that they do hold a lot of retail shopping centres, which may require capital investment in the future.

Joshua Varghese
Portfolio manager, Signature Global Asset Management, CI Investments
Price
$48.570
Owned
Unknown
COMMENT
COMMENT
July 9, 2019
Warehouse REITs? Industrial and warehouse assets have become a buzz phrase. Storing assets closer to retail consumers is a real thing. This requires companies to revamp their entire supply chain and warehousing is critical and it only represents about 5% of a retail cost -- it is still pretty cheap. He would favour PLD-N in the US. It is a little expensive right now. He likes them because they are exploring their own business model to help companies get better value for their space. Overtime this will lead to a better revenue stream for them.
Prologis (PLD-N)
July 9, 2019
Warehouse REITs? Industrial and warehouse assets have become a buzz phrase. Storing assets closer to retail consumers is a real thing. This requires companies to revamp their entire supply chain and warehousing is critical and it only represents about 5% of a retail cost -- it is still pretty cheap. He would favour PLD-N in the US. It is a little expensive right now. He likes them because they are exploring their own business model to help companies get better value for their space. Overtime this will lead to a better revenue stream for them.
Joshua Varghese
Portfolio manager, Signature Global Asset Management, CI Investments
Price
$82.620
Owned
Unknown