Our report on the Melcor REIT is updated. Based on its 9.0% yield and the fact that it is trading at 67% of book value, and supported by recent insider buying, it is rated Buy. But at the same time its distributable cash per unit has declined in 2018 due to a combination of moderately higher vacancies, lower rents on renewal and new leases and higher tenant incentives – all due to the recession conditions and office space excess in Alberta. About half its cash flow comes from mostly newer retail properties and those have fared much better. It is another investment that looks cheap but where there are no guarantees it won’t get cheaper.