The Globe and Mail reports in its Saturday edition that on Friday, BMO analysts Heather Kirk and Troy MacLean released their top real estate picks for 2017. The Globe's Jennifer Dowty writes that the analysts note several headwinds for the group such as rising bond yields, earnings deceleration and reasonable valuations. They say, "Although interest rates have risen materially from their bottom in 2016, a 10-year bond yield below 2 per cent remains supportive of real estate values and favourable for refinancing activity for the majority of REITs." They believe interest rates increases will be modest, given their moderate Canadian economic growth outlook. BMO's economics group is forecasting 2-per-cent real GDP growth for 2017 and 1.8-per-cent growth for 2018. A second challenge is the lack of earnings momentum. With a target price of $11.50 (U.S.), the analysts believe small-cap stock, Mainstreet Health Investments, has 29-per-cent upside potential, including its attractive 7.8-per-cent yield. Also making the list is the largest owner and operator of senior residences in Canada, Chartwell Retirement Residences REIT. The analysts forecast a potential total return of 16 per cent, which includes a 3.8-per-cent yield.