June 30, 2017


American Hotel Income Properties REIT L.P. (HOT.UN on TSX), June 30/17: C$9.96, 52-week range: 11.25-9.83, Div: C$0.846, Yield: 8.49%

American Hotel is a limited partnership formed under Ontario, Canada regulations to invest in hotel real estate properties substantially in the U.S.  The hotels fall into two categories, both of which feature select-service. One category is premium-branded hotels in large secondary markets that feature diverse and stable demand generators.  The other category is a portfolio of hotels contracted to railway customers. Until recently AHIP’s branded hotels were located mainly in the US Sunbelt area, some in the mid-west, consisting of various Holiday Inns, Embassy Suites and the various brands of Marriott and Hilton.  On June 23, 2017, the REIT closed the acquisition, for US$407.4 million, of 18 premium branded Marriott and Hilton hotels containing 2,187 guestrooms, and located in Maryland, New Jersey, New York, Connecticut and Pennsylvania.  This equates to approximately US$186,000 per guestroom.  The hotels were bought from a university endowment fund and a US private equity fund.  This ‘’Eastern Seaboard Portfolio’’ acquisition now brings the REIT’s total to 113 hotels totaling 11,570 guestrooms, with 67 premium-branded select-service hotels accounting for 7,684 guestrooms and 46 rail crew hotels totaling 3,886 guestrooms.  The branded hotels represent about 80% of the REIT’s revenues.


Fiera Capital Corp.  (FSZ on TSX), June 30/17: C$13.75, 52-week range : 15.20-11.56, Div :C$0.68, Yield:4.95%

Fiera Capital is a leading independent asset management firm with more than C$122 billion in asset under management (AUM) as of March 31, 2017.  The company has a target of reaching $200 billion in AUM by 2020.  Recent expansion in the last few years has been mainly via acquisitions in US and Europe.  The company has also been entering lately into infrastructure investments such as solar and wind power as well as into drinking water and waste water utilities.  Fiera has increased its quarterly dividend 11 times over the last 8 years.


Morguard North America Residential REIT (MRG.UN on TSX), June 30/17: C$15.35, 52-week range: 16.21-12.40, Div: C$0.64, Yield: 4.17%

The REIT is an unincorporated, open-ended real estate investment trust that owns, through a limited partnership, interests in a portfolio of 15 Canadian residential apartment communities, located in Alberta and Ontario, and 31 US low-rise, garden-style apartment communities located in Alabama, Colorado, Florida, Georgia, Louisiana, North Carolina and Texas consisting of more than 13,000 residential suites.  The REIT currently pays a monthly distribution of C$0.05333 per unit.


Pure Multi-Family REIT (RUF.UN on TSX-V), June 30/17: $8.70, 52-week range: $9.67-7.37, Div: US$0.375, Yield: 5.52%.

Pure Multi-Family is a Canadian-based REIT that invests in class A apartment properties in major US Sunbelt markets that exhibit strong population and economic growth trends.  Mainly in Dallas-Fort Worth, Houston, Austin in Texas and Phoenix in Arizona these institutional-quality properties presently number 19, comprising 6,209 residential units situated on 328 acres of land.  Over the last 3 months the REIT raised C$184 million in two public offerings, each consisting of 10.3 million units and priced at C$8.95 and C$8.90 per unit.  There are now 76.7 million units outstanding as of June 30, 2017.  The REIT continues to pay a monthly distribution of 3.125 US cents.

 

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