P.I. Investment Club

[P.I._Model]

SMU.UN/TSE

At the meeting yesterday, we talked about income trust units, and how well these units have performed in the current environment of low interest rates and economic uncertainty. I mentioned one in particular - Summit REIT yielding 11.7%. As happenstance would have it, I caught the President being interviewed early today on ROB TV. He said that Summit is focusing on 2 types of properties - light industrial flex units, and open strip malls achored by grocery chain. These two types of properties apparently would withstand a tough economy - business tenants move away from expensive space to affordable space (light industrial), and consumers continue to buy groceries and daily essentials from open malls.

If it turns out that the very specific focus proves sound and the cash distribution maintained, the high yield could limit a major downside risk.