Another Top Pick Derek Warren, Portfolio Manager, Morguard Financial Corp.
FOCUS: REITs
Market Outlook:
REITs have been a very strong investment so far this year, with the Canadian REIT Index up over 8 percent, and the U.S. REITs up 16 percent (YTD to June 11, 2014). Real estate continues to be a very attractive sector for both individuals and institutions that are looking for stable returns and good yields. With the strong performance year to date we expect REIT returns to moderate somewhat, however we still see some attractive buy opportunities in mispriced smaller REITs. Additionally, there are significant opportunities for expansion or re-development within the portfolios of some of Canada’s larger REITs.
TOP PICKS:
Tricon Capital Group (TCN TSX)
This is my growth pick. Tricon is not a REIT, rather it is a very active investor/developer in the U.S. housing markets through land sales, community development, single family rental, and mobile home communities. Tricon was an active investor at the low points in the U.S. crisis, and is seeing the results of those investments with very attractive returns.