On May 23, 201, I purchased 70 shares of Dundee REIT at $35.40 with $5.20 commission in my margin account. At my ACB, the yield is approximately 6.31%.
Why did I purchase this REIT at this price? The 52 week low / high is 34.05 / 39.740. The REIT has a lot of government departments as tenants in their REIT portfolio. I also like this REIT as their other tenants in their top 20 tenants are highly successful companies. According to Morningstar.ca as of May 25, 2013, Dundee REIT is trading at Price/ Book of 1 and ROE of 12.8% (TTM). In January 2012, Dundee REIT purchased Whiterock REIT to make it one of the biggest REITs in Canada. I was a unit holder of Whiterock REIT and elected to have my units redeemed as cash. As the Whiterock REIT units was held in my margin account, I transferred the cash I received to my TFSA and purchased shares of Dundee REIT and held it ever since.
My plan is to sell these 70 shares for $150 -$170 gain excluding distributions. I will continue to hold my other units of Dundee REIT in my TFSA.