Latest Expert Opinions

Signal
Opinion
Expert
COMMENT
COMMENT
October 9, 2019
WeWork is the largest user of Manhattan office space. If that IPO is unsuccessful it could have a major impact on the real estate market there. Who would back-fill the commitments to the space. It is not so much of an impact in Canada however. The multiples applied to WeWork are high.
WeWork is the largest user of Manhattan office space. If that IPO is unsuccessful it could have a major impact on the real estate market there. Who would back-fill the commitments to the space. It is not so much of an impact in Canada however. The multiples applied to WeWork are high.
Joshua Varghese
Portfolio manager, Signature Global Asset Management, CI Investments
Price
$0.000
Owned
_N/A
BUY
BUY
October 9, 2019
The Starlight buy allowed TCN-T to expand apartment rentals in the US to be added to their single-family for rental portfolio of holdings. They were able to issue stock to the Starlight holders at very high values to bring them in -- a very smart strategy. This created a large overhang of shares that could hurt share prices. Recently TCN-T removed the overhang to allow them now to sell those shares unrestricted. Investors on the sidelines appear to have sopped up the surplus. The only reason it was not a Top Pick, is that he was blind sided by the share announcement. His discussions with the management team about the US acquisition is solid, he thinks. He likes the valuation of the company, he thinks it could be worth $13 per share.
The Starlight buy allowed TCN-T to expand apartment rentals in the US to be added to their single-family for rental portfolio of holdings. They were able to issue stock to the Starlight holders at very high values to bring them in -- a very smart strategy. This created a large overhang of shares that could hurt share prices. Recently TCN-T removed the overhang to allow them now to sell those shares unrestricted. Investors on the sidelines appear to have sopped up the surplus. The only reason it was not a Top Pick, is that he was blind sided by the share announcement. His discussions with the management team about the US acquisition is solid, he thinks. He likes the valuation of the company, he thinks it could be worth $13 per share.
Joshua Varghese
Portfolio manager, Signature Global Asset Management, CI Investments
Price
$10.560
Owned
Yes
HOLD
HOLD
October 9, 2019
A small Canadian REIT focusing on US middle market apartments. He likes these specific markets because they less risk around the affordability and the ability to raise rents without regulatory issues. They are trading at a discount to NAV, which confused him why they issued at a discount. Yield 4.4%
BSR REIT (HOM.U-T)
October 9, 2019
A small Canadian REIT focusing on US middle market apartments. He likes these specific markets because they less risk around the affordability and the ability to raise rents without regulatory issues. They are trading at a discount to NAV, which confused him why they issued at a discount. Yield 4.4%
Joshua Varghese
Portfolio manager, Signature Global Asset Management, CI Investments
Price
$11.370
Owned
No
HOLD
HOLD
October 9, 2019
REITs in general have done well and are now fairly valued -- there are no desk pounding deals out there. You want to own them as they prove they hold their value in the late stages of the bull cycle. As we get more into uncertainty in growth, political turmoil and trade wars the income they generate is good. Don't expect a ton of growth, however, due to the required capex. Yield 5.4%
REITs in general have done well and are now fairly valued -- there are no desk pounding deals out there. You want to own them as they prove they hold their value in the late stages of the bull cycle. As we get more into uncertainty in growth, political turmoil and trade wars the income they generate is good. Don't expect a ton of growth, however, due to the required capex. Yield 5.4%
Joshua Varghese
Portfolio manager, Signature Global Asset Management, CI Investments
Price
$26.960
Owned
Unknown
HOLD
HOLD
October 9, 2019
He likes holding this one. Apartments are doing well in the space. He worries if these are being over valued. REIT distribution yeilds need to be re-though. Real Estate is very capital intensive and high distributions may require more debt and more equity to get raised to pay them. He prefers a lower yield and low payout ratios. This REIT has done things well, with a low distribution yield that is allowing free cash flow to grow at 18%. He prefers owning apartment REITs versus owning a condo. Yield 1.8%
He likes holding this one. Apartments are doing well in the space. He worries if these are being over valued. REIT distribution yeilds need to be re-though. Real Estate is very capital intensive and high distributions may require more debt and more equity to get raised to pay them. He prefers a lower yield and low payout ratios. This REIT has done things well, with a low distribution yield that is allowing free cash flow to grow at 18%. He prefers owning apartment REITs versus owning a condo. Yield 1.8%
Joshua Varghese
Portfolio manager, Signature Global Asset Management, CI Investments
Price
$16.430
Owned
Yes
BUY
BUY
October 9, 2019
The business of realty income is good. They buy big portfolios of real estate and have the low cost of equity to allow them to make acquisitions. They often offer sale lease-backs to the owners of the assets they buy. You would not be hurt to buy it even here.
Realty Income Corp (O-N)
October 9, 2019
The business of realty income is good. They buy big portfolios of real estate and have the low cost of equity to allow them to make acquisitions. They often offer sale lease-backs to the owners of the assets they buy. You would not be hurt to buy it even here.
Joshua Varghese
Portfolio manager, Signature Global Asset Management, CI Investments
Price
$78.290
Owned
Unknown
PAST TOP PICK
PAST TOP PICK
October 9, 2019
(A Top Pick Aug 16/18, Up 21%) If you want to own one international real estate holding -- this is it. They continue to raise lots of capital and have an army to deploy it. They charge fees to management assets and fees on the profits. The bigger the pool of assets, the bigger the fees they collect. Their inside owners interests are well aligned with investors. If markets do drop, they are best positioned to take advantage of opportunities. There could be some risk that regulations that come into the private equity market, but he is not too concerned it would impact their fees.
(A Top Pick Aug 16/18, Up 21%) If you want to own one international real estate holding -- this is it. They continue to raise lots of capital and have an army to deploy it. They charge fees to management assets and fees on the profits. The bigger the pool of assets, the bigger the fees they collect. Their inside owners interests are well aligned with investors. If markets do drop, they are best positioned to take advantage of opportunities. There could be some risk that regulations that come into the private equity market, but he is not too concerned it would impact their fees.
Joshua Varghese
Portfolio manager, Signature Global Asset Management, CI Investments
Price
$68.950
Owned
Yes