Seeking Alpha

Monty Spivak's  Instablog

Monty Spivak
Send Message
Technology and business consultant, who invests in Canada Europe, Australia, and USA. Deep financial sector and financial services experience from both business and technology perspectives. A do-it-yourself income investor, who is always evaluating and seeking high-yield and long-term, long... More
My company:
SPING Consulting Services Limited
  • Analyzing Canadian REITs, Part XII - 2012 Canadian Real Estate IPOs 6 comments
    Sep 27, 2012 4:14 PM | about stocks: DRETF

    The market has been active with new Canadian REIT IPOs, so I thought to update the list.

    Please note that:

    1. I have removed the 60-mo Beta, P/E, 1-yr Return, 3-yr Return, and 5-yr Return, columns, as these are IPOs.
    2. Fund IPOs are identified (italics), if you are interested, but are generally not in scope for this series (so the rows are incomplete).
    3. Most of the funds, and Pure Mult-Family are US properties only. The descriptions, below the table, identifies the portfolio composition.
    4. Blank cells for non-funds indicate that the IPO has not been closed as at the date of this article publication.

    Name

    Payout Ratio %

    CDN Recent Price

    CDN 52-wk High2

    CDN 52-wk Low3

    Yield

    Market Cap $k

    Dundee Industrial REIT

    N/A

    $10.00

      

    6.75%

    $176M

    HealthLease Properties Real Estate Investment Trust

    N/A

    $10.68

    $11.47

    $10.00

    7.96%

    $130M

    Middlefield Can-Global REIT Fund

    N/A

    10.00

      

    7%

     

    Morguard North American Residential REIT

    N/A

    $11.81

    $12.68

    $10.26

    5.08%

    $248M

    Pure Multi-Family REIT LP

    N/A

    $5.23

    $5.44

    4.94

    6.88%

    $60.5M

    Regal Lifestyle Communities Inc

    N/A

    $10.00

      

    7%

    $166M

    Slate US Opportunity No 1 Realty Trust

          

    Timbercreek U.S Multi-Residential Opportunity Fund #1

          

    Trez Capital Mortgage Investment Corp

    N/A

    $10.00

    $10.65

    $9.83

    7.0%

    N/A

    US Housing Recovery Fund

          

    US Agency Mortgage Backed REIT Advantaged Fund

          

    Dundee Industrial REIT (DIR.UN:TSX)

    From their website:

    At June 30, 2012, Dundee REIT's (D.UN:TSX) (OTC:DRETF) portfolio totalled approximately 27.6 million square feet of desirable high-quality office and industrial real estate assets.

    Office Portfolio - 171 properties totalling approximately 25.9 million square feet, of which our interest is approximately 21.7 million square feet. Our office buildings are currently located in Vancouver, Calgary, Edmonton, Yellowknife, Saskatoon, Regina, Windsor, London, Toronto, Kitchener-Waterloo, Ottawa, Montréal, Quebec City, Fredericton and Halifax.

    Industrial Portfolio - 77 properties totalling approximately 6.8 million square feet of which our interest is approximately 5.9 million square feet. Our industrial properties are currently located in Calgary, Edmonton, Regina, Windsor, Toronto, London, Ottawa, Montréal, Moncton and Halifax.

    The IPO is spinning-off the industrial portfolio. The IPO information is nicely summarized here.

    HealthLease Properties Real Estate Investment Trust (HLP.UN:TSX) (HREIU)

    The Company has been formed to own, develop and acquire seniors housing and care properties, which are leased to experienced operators. The Company owns the land and buildings, and leases them to operators on a long-term, triple-net lease basis. The Company's properties consists of a portfolio of 12 seniors housing and care properties, consisting of 1,656 beds/suites, located in the state of Indiana and the provinces of British Columbia and Alberta and three pre-leased development properties, consisting of 275 beds/suites, located in the states of Indiana and Illinois. As of June 15, 2012, the Company owned 15 properties, nine in the United States and six in Canada.

    Middlefield Can-Global REIT Fund

    An actively managed diversified portfolio of real estate securities, the majority of which operate in the Canadian real estate sector.

    Morguard North American Residential Real Estate Investment Trust (MRG.UN:TSX)

    This REIT is related to the other Morguard real estate companies (OTC:MGRUF) and (OTC:MRCBF).

    Morguard North American REIT is a publicly traded open-ended trust, created following an initial public offering in April 2012. The REIT was formed... to invest in a portfolio of multi-unit residential properties in both Canada and the United States. Its initial properties include interests in more than 5,400 residential units.

    Pure Multi-Family REIT LP (RUF.U:TSXV)

    Pure Multi-Family REIT LP was formed to invest in multi-family real estate properties in the United States. The REIT LP's long-term objectives are to make investments in Pure US Apartments REIT Inc. (the US REIT) or other subsidiary entities for the purpose of indirectly. The Company's portfolio consists of one business segment, operating three multifamily apartment properties located in the state of Texas. The REIT LP has two multi-family real estate properties that are located in the Dallas-Fort Worth area and include Windscape Apartment Homes and Oakchase Apartments. It has a combined rentable square footage of 300,348 and represents an overall land area in excess of 19.3 acres. It consist of 390 units with an average unit size of 750 square feet.

    Regal Lifestyle Communities Inc.

    Regal Lifestyle Communities Inc. filed a preliminary prospectus earlier this month. They have "current generation" Retirement Communities, which generally provide assisted living arrangements; the properties have an average age of approximately five years; there is a total of over 1,400 suites; are primarily located in the Province of Ontario; and, include a property located in each of the Provinces of Saskatchewan and Newfoundland and Labrador.

    Today (September 27, 2012), I published a brief article in The Digital Journal on my interview with the Regal Lifestyle Communities Inc. President, Simon Nyilassy.

    Trez Capital Mortgage Investment Corp (TZZ:TSX)

    The Company seeks to accomplish its investment objectives through prudent investments in mortgages to qualified real estate investors and developers, focusing primarily on short-term bridge financing needs. As of December 31, 2011, the Company invested in a range of sectors, which include residential, retail, industrial and office.

    Trez Capital is one of the largest non-bank commercial mortgage lenders in Canada. We offer private and institutional investors opportunities to participate in high yield mortgage investment funds and individually managed portfolios. We also serve the needs of commercial real estate developers by providing innovative, short-term financing on quality projects.

    We now manage a diversified commercial mortgage portfolio valued at over $700 million. Operating from offices in Vancouver and Toronto, our team of 40 real estate finance specialists manage all aspects of mortgage financing. From loan origination and property due diligence, to funding and servicing, our hands-on approach ensures that each loan is suitably structured and fully secured.

    That wraps ups this installment. Happy investing!

    Disclosure: I am long OTC:DRETF.

    Additional disclosure: Also long HREIU.PK. May initiate positions in Dundee Industrial REIT (DIR.UN:TSX) and Regal Lifestyle Communities Inc. (TSX)

    Themes: Canada, REIT Stocks: DRETF
Back To Monty Spivak's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (6)
Track new comments
  • Philipsonh
    , contributor
    Comments (651) | Send Message
     
    Monty
    I see that you are long Dundee DRETF.PK. What is your thoughts on
    Dundee International Reit DUNDF.PK. I am interested in both this one and the new industrial reit if I can buy it on the grey sheets; Low volume on OTC though;
    Thanks
    Howard
    28 Sep 2012, 12:24 AM Reply Like
  • Monty Spivak
    , contributor
    Comments (129) | Send Message
     
    Author’s reply » Hi Howard,

     

    Thanks for your question. I am also long (although only a small position in) Dundee International REIT (DUNDF.PK). This REIT holds commercial properties in Germany. I am not attracted by the portfolio - rather, I am impressed with how their management builds value through low-cost acquisitions, so believe that they are building the European portfolio at bargain-basement prices. Dundee REIT also continues to hold large positions (+40%) in Dundee International REIT.

     

    I also am challenged to purchase at reasonable prices in the Grey Market / Pink Sheets. For example, my Australian positions required years to build. The alternative is to find a low-cost broker to execute non-local-market trades, as we had previously discussed.

     

    All the best! Cheers, Monty
    28 Sep 2012, 08:45 AM Reply Like
  • Philipsonh
    , contributor
    Comments (651) | Send Message
     
    Hi Monty

     

    Suggest that you be extra careful with companies that participate in
    Nursing Homes in the U>S> as they depend on Medicare and Medicaid funding for the clients. It is unclear what is going to happen to this sector, to me, anyways, depending on who is elected In Nov, as President, and who controls Congress, and the Obamacare Rollout.

     

    Thank you for the information on Dundee.

     

    Howard
    28 Sep 2012, 11:41 AM Reply Like
  • Philipsonh
    , contributor
    Comments (651) | Send Message
     
    I believe that the Timbercreek U.S. multi- Residential Opportunity
    Fund #1 is a PRIVATE ( non-publicly traded ) Reit, with a very
    high investment requirement. ( Class B - $5Million, Class a-
    Unknown),.
    2 Oct 2012, 11:05 PM Reply Like
  • Monty Spivak
    , contributor
    Comments (129) | Send Message
     
    Author’s reply » Thanks, Howard! Great info to share! Frankly, I did not look into it as it is outside my "sweet spot":) Cheers, Monty
    3 Oct 2012, 08:47 AM Reply Like
  • Philipsonh
    , contributor
    Comments (651) | Send Message
     
    The symbol for the PURE MULTI-FAMILY REIT L>P>
    is RUF.U as it is listed on the TSX Venture Exchange.
    The Yahoo symbol is RUF-U.V
    The Reit states that they are 'discussing' an OTC listing
    so that U>S> citizens can have better access.

     

    OK
    Howard
    3 Oct 2012, 01:43 PM Reply Like
Full index of posts »
Latest Followers

StockTalks

More »
Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.