Slate Retail REIT (SRT.UN.TO)

He likes both their REITs. He is bullish on this one because they focus on grocery anchored malls. Above 7% yield and it is sustainable. He feels they will make tuck in acquisitions and increase the yield.

(Market Call Minute.) US focused strip centres. He prefers to play the US REITs, but this is trading at a discount and offers good yield.

(Market Call Minute.) Externally managed, which he doesn’t like, but he likes the markets that it is in, strip centre retail in the US.

They are being inundated with opportunities in the US. This is an entirely external shopping mall REIT. They have a rights offering which he feels is worth subscribing to. One of his favourite names.

A Canadian listed company that has all of its assets, over 60 grocery store anchored retail malls, in the US. This gives you a better economy and a healthier consumer. They are concentrated in smaller secondary markets of about 1 million population. Going into the grocery side because there are 37,000 grocers, a lot of mom-and-pop, so they are able to get the strong anchored tenant, and have done very well. A very healthy yield of 8.24%.

Invests in US properties, grocery anchored strip centres in secondary larger cities. Externally managed. A pretty stable business. He is a little concerned about what is the next iteration for the company. Doesn’t feel the dividend is at any risk. Dividend yield of almost 8%.

A Canadian REIT, but all US properties. Grocery anchored stores and in smaller communities, more of 2^nd tier cities with populations of about 1 million people. There is really no other competition and they are getting these at very attractive cap rates. Dividend yield of 10.79%.

This is a cross boarder REIT. He does not like the governance. He does not like some of the things that have been done to the pricing. What he likes is that the original portfolios that were bought very well. If they wished to privatize the company they could do so easily. This is grocery anchored strips.

They have taken advantage of the strong US economy, so it is entirely composed of US properties. Grocery anchored strip centres. As they continue to acquire, you have to look at their portfolio as a whole, which somewhat balances the risks. Have a fair amount of debt, especially floating rate debt, so if you do believe that we are in a rising rate environment, this would be somewhat more affected.

Some of the smartest real estate guys in Canada. They saw an opportunity to use Canadian currency to go into the US and buy grocery anchored centres in secondary markets. He is less enamoured on the REIT itself, because of the way it is structured and the way they have been rolling funds in. It requires a lot more governance oversight and he hasn’t been overly thrilled with the process the way some of the funds have come into the REIT. They also tend to have a higher amount of floating rate debt, which will make it much more interest rate sensitive.

Small REIT. Came out recently. Strip centers in the US, but Canadian listed. There should be more economic growth in the US over the next while. Management are good operators and know how to create value in real estate. They are in markets above a million people.