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Why Killam?
Rather than dissuade you, what is it that made Killam a potential holding. It appears that they rent suites, apts to individuals mostly in the Maritimes, and Eastern Canada. If Killam were renting in a place like Ft. MacMurray where the local economy is quite healthy then I would "get it". Why not choose ZRE or XRE?
 

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I own KMP. Despite the macro economic pressures on the Altantic provinces, KMP is doing just fine there with occupany and rent prices. They are also expanding into Ontario. I think they are a great buy with a 6% yield here. Long term there will probably be a small 3-4% dividend increase every couple of years as well (last ones Dec 13 and Jun 11).
 

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Michael Missaghie is a REIT analyst that I enjoy listening to, and he believes there are better opportunities elsewhere in this sector. If you want an individual stock and wish to avoid the ".UNs", he really likes First Capital Realty (FCR).
 

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FCR is good too. FCR and KMP are my two real estate companies. Another lower-yield alternate is Melcor Developments (MRD), which has better growth (and currently a better P/E) than both of them.
 

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Sigh. Killam is voting to convert to a REIT, which will likely be successful.

http://www.stockhouse.com/news/pres...oposed-conversion-to-a-real-estate-investment

Too bad, I appreciated the dividend tax credit and easy accounting in my non-registered account. Sold my 1950 shares today, moving on. Bought back into Alaris, which I sold in 2013 at $28.50, now back in at $27, with a dividend is 30% higher than when I sold (on a per share basis) thanks to new investments so basically able to maintain the yield KMP->AD.
 

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Higher payout yes, but that is offset by no tax credit. Works well in RRSP/TFSA because you don't pay the taxes on the higher payout, but I was holding it non-registered for some real estate exposure. May jump back into FCR if it drops below $18 again.
 

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Forgot to mention, they aren't increasing the payout at least to start (not mentioned is what they're doing with the tax savings), so I am worse off in the short term and I'd rather just shift the 6% yield into something more tax efficient while non-registered. Good company though. I had kind of hoped it would have been bought out before it decided to convert.
 

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You can always get in later doctrine. That's my plan....once the conversion happens, before they ramp up distributions, buy some inside the TFSA.
I used to live in one of Killam properties in Nova Scotia. Although I was pretty happy while staying, the company is in net income downward trend and the stock seems more expensive than other real estate companies. So I would wait until the conversion happens and probably consider adding it to TFSA.
 
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