Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - The service offers a free two-week trial for potential investors to explore exclusive income-focused portfolios [1] Group 2 - The article emphasizes the value investing approach, highlighting that lower stock prices can create opportunities for acquiring more shares at favorable prices [2] - The author expresses a personal opinion on the benefits of investing in quality stocks during price declines [2]

Core Insights - CN has been recognized for the seventeenth consecutive year in the Corporate Knights Best 50 Corporate Citizens list, highlighting its commitment to sustainability [1][4] - The company emphasizes that sustainability is integrated into its operations, focusing on reducing emissions and investing in innovation [2] - CN's 2024 Sustainability Data Supplement outlines its progress towards sustainability goals, including safe and efficient goods transportation and community development [3] Sustainability Performance - CN achieved a reduction of approximately 4% in total absolute Scope 1, 2, and 3 greenhouse gas emissions from 2023, with a 27% progress towards its 2030 science-based target for Scope 1 and 2 emissions [7] - The company reported an 8% improvement in operational safety, although the personal injury frequency rate increased by 8% from 2023, indicating areas needing attention [7] - CN launched its inaugural Indigenous Reconciliation Action Plan (IRAP), which includes 16 measurable commitments for advancing reconciliation over the next three years [7] Economic Impact - Operating in Canada and the United States with approximately 25,000 employees, CN distributed over $15 billion in direct economic value [7] - In 2024, CN's capital investments were approximately $3.5 billion, reflecting its commitment to growth and sustainability [7] Corporate Citizenship Ranking - The Best 50 Corporate Citizens list is based on an analysis of 344 large Canadian organizations using 25 quantitative key performance indicators related to sustainability [5]

Summary of Key Points from the Conference Call Industry Overview: Global Logistics - **Trade Policy Instability**: The current trade policy landscape is characterized by significant instability, with potential conflicts in the Middle East affecting logistics and transshipment hubs. Multinationals and logistics partners are forced to adapt continuously [1][4] - **Q1 Volume Performance**: Strong Q1 volumes were reported, with ocean volumes increasing by 6% year-over-year (YoY) in April. However, there are concerns about potential risks to trade volumes in the second half of the year [1][3] - **Airfreight Revenue Growth**: The international airfreight industry is experiencing low single-digit revenue growth, with recent data indicating a slight decline in yields due to lower fuel surcharges [1][5] Key Metrics and Trends - **Global Trade Volumes**: Global trade volumes rose by 5.9% YoY in March, primarily driven by a 30% increase in US imports, likely due to demand pull forward ahead of tariff threats [2] - **Spot Rates**: Spot rates for ocean freight have spiked significantly, with the Shanghai Containerized Freight Index (SCFI) up by 41% and the World Container Index (WCI) up by 59% since mid-May [3] - **PMI Indicators**: Recent Purchasing Managers' Index (PMI) data shows a decline in China (-2.1 points to 48.3), while the US stabilized and Europe improved [2] Company-Specific Insights DSV - **Rating**: Outperform, Target Price (TP) DKK 1,650.00 - **Acquisition of DB Schenker**: DSV is expected to become the largest freight forwarder post-acquisition, with anticipated EPS of DKK 100+ by 2028 [9] DHL - **Rating**: Outperform, TP €43.00 - **Earnings Exposure**: Approximately 80% of EBIT is tied to e-commerce and world trade, with a significant portion coming from the Express division [10] Kuehne+Nagel - **Rating**: Market-Perform, TP CHF 190.00 - **Performance Issues**: The company has underperformed peers in volume growth, attributed to deep headcount reductions impacting commercial capabilities [11][12] A.P. Moller - Maersk - **Rating**: Underperform, TP DKK 9,350.00 - **Challenges in Container Shipping**: Spot rates are down approximately 40% year-to-date, with expectations of declining volumes and a challenging supply-demand balance [13] UPS - **Rating**: Outperform, TP $133.00 - **Cost Savings Initiatives**: UPS is targeting $3.5 billion in cost savings through restructuring, which includes significant workforce reductions [24] FedEx - **Rating**: Market-Perform, TP $249.00 - **Network Integration Risks**: The company faces challenges due to policy uncertainty and complex network integration, which may impact earnings [25] Investment Implications - **European Logistics**: DSV and DHL are rated as Outperform, while Kuehne+Nagel and Maersk are rated as Market-Perform and Underperform, respectively [8] - **North American Logistics**: UPS is rated as Outperform, while FedEx is rated as Market-Perform [8] Additional Considerations - **Geopolitical Risks**: Ongoing conflicts in the Middle East may complicate logistics and trade routes, particularly affecting the Strait of Hormuz and key ports like Jebel Ali [4] - **Market Sentiment**: There is a cautious outlook on companies like Kuehne+Nagel and CSX due to execution challenges and macroeconomic uncertainties [12][18] This summary encapsulates the critical insights and metrics from the conference call, highlighting the current state of the global logistics industry and specific company performances.

Group 1 - The article emphasizes a strong interest in Real Estate Investment Trusts (REITs) and an overweight position in the real estate sector, reflecting a long-term commitment to this investment area [1] - The company has over three decades of experience in building and managing wealth, indicating a deep understanding of market dynamics and investment strategies [1] Group 2 - iREIT® offers comprehensive research on various investment vehicles including REITs, mREITs, Preferreds, BDCs, MLPs, ETFs, Builders, and Asset Managers, showcasing a broad analytical approach [2] - The iREIT® Tracker provides data on over 250 tickers, including quality scores, buy targets, and trim targets, which aids investors in making informed decisions [2] - A new Ratings Tracker called iREIT Buy Zone has been introduced to assist members in screening for value, enhancing the research capabilities available to investors [2]

Core Insights - CN's Falcon Premium intermodal service has been awarded the Silver Container Award by the Asociación Mexicana del Transporte Intermodal (AMTI), recognizing its excellence in cross-border intermodal transportation between Mexico, the United States, and Canada [1][4] Group 1: Award Recognition - The Silver Container Award highlights the transformative impact of Falcon Premium on intermodal shipping and CN's commitment to building smarter, greener, and more resilient transportation networks [4] - AMTI is Mexico's leading intermodal transport association, promoting best practices in cross-border logistics [1] Group 2: Service Features and Benefits - Falcon Premium provides truck-like service reliability, enhancing speed, reliability, and environmental efficiency for freight movement from Mexico through the U.S. to Canada [2][3] - The service eliminates truck interchanges and optimizes route mileage, offering the most direct and fuel-efficient rail connection between Canada and Mexico, thereby accelerating speed-to-market and lowering emissions [3] Group 3: Collaboration and Industry Impact - CN developed Falcon Premium in collaboration with Union Pacific (UP) and Grupo México Transportes (GMXT), delivering a seamless all-rail interline service connecting Canada, the U.S. Midwest, and Mexico [2] - The service is recognized as one of the most efficient means to reach North America sustainably, with a significant reduction in greenhouse gas emissions by up to 75% [2]

Industry Overview - The Zacks Transportation - Rail industry is facing challenges such as tariff-induced economic uncertainties, persistent inflation, and supply-chain disruptions, compounded by geopolitical issues [1] - The industry has declined by 2.2% over the past year, while the broader Zacks Transportation sector has plunged 9.4%, contrasting with the S&P 500 Index's gain of 9.4% [2] Company Performance - Railroad companies like Union Pacific Corporation (UNP), Canadian National Railway Company (CNI), and Norfolk Southern Corporation (NSC) have consistently paid dividends, demonstrating a pro-shareholder stance [3] - UNP has a market capitalization of $131.80 billion, with a dividend yield of 2.43% and a payout ratio of 48%, having raised dividends for 125 consecutive years [6][8][9] - CNI, with a market capitalization of $64.08 billion, offers a dividend yield of 2.54% and a payout ratio of 47%, also showing consistent dividend growth [10][11] - NSC has a market capitalization of $56.46 billion, maintaining a dividend yield of 2.16% and a payout ratio of 45%, with a five-year dividend growth rate of 9.44% [12][13][14] Dividend and Shareholder Returns - UNP returned $3.9 billion to shareholders in 2023 through dividends ($3.2 billion) and buybacks ($0.7 billion), and plans to buy back shares worth $4.0-$4.5 billion in 2025 [9] - CNI paid dividends of C$2.07 billion and repurchased shares worth C$4.55 billion in 2023, with consistent efforts to reward shareholders [11] - NSC paid dividends worth $1.23 billion and repurchased shares worth $622 million in 2023, indicating a commitment to shareholder value [14]

Core Insights - Canadian National Railway Company (CNI) is investing $85 million in Michigan as part of its 2025 capital investment program, indicating strong confidence in the region's economic potential and the future of freight rail [1][10] Investment Details - The investment will focus on track maintenance and strategic infrastructure initiatives to enhance rail operations, including upgrades at Lansing, Battle Creek, and Flint railyards, as well as projects to build intermodal capacity [2][10] - Last year, CNI invested nearly $79 million in Michigan for similar infrastructure and maintenance projects, emphasizing ongoing support for rail and tie replacements, grade crossing work, and structure maintenance [3][10] Strategic Focus - CNI's president, Tracy Robinson, highlighted that investing in the network is about building for the future, aiming to strengthen the resiliency and efficiency of the network across Michigan [3] - The company is committed to efficiency, innovation, and infrastructure, which are seen as key drivers for long-term returns [4] Broader Investment Context - CNI has made several significant investments across North America, including $60 million in Minnesota, $36 million in Tennessee, $20 million in Indiana, $75 million in Mississippi, $170 million in Illinois, and various amounts in Canadian provinces [4] - Recent investments in Canada include $290 million in Saskatchewan, $475 million in Quebec, $165 million in Manitoba, $510 million in Alberta, and $600 million in Ontario [4]

Core Points - CN plans to invest approximately US$85 million in Michigan as part of its 2025 capital investment program, focusing on track maintenance and strategic infrastructure initiatives [1] - The investment will enhance intermodal capacity and improve operations at CN's Lansing, Battle Creek, and Flint railyards, ensuring safe movement of goods and supporting sustainable growth [1][2] - In 2024, CN invested approximately US$79 million in Michigan for similar initiatives, highlighting the company's commitment to infrastructure development in the state [2] Investment Details - The 2025 investment includes over US$3 million for the completion of CN's Flat Rock Transload facility, over US$5 million for upgrades to Autoport operations in Lansing, and over US$4 million to support an automotive facility in Lake Orion [6] - In 2024, CN's local spending amounted to US$136 million, with community investments totaling US$144,000 and cash taxes paid reaching US$8.1 million [6] Company Overview - CN operates a nearly 20,000-mile rail network, transporting over 300 million tons of goods annually across North America, contributing to sustainable trade and community prosperity since 1919 [5]

Core Points - CN plans to invest approximately US$60 million in Minnesota as part of its 2025 capital investment program to support track maintenance and strategic infrastructure initiatives [1] - The investment aims to ensure safe movement of goods and promote long-term sustainable growth in Minnesota and CN's network [1][2] - In 2024, CN invested approximately US$77 million in Minnesota for similar initiatives, highlighting its commitment to enhancing operations and infrastructure [2][7] Investment Details - The 2025 investment will focus on track maintenance and infrastructure projects to strengthen the resiliency and efficiency of CN's network in Minnesota [2] - Specific projects include upgrading operations at CN's Two Harbors rail yard with over US$9 million allocated and more than US$2.5 million for capacity improvements at Duluth Iron Ore Dock [7] - In 2024, CN's local spending amounted to US$117 million, with cash taxes paid reaching US$19 million [7] Community Impact - The investments are expected to solidify jobs for residents in Two Harbors and support Minnesota's iron ore supply chain [2] - CN's operations contribute to the economy by transporting over 300 million tons of goods across North America annually [5]

Market Overview - The market is approaching its all-time high again, recovering from a decline of approximately 20%, which marks one of five corrections over the past decade [1]