Friday, September 12, 2008

CDN Real Estate 2

As I said yesterday, to diversify my portfolio, I have invested in some REITs. These are Real Estate Income Trusts. I have only invested in REITs that have commercial properties. This stock has been going down with the bear market, but has not done as badly as the TSX. Over the past year, 3 year, 5 year and 10 year periods, this stock has done better than both the TSX and the REIT Sub-Index.

There has been some insider buying on this stock. There has been no insider selling. In any event, insider buying is always a stronger clue as to what people think of a stock, as people buy when because they want to own the stock. When insiders sell, it can be for a lot of reasons, such as just needing some money, rather than being a clue to what they think of a stock.

The calls on this stock, from at the various analysts, range from a Strong Buy to a Hold. I must say I side with the Hold calls. The one positive thing is that they have already raised their dividend 3% for this year, which is higher than the 5 year average of 2%. The Accrual Ratio is also lower, at 3.7%, but it would be better if it was negative. The current P/E at 24.4% is higher than the 5 year average of 21.09, but the Trailing P/E (using last years EPS) is lower at 21% than the 5 year average of 22.4%.

It is not so much that I do not think that this stock is Buy, but I feel there are lot better bargains to be had. I would suggest that the stock is probably fairly priced, rather than under or over priced.

This is an equity real estate trust, which acquires and owns a portfolio of income-producing properties. It specializes in the acquisition and ownership of community shopping centres, and industrial and office properties across Canada. This company owns office, industrial, retail properties and some miscellaneous items such as apartment buildings. Its web site is See my spreadsheet on this company at I have reloaded by spreadsheet with the figures from the June 2008 Quarterly Report.

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at for a list of the stocks for which I have put up spreadsheets on my web site.

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