Q: I'm up 87% on BEI.UN and it is approaching a long time high. Does this still have legs or is it time to take some profits?
5i Research Answer:
BEI is doing much better than most REITs as it is a bit of a proxy for the energy sector, which is doing better these days. It reported a strong recent quarter and upped guidance. This was followed by several broker upgrades. We think, with interest rates likely peaking in Canada, it is worth holding, but we might trim it back to an original starting weight after its 40% gain this year. (i.e a 3% position may have risen to 4.2%, all else equal, and we would take it back to 3%).