# True North Apartment REIT (TN.UN)



## maxandrelax (Jul 11, 2012)

Looking to add to my reit holdings with some residential properties. Hold Chartwell currently. True North has come up due to insider buying. There has been over 4 million in buying over the past year with very little selling. Distributions are over 8 pct. Any thoughts about this company? Thanks!
-Max


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## CPA Candidate (Dec 15, 2013)

I've looked into this REIT, small cap that is overlooked because of its size. Properties are middle class apartments in Ontario and further east, nothing fancy but will always be occupied. Selling below NAV, high distribution that is sustainable. The distribution appears so high primarily because the shares are undervalued. I did not know that insider buying has been high, but I take that as a good sign. From what I can recall (last looked at the financials in December), they won't refinancing loans for several years to come.

Barry Schwartz and David Baskin are owners and like the company, and I have a lot of respect for their opinions.


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## maxandrelax (Jul 11, 2012)

Thanks for your input CPA.


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## Homerhomer (Oct 18, 2010)

for opinions you can have a look here

http://www.stockchase.com/company/view/4329/0/True-North-Apartment-REIT/TN.UN-T


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## underemployedactor (Oct 22, 2011)

Hmm. Looking for some more REIT exposure in the old TFSA and have been sniffing around at this one. Like the utter simplicity of the model. Like that they are mainly in the GTA where there is a shortage of decent rentals. Someone give me a good reason to stay away from this one or I'm going to be forced to take a small position.


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## mars (Mar 11, 2014)

*Tn.un*

After looking at this one for a while I decided to take a small position today, got in at $8 / share.


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## maxandrelax (Jul 11, 2012)

Daniel Drimmer Director, continues to buy on 10th -20th... I couldn't imagine owning 350000 units yielding 8 pct. holy.


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## maxandrelax (Jul 11, 2012)

"Daniel Drimmer brings more than 15 years of management experience and a distinctive executive style as the founder and Chairman of the Board of True North Apartment REIT. Mr. Drimmer has been involved in exceeding $9.0 billion worth of acquisition and financing transactions in residential and commercial real estate. In addition to True North Apartment REIT, *Mr. Drimmer is the founder, President and Chief Executive Officer of Starlight Investments Ltd. (“Starlight”),* a Canadian multi-family focused asset management company, with a portfolio of 22,500 residential rental units and an additional 1,000,000 square feet in commercial properties across Canada"

So True North is a division of Starlight? A public vehicle?


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## doctrine (Sep 30, 2011)

They do have a 100% payout of FFO. This is higher than most other REITs, which may account for why investors have bid down the price. There is certainly no room for a distribution increase for a while until they can grow out of it. Three months ago, you could have gotten a 7.6% yield out of Artis REIT, but the difference is that their payout was only 70% of FFO. That is why I think they saw some capital appreciation and subsequent drop in the yield. Just my two cents. I wouldn't take these guys over another REIT.


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## CPA Candidate (Dec 15, 2013)

doctrine said:


> They do have a 100% payout of FFO.


Some investors take their distributions in new units (shares). Cash payout is 84%. I don't own them but I wouldn't be concerned if I did. I think the reason you own them over another REIT is you are buying a buck's worth of the apartment block for 85 cents.


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## liquidfinance (Jan 28, 2011)

I quite like the looks of this although picked up some of the smaller commercial reit.


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## HaroldCrump (Jun 10, 2009)

I would be careful of Daniel Drimmer.
I made good money on TransGlobe, but it was a matter of timing more than anything else.
Lots of folks lost money on TransGlobe.

He's also running some sort of accounting game with Starlight International.
I had looked into it a while ago.

For now, caveat emptor


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## Homerhomer (Oct 18, 2010)

HaroldCrump said:


> He's also running some sort of accounting game with *Starlight International.*
> I had looked into it a while ago.


I am always very careful when the investment is being advertised on the radio/tv and being painted like the next best thing since sliced bread. I am staying away from this one, there are many other reits that do not raise similar red flag for me.


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## HaroldCrump (Jun 10, 2009)

Homerhomer said:


> I am always very careful when the investment is being advertised on the radio/tv and being painted like the next best thing since sliced bread.


Do they advertise?
Or might you be confusing them with _Skyline_ REIT?
Starlight is the old Drimmer private company from where he transferred underperforming properties to TransGlobe.


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## Homerhomer (Oct 18, 2010)

HaroldCrump said:


> Do they advertise?
> Or might you be confusing them with _Skyline_ REIT?
> Starlight is the old Drimmer private company from where he transferred underperforming properties to TransGlobe.


hmm, I will need to listen carefully next time, now that you mentioned skyline indeed I may have mixed them up.


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## HaroldCrump (Jun 10, 2009)

Is this where you heard it?

http://ads.rogersradio.ca/cftr/place/skyline-wealth-management-inc/


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## Homerhomer (Oct 18, 2010)

Yes 680, I retract my statement then, thanks for correction.


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## maxandrelax (Jul 11, 2012)

Pretty good sign that this guy has been backing up the truck I think. Nice pop the past few days. Breaking some key moving averages along with the rest of the REITS.


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## underemployedactor (Oct 22, 2011)

I think I might be more comfortable with Canadian Apartment Reit (CAR.UN) also a bit beaten up but more diverse.


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## liquidfinance (Jan 28, 2011)

Quite pleased with my True North Commercial REIT so far. Early days though.


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## lost in space (Aug 31, 2015)

doctrine said:


> They do have a 100% payout of FFO. This is higher than most other REITs, which may account for why investors have bid down the price. There is certainly no room for a distribution increase for a while until they can grow out of it. Three months ago, you could have gotten a 7.6% yield out of Artis REIT, but the difference is that their payout was only 70% of FFO. That is why I think they saw some capital appreciation and subsequent drop in the yield. Just my two cents. I wouldn't take these guys over another REIT.


I picked this up a while back but I'm thinking of selling it, the FFO ratio hasn't really gotten better, as well in 2013 they cut the distribution for about 4 months in 2013 than restored it. I looked through the statements but couldn't figure out why. This bear market made me realize that I feel more comfortable with ETFs rather than individual stocks. So I'm break even so I'm going to sell it.


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## CPA Candidate (Dec 15, 2013)

I sold after the agreement to be bought by Northern which brought absolutely no premium when Northern shares tanked. Still made a profitable investment.

I had also been waiting for their operations and financial metrics to improve but it was slow coming.


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