Q: Hello Peter & Team,
You often Mention ZRE as a good option for exposure in the RE Sector and I have held it for some time. The dividend is ok but, I am under water a little over 8% since taking on the position in 2023, and I'm getting a little weary of waiting... If you suggest to continue staying the course (always long term holds in my portfolio) because you expect I will climb out of this hole, then that is what I will do. But if you think I might be happier moving on to an alternative that you could recommend which might generate some gains while providing solid income along the way, it would be a recommendation I wouldn't say no to.
Thanks for all you do
gm
You often Mention ZRE as a good option for exposure in the RE Sector and I have held it for some time. The dividend is ok but, I am under water a little over 8% since taking on the position in 2023, and I'm getting a little weary of waiting... If you suggest to continue staying the course (always long term holds in my portfolio) because you expect I will climb out of this hole, then that is what I will do. But if you think I might be happier moving on to an alternative that you could recommend which might generate some gains while providing solid income along the way, it would be a recommendation I wouldn't say no to.
Thanks for all you do
gm
5i Research Answer:
We think it is worth holding on here. The space is seeing a bit of momentum currently and Canada is likely closer to more rate cuts than the alternative which should help support the real estate sector and also boost the relative attractiveness of the yield. Finally, we are not sure if you are using price return or total return on the calculation, but after distributions, you could be positive since purchasing so we would just be aware/careful of anchoring to the initial purchase price.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in ZRE.