Topic: How To Invest

Pat: What do you think about Slate Retail REIT? Thanks. Jack.

Article Excerpt

Slate Retail REIT, $13.97, symbol SRT.UN on Toronto (Units outstanding: 35.4 million; Market cap: $459.9 million; www.slateretailreit.com), owns 66 retail malls in 20 U.S. states. In all, those properties contain 7.7 million square feet. Slate’s overall occupancy rate was a high 94.4% as of March 31, 2016. The REIT took its current form on April 15, 2014. That’s when Slate Asset Management L.P. reorganized its publicly traded operations. This firm owns 6.7% of Slate Retail and manages the REIT. Slate Retail fuels its growth with acquisitions. However, it aims to cut this risk by focusing on the smaller, less-expensive properties that larger real estate firms tend to avoid. As well, it selects malls that have prominent anchor tenants such as Wal-Mart and supermarket chains like Kroger and Winn-Dixie. In 2015, the trust purchased 25 new properties for a total of $335.4 million (all amounts except unit price and market cap in U.S. dollars). As a result, its revenue jumped 92.5%, from $41.4…