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3 top picks from REIT expert Dennis Mitchell

Dennis Mitchell is chief investment officer with Sentry Investments. His focus is on real estate investment trusts.



Top Picks:

H&R REIT

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HR REIT will continue to increase distributions every quarter until the end of this year. There is also the potential for them to surface some of the value in the Bow later this year. Bow is a state-of-the-art office tower in Calgary that will be the tallest office building in Western Canada.



Brookfield Asset Management



Brookfield Asset Management is trading materially below its net asset value and is positioned to aggressively acquire quality assets and grow free cash flow.



Mainstreet Equity



Mainstreet Equity is trading at a discount to net asset value and offers significant growth potential through lease up of acquisitions, vacancies and the end of cash subsidies in several of its markets.



Past Picks: April 20, 2011



Killam Properties

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Then: $10.75

Now: $12.08

Total return: +17.41%



H&R REIT

Then: $21.07

Now: $23.06

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Total return: +12.78%



Calloway REIT

Then: $25.10

Now: $27.41

Total return: +14.77%



Total return average: +14.99%



OUTLOOK

Volatility will remain elevated as markets are forced to simultaneously digest improving U.S. economic data points and deteriorating European economic data points. Markets appear to have an upward bias to them, as much of the negative news of late has been shrugged off. Dividends will remain an attractive story as financial repression through a flat yield curve remains. However, investors may start to look at companies and sectors with more growth as markets continue to improve.



Compiled by Franklin Cameron, BNN Market Call Tonight

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