Morguard Corporation (MRC.TO)

They manage two REITs. The Corp is the name you want to own. It is a $200 stock. They are in sectors that are tough sectors to operate in – Office and Retail. We need less and less office space. MRT.U is the high dividend version of the corporation. MRG-U-T is their North American REIT.

The REIT has been challenged because of the types of real estate they hold in the retail space. They also hold office space that is also challenged. It is externally managed by Morguard Corp and he feels the fees being collected do not put them in synergy. You would be better to hold the parent -- MRC-T -- as it trades at a discount to book as well.

One of the largest Real Estate in NA. inside ownership that maintains a large control of the company. It is so cheap it hurts. If they sold all their RE tomorrow to say CPP they would get close to $300/share. They are buying back stock. He is not selling any share. It is illiquid, but the value is there.

They built a lot in the GTA. Rents have gone up.

Warning: You're in for the long term because it's very illiquid stock. A Hotel California where you check in anytime, but you can never leave. He loves this stock--great value. Companies like this either go private, is bought or it gradually rises in time. Trading at only half-book--incredible value.

It doesn't trade a lot, but it's a bargain. A massive real estate company in Canada with holdings across various sectors, from apartments to offices. It trades at a huge discount from its overall NAV. They've compounded their book value by
double digits over the last five years. They've been buying back stock. Buy this instead of actual real estate. (Analysts' price target: $205.00)

This still has room to grow. A splendid company with a great team of people. Has some very long-term leases of properties as well. A very, very strong company that knows its business. Thinks it will carry on expanding very carefully. One of his largest holdings.

(A Top Pick Nov 3/16. Up 12%.) A long-term holding for him. The company likes to buy distressed assets and real estate when it has been beaten up. They are working to do things with Temple Hotels in Alberta. An undervalued net asset value play. Feels the company is worth $240-$250 a share.

(A Top Pick Nov 18/15. Up 24.04%.) A very illiquid stock and pretty much trades by appointment. This is one that when you are buying, you never put in a market order, always put in a limit order. It has great assets. The NAV is probably $210-$220 a share.

Why buy Morguard North American REIT (MRG.UN-T), when this, as the parent, has more optionality and doesn’t have to pay out 95% of its cash flow. This is trading at a massive discount to its real estate empire. Thinks that pre-tax it is worth $250 a share. CEO has been buying back stock, as well as owning a significant portion. Dividend yield of 0.35%.

One of his best holdings. This is an amazing company in real estate. A special blue-chip. It has a really good team working for it.