On Friday from Peter Imhof. GLTA
Top Picks:
Milestone Apartments REIT
Purchased more shares at $15 a few weeks ago
Milestone’s assets are mostly located in the U.S. Sunbelt, where population growth is strongest. The management team has done an excellent job operationally, and have been able to increase cash flow at a rapid pace. The stock trades at discount to other REITs, despite that it has done better operationally. The story is still not well known and has just recently crossed the billion dollar market cap threshold. The company has recently increased its distribution and changed the distribution currency to U.S. dollars, which bodes well for Canadian holders with the weakness in the Canadian dollar.
MST.UN-T 2016-01-08 TOP PICK Peter Imhof
Not really a REIT player, but looking at this on its own merits, he saw all the metrics that he likes to see in a regular company. These are US apartments in the Sunbelt where population growth is higher. A lot of it is in Texas and Florida. Although operations are in the US, they are listed in Canada and cash flows are in US$s. Just recently announced they were going to change their distribution from Cdn$ to US$. They also announced the distribution was being bumped up by 12%, but since that announcement, the Cdn$ has fallen more, so you are actually getting about a 20% bump in distribution. Payout ratio is fairly low below 60%. Recently made a big acquisition from Starwood which should give them an opportunity to grow more rapidly and to make more and more acquisitions. They are also in areas where there are no rental controls. Trading at about a 20% discount to their peers. Dividend yield of 4.4%.
Login to show your approval Login to show your disapproval / Be the first to comment
Price:
$14.860
Subject:
NORTH AMERICAN - SMALL
Bias:
BEAR
Owned:
Yes