Comparison Currently own TCN at a loss and wonder if I shouldn't switch to CAR.UN. Also own DIR.UN. Which do you think have the most potential in the current environment in an RRSP?
TCN expects some acceleration in acquisitions and a solid same-home NOI growth for this year. It has fallen dramatically from its highs, but revenue and net income growth has been robust, and its free cash flow yield is solid at 11.6%. It differs slightly from DIR.UN and CAR.UN in that it is not a REIT, but it is affected by the real estate market. TCN pays a yield similar to CAR.UN and below that of DIR.UN. We consider TCN a better option for a growth-oriented investor than CAR.UN, and in a better market backdrop we feel TCN can outperform CAR.UN. For a conservative investor, CAR.UN offers a good yield and will experience lower drawdowns (and upswings) than TCN. But overall, we continue to like TCN although investors will need to be patient for a recovery. (5iResearch)