BMO manager looks beyond the REITs in real-estate sector

Operating companies feature prominently in Tyler Hewlett's portfolio.

Diana Cawfield 27 July, 2017 | 5:00PM

Real estate investment trusts aren't the only small- and mid-cap equities that provide exposure to the property sector, observes Tyler Hewlett, lead manager of BMO Canadian Small Cap Equity. Nor, for the most part, are REITs the best growth opportunities, according to Hewlett, who is vice-president of fundamental equities at BMO Investments Inc. in Toronto.

"Traditionally we have not held a lot of REITs," he says, noting that the fund currently holds only one. "But we've found a lot of operating companies, so non-REITs, within the real estate sector," he says. "Several of our top holdings just happen to be in that sector."

The spinoff of real estate from the financial sector to its own sector on Sept. 1, 2016, made no difference to the BMO team. According to Hewlett, they're not very focused on what the benchmark holds or what their peers hold.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
FirstService Corp206.55 CAD0.62
StorageVault Canada Inc3.36 USD-2.23
Tricon Residential Inc13.00 CAD0.78

About Author

Diana Cawfield

Diana Cawfield  Diana Cawfield is an award-winning writer who has been a regular Morningstar contributor since 2000. Her numerous publication credits include the Toronto StarAdvisor's Edge and Chatelaine, as well as the Canadian Securities Institute's online educational services.

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