Advertising
BUY on WEAKNESS
If you want good global REIT exposure own PLD-N. WIR.U-T raised equity and this has resulted in a share drop today. This is not a high conviction name -- you don't have to own it. We have gone through the most bullish industrial run up over the past few years and we have not seen their cash flows really increase. He is starting to see supply of industrial space increasing and some of their leases expiring soon -- this could challenge their cash flow going forward. He would buy on a pullback.
investment companies / funds
BUY on WEAKNESS
If you want good global REIT exposure own PLD-N. WIR.U-T raised equity and this has resulted in a share drop today. This is not a high conviction name -- you don't have to own it. We have gone through the most bullish industrial run up over the past few years and we have not seen their cash flows really increase. He is starting to see supply of industrial space increasing and some of their leases expiring soon -- this could challenge their cash flow going forward. He would buy on a pullback.
0
HOLD
The biggest apartment REIT in Canada. A good, liquid way to play the fundamentals in this space. Global analysts see the GTA of Ontario a great market area, right up there with India. He wonders what their rental rate growth might be going forward. A good name to hold.
investment companies / funds
TOP PICK
The spin off MGM Resorts -- the casino operator. The properties are leased back to the casino operator. The lease is low cost to the REIT. A strong business set up for the macro risks out there. A relatively new REIT structure that could catch on with investors. Yield 6.27% (Analysts’ price target is $35.73)
REAL ESTATE
TOP PICK
They operate RV and manufactured home parks -- a true land business without large capex requirements. Rents can increase substantially. Yield 1.97% (Analysts’ price target is $144.00)
REAL ESTATE
TOP PICK
The largest owner and operator of temperature controlled warehouses in the US. Part of the food supply chain -- on trend. They are partnering with the largest food suppliers in the US. Yield 2.12% (Analysts’ price target is $39.79)
REAL ESTATE
COMMENT
Markets are swayed by sentiment, optimistic today going into tomorrow's trade negotiations. She doesn't think it will be an all-encompassing deal, perhaps at least a stop in tariffs which would be positive. The trade war is impacting the world with two quarters of US contraction in manufacturing as well as in Europe. Overall numbers are starting to soften. Some progress in trade is needed. FedEx is a proxy to the trade war, but they bought they bought a European transport company, but need to invest more money and take more time to integrate them; also European economic softness doesn't help. Meanwhile, online commerce means more business-to-commerce, so FedEx and UPS need to invest more there. The US consumer remains very strong, and wage growth is rising. Consumers have some money in their pockets, so Costco is benefitting.
Unknown