PAST TOP PICK
(A Top Pick Sep 29/20, Up 16%) It is controlled by a Canadian entity, Canadian Apartment REIT, but they won't be managing it next year. It is a bit of a tech hub.
REAL ESTATE
DON'T BUY
They have a corridor of office space in downtown Toronto, more of a boutique style of building. It was hoped they would garner above-market rents and have started to roll this out to market, but the issue is that it is a more difficult market. We have not seen a lot of leasing yet. We have to believe there will be a net reduction in office space demand after the pandemic. He is not looking to invest in it right now.
property mngmnt / investment
BUY on WEAKNESS
Cold Storage in the US. A leader. An integral part of the food chain. He thinks this is a great business. They have had a lot of difficulty recently on the expense side. Many of the suppliers are running through the safety stock and not replenishing supplies. This is a very labour-intestive business. We are getting very close to the bottom and he thinks it is probably a good buying opportunity.
REAL ESTATE
COMMENT
Focused on office across Canada. High Quality buildings in secondary locations. They operate at a higher distribution level. The issue is that they are paying out all of their cash flow. It is highly cap-x driven. There should be some cushion between AFFO and distribution.
0
BUY
PLD-N vs. EQIX-Q. PLD is the largest operator of industrial warehouse space globally. It is a fantastic company. It has benefitted so much from everyone going online and buying goods. EQIX-Q is focused on data center space. A great operator. The largest in its space. He prefers industrial space over data center space. The supply side is the big question and there is little supply of industrial space but there is lots of data center space. He prefers PLD-N.
investment companies / funds
DON'T BUY
PLD-N vs. EQIX-Q. PLD is the largest operator of industrial warehouse space globally. It is a fantastic company. It has benefitted so much from everyone going online and buying goods. EQIX-Q is focused on data center space. A great operator. The largest in its space. He prefers industrial space over data center space. The supply side is the big question and there is little supply of industrial space but there is lots of data center space. He prefers PLD-N.
REAL ESTATE
BUY
US grocery anchored in the US. It is in a good spot. They recently did a good acquisition of complimentary stores. It is pretty safe in terms of distribution.
REAL ESTATE