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Pro Picks: Hot Ideas in Real Estate

Investment ideas from Dennis Mitchell of Starlight Capital

https://youtu.be/xrSYWXP3ymU

Watch the full episode: Markets may be gripped by housing panic and rising interest rates but are investors missing the real estate opportunity? In this episode of In the Money with Amber Kanwar, seasoned real estate investor Dennis Mitchell, CEO & CIO of Starlight Capital, shares why Canadian REITs might be one of the most mispriced areas of the market and what investors are getting wrong about the sector.

Pro Picks is brought to you by ATB Financial. With $62 billion in assets, ATB Financial is powering possibilities for more than 820,000 financial services clients in Alberta and beyond. ATB’s Capital Markets arm is a full-service investment dealer that offers investment and corporate banking, sales and trading, institutional research, and risk management. Visit www.ATB.com/inthemoney for more information.

1. Killam Apartment REIT (KMP.UN)

  • Significant supply-demand imbalance drives higher rents and mark-to-market growth.

  • Dominant in Atlantic Canada (over 10% market share), offering stability with less volatile price and rent growth.

  • Manufactured home community business is nearly recession-proof with low rents and retiree tenants.

Upside Potential: 20-25% upside, potentially up to 30%, with a tax-efficient 4% dividend yield.

2. Chartwell Retirement Residences (CSH.UN)

  • Occupancy recovery (from high 70s to low 90s, targeting 95% by year-end) and rent growth from supply-demand imbalance.

  • Delivered 45% cash flow growth per unit last year, targeting over 20% this year and mid-teens next year.

  • NAV growing at 10% annually, supporting mid-teens total returns, not fully priced in.

Upside Potential: Mid-teens total returns, driven by 10% NAV growth plus dividend yield.

3. Vici Properties (VICI)

  • Triple net leases ensure 100% occupancy and no operating cost exposure, with tenants bearing all risks.

  • 40% of leases (targeting 90%) have CPI escalation clauses, boosting rents during inflation spikes.

  • Casino properties, especially non-Vegas locations, cater to local gambling, less sensitive to economic downturns.

Upside Potential: Strong opportunity, particularly for defensive qualities and inflation-linked growth.

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