Today, The Weekly Buzzing Stocks by Billy Kawasaki and Andrew Moffs commented about whether SIA-T, DIR.UN-T, FCR-T, CRT.UN-T, SRU.UN-T, REI.UN-T, AX.UN-T, STWD-N, IIP.UN-T, CAR.UN-T, NXR.UN-T, GRT.UN-T, FR-N, CSH.UN-T, BEI.UN-T, MI.UN-T, NWH.UN-T, HOM.UN-T, MEQ-T, CHP.UN-T, ERE.UN-T, AP.UN-T, BDN-N, AAPL-Q, UPS-N, TSLA-Q are stocks to buy or sell.
Broadly speaking, yes, it does increase borrowing costs. But at the other end of the spectrum, you have to think about what's happening in credit spreads. Since 2023, credit spreads have contracted about 50%. So he thinks it's actually a pretty conducive market for financing costs right now, for both private and public markets.
He thinks transactions will pick up in 2025, which would be a great catalyst for publicly traded companies.
Broadly speaking, a sustained commercial real estate recovery is underway. Likes sectors that can act defensively, as well as those that offer growth. In the office space, he's looking for companies with trophy buildings, compelling supply/demand fundamentals, trading at discounts, growing cashflows.
The data centre sector is one he really likes, with really compelling demand factors and supply trying to keep up. Industrial warehouses are also a favourite, and the biggest sector allocation in his fund. Some slowing rent stats, but the gap between in-place rents and market rents is still very wide. Many positive secular demand forces on industrial fundamentals. Pockets of residential that he's positive on, such as manufactured housing communities. Grocery-anchored shopping centres have very defensive cashflows, with the most compelling supply/demand characteristics we've seen in many years.
Performed well, but up against a lot of new construction in their markets. Difficult to raise rents in 2024. Trades at discount to NAV. If you like a stock levered to the US economy and US dollar, not a bad name. If you own it, hold. Earnings won't necessarily inflect materially this year, but over the long term you should be in a good spot.
Yes, in much better position today than previously. Management transition. Hard to see it going back to $10 levels anytime soon. Decent job allocating capital (ie. selling assets) to pay down debt. Enough to pay March debentures. Risk/reward not that compelling.
Good job on capital allocation. Trades at wide discount to private market value. Macro for Canadian apartment fundamentals has been somewhat lackluster. Lots of competitive new supply. Housing costs are unaffordable, so low rental turnover. Rent controls limit increases. Very safe distribution. Need patience for Canada's economic picture to improve.