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Canadian Apartment Properties Real Estate Investment Trust (CAR.UN)
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Granite Real Estate Investment Trust (GRT.UN)
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BMO Equal Weight REITs Index ETF (ZRE)
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Dream Industrial Real Estate Investment Trust (DIR.UN)
Q: Interest rates likely peaking and many real estate stocks are trading at discount. I am considering adding to real estate. Would you comment on this thought and suggest a stock and index.
5i Research Answer:
REITs will likely benefit in a stagnating or declining interest rate environment, and the fundamentals of most REITs have held up well. Another factor that has negatively impacted the price of REITs has been strong competition from other high-yield products such as high interest savings ETFs and GICs. We feel that REITs are at a good valuation currently, and can benefit from a declining rate environment.
Our favorite REITs include DIR.UN, CAR.UN, and GRT.UN. For an ETF, we like ZRE.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in ZRE.