February 13, 2019

Reporting today from off Roatan, an island that is part of Honduras. Spent the day there. The local population is mostly of Spanish heritage but many or most speak English. The local income levels are mostly quite low. But they are an entrepreneurial people. Many try to make a living from cruise ship and fly-in tourists. Taxi drivers and souvenir sellers abound. An influx of vacation property owners has driven up property prices. Roatan is known for its diving opportunities as its coral reefs are close to shore.

Markets were with the S&P 500 up 0.3% and Toronto down 0.1%.

AutoCanada was up 3.4%

I believe Boston Pizza Royalties Income fund reports tomorrow. I am expecting same store sales to be about flat or down a little. Any gain would be quite positive. Distributable cash per unit will likely be down due to a higher income tax rate in British Columbia. They will “lap” that impact as of Q1 which will be good. They need to show an increase in distributable cash per unit very soon otherwise I would expect a possible small cut to the distribution. They have close to 30% of their locations in Alberta and that is not helping matters. I understand Ontario has been quite strong for them.

Teranet released the January home price index. They note some declines. But to my mind the declines have been quite modest so far. After seven months of decline Calgary is down only 2.4%. Granted home prices in Calgary have not moved much in ten years (after soaring for 10). But why should the value of an existing home that just gets older every year increase?

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