REITs

Need to do research, especially in regard to distribution growth and debt level, and turnaround potential.

Derek Warren on BNN Bloomberg 2025/05/26
The 3 big industrial REITs (in order): Granite, Dream, Nexus.
Derek’s 3 picks = *

Allied Properties* (AP-U) - Office market puts press on rents. He believes when office market improves in next 2-3 years it will sell closer to real valuation.
Boardwalk (BEI-U)
Canadian Apartment* (CAR-U) - Countrywide portfolio of properties. Buying back stock. Selling off old inefficient properties.
CT [Canadian Tire] (CRT-U)
Chartwell (CSH-U) - 3 years of upside potential.
Dream Industrial (DIR-U) - Recession sensitive but he believes oversold.
Flagship* (MHC-NYSE) - Trailer parks in the U.S.
Granite (GRT-U) - Industrial in Europe, U.S. and Canada. He believes oversold because of fear of Magna as large tenant (and recession and tariffs affecting Magna), but Magna is only 3% of lease income.
H&R REIT(HR-U) - Is improving. They have been buying or selling in U.S. CHECK VIDEO TO CLARIFY!
Killam (KMP-U) - Maritimes
Melcor (MR-U) - Edmonton office and industrial.
Minto (MI-U) - Selling at half book value but affected by condo conversions.
Nexus Industrial (NXR-U) - Recession sensitive but he believes oversold. They don’t own.
Plaza REIT (PLZ-U) - Check McKeogh’s opinion on this and all the others! Also check debt levels and distribution growth.
Primaris (PMZ-U)
Pro REIT (PRV) - Regional in Maritimes and recently Manitoba.
RIOCAN (REI-U)
Smart Centres [Walmart] (SRU-U) - New leases. They have large parking lots with potential for development. Next 5 years good potential.

REJECTED Inovalis - France
Northwest Healthcare - too much debt
Slate Grocery

Eric Nuttall

Investment manager for Nine Point Partners, Eric has in-depth knowledge of the oil and gas business. His April 16, 2025 appearance on BNN Bloomberg provided his views on many of the top oil and gas companies in Canada.

My top buys from his list: MEG Energy and Freehold Royalties. Hold Veren for conversion to Whitecap and add to bring to board lot number of shares. Definitely hold ARX.

Baytex Energy (BTE) – debt and oil price drop dragging price down but safe to hold. Needs $70WTI to rally.

Canadian Natural Resources (CNQ) – deepest resource base in Canada.

Cenovus (CVS) – Negative EBIDA 4.5xCF, 8% FCFY. Quite discounted but for long term hold. Eric doesn't own.

Freehold Royalties (FRU) – div safe to $46 WTI. Owns in fund and Eric owns personally.

Headwater Exploration (HWX) – dividend at 8% sustainable into the low $50sWTI. Their Clearwater property is exceptional resource. Nine Point own in income fund.

Imperial Oil (IMO) – good at buying back shares but prefers to hold CNQ.

MEG Energy – dividend seems safe, 8% FCFY. Massive resource depth. Buy back 30% of shares. 35 years of stay flat inventory. Nine Point owns maximum 10% of shares. Huge stock buyback planned: 30% of shares at $60WTI and 60% at $70WTI!

Tourmaline (TOU) – sells for very high multiple even for a pure gas play.

Veren – hold on conversion to Whitecap

Whitecap Resources (WCP) – 7% FCFY. Div seems safe to $50-55WTI. Nine Point holds Veren (2nd largest shareholder) so will be holding Whitecap after merger. Eric owns personally.

Eric's Recommendations:

ARC Resources (ARX) – 5xCF good compared to US counterparts. Great value, well managed and they are buying back shares.

Athabasca Oil (ATH) – No dividend but no debt and have net cash! Bought back 2% of their shares in March alone! 50+ years of reserves. Above $70WTI they will buy back 60% of shares.

NuVista (NVA) – Great company but currently a HOLD. No dividend. Buying back 30-50% shares. 13% FCFY. 60% oil. 25 years reserves. Growing production by 50%. Nine Point is 2nd largest shareholder.