January 18, 2019 - MKP
New! MCAN Mortgage Corp. -Q3-2018 Earnings & Price Target Update .....
January 17, 2019 - AI
Atrium Mortgage Investment Corp. Q3-2018 Earnings -Price Target Forecast .....
January 16, 2019 - FC
Firm Capital Mortgage Investment Corp. Q3-2018 Earmings - Price Target Fore .....
January 15, 2019 - SJR.B
Shaw Communications Inc. Fiscal Q1-2019 Earnings & Price Target Forecast .....
January 13, 2019 - CRT.UN
CT Real Estate Investment Trust - Q3-2018 Earnings & Price Target Forecast .....
January 12, 2019 - NVU.UN
Northview Apartment REIT-Q3-2018 Earnings & Price Target Forecast .....
January 11, 2019 - GRT.UN
Granite REIT- Q3-2018 Earnings & Price Target Forecast .....
January 10, 2019 - RUF.UN
Pure Multi Family REIT - Q3-2018 Earnings, Price Target Forecast .....
Recommendation Changes
MKP, AI, RUF.UN, HOT.UN, BPY.UN, more...

Importance of Yield - Updates: DRG, NVU, CRR, RUF, MRT, Preferred Share

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The transition from nearly 45 years of steadily declining interest rates and an extended period of interest rates hanging around at close to all-time lows is the new normal. Having interest rates bounce along at the low end of the long term range could be the status quo for quite a while. The range bound trend for interest rates began in 2011 and is still present 7 years later in 2018. The tail wind provided from declining interest rates that has been adding extra oomph to valuations is waning, while demographic trends are creating the strongest demand for income ever. Evidence of the size of this change is apparent in the US political landscape, where the incumbent President is becoming almost desperately irrational trying to fight the economic forces that come along with this next phase for interest rates and demographics. Going forward, earning reliable yields will be at least as important as growth for valuations.

Comments this week include comparison of price changes for the three main categories of preferred shares, for the S&P/TSX Capped REIT Index and the Dow Jones and S&P TSX Composite Index. This is to highlight the relative performance for each and to reinforce the importance regular income has on share price stability.

Earnings updates focus on the REIT sector and include Dream Global REIT(DRG.UN), Northview Apartment REIT(NVU.UN), Crombie REIT(CRR.UN, CRR.DB.E), Pure Multi-Family REIT(RUF.U, RUF.UN, RUF.DB.U), and Morguard REIT(MRT, MRT.DB.B). Dream Global REIT was initially formed in 2011 to hold commercial real estate outside of Canada. Their initial single tenant portfolio established a presence primarily in the German real estate market. Over the past eight years the portfolio has grown, the initial single tenant portfolio now contributes just 10% of revenues. Acquisitions during 2017 were transformative, growing assets by more than 50% with the addition of commercial space in Holland that includes industrial properties. The upside in the deal was evident in both Q4 and 2017 results with more expected as they improve on the low property occupancy rates. It took six years for Dream Global to fully achieve the diversification goal set when they were initially formed. Their goal has not changed going forward, distributions presently returning 5.9% are due for an increase.

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New Issues & Acquisition
January 18, 2019
New! Coverage Universe - Weekly Price Changes - Jan 11-18, 2019
January 17, 2019
New! TD Bank Preferred Share 5.2% Rate Reset New Issue
January 14, 2019
New! CIBC 5.2% Rate Reset Preferred Share New Issue
January 11, 2019
Coverage Universe - Weekly Price Changes - Jan 4-11, 2019
January 4, 2019
Coverage Universe - Weekly Price Changes - Dec 28 - Jan 4, 2019
December 28, 2018
Coverage Universe - Weekly Price Changes - Dec 21-28, 2018
December 21, 2018
Coverage Universe - Weekly Price Changes - Dec 14-21, 2018
December 14, 2018
Coverage Universe - Weekly Price Changes Dec 7-14, 2018