Topic: How To Invest

Pat: What is your opinion on Temple REIT?

Article Excerpt

Temple REIT, $5.88, symbol TR.UN on Toronto (Units outstanding: 19.8 million; Market cap: $116.4 million; www.treit.ca), owns 11 hotels that contain roughly 1,500 rooms in total. Temple is the largest hotel owner in Fort McMurray, Alberta, where it owns six properties with over 700 rooms. Temple REIT bought its first hotel, the Temple Gardens Mineral Spa, in October 2006. Temple Gardens is a 179-room, full-service hotel and spa complex located in Moose Jaw, Saskatchewan. It is joined by a walkway to the Casino Moose Jaw. In February 2012, Temple REIT bought the 134-room Radisson Hotel & Suites in Fort McMurray, Alberta, for $25.1 million. Over the next 18 months, the trust will invest $2.7 million in this hotel, mainly to renovate the guest rooms, corridors and lobby. In the three months ended September 30, 2011, Temple REIT’s revenue rose 3.8%, to $16.9 million from $16.3 million a year earlier. Cash flow rose 18.2%, to $2.8 million from $2.3 million. Cash flow per share…