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Canadian Apartment Properties Real Estate Investment Trust (CAR.UN $39.08)
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Granite Real Estate Investment Trust (GRT.UN $80.58)
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Killam Apartment Real Estate Investment Trust (KMP.UN $17.68)
Q: Citing elevated redemption requests and tighter cash flows, some asset managers are joining a growing list of firms who are warning investors about changes to their real estate funds, which range from limited redemptions to reduced monthly distributions.
For example Trez Capital Mortgage Investment Corp, Nicola Wealth Management Ltd. and Centurion Asset Management Inc. informed investors about such changes. I own CAR.UN, KMP.UN and GRT.UN. Can I please get your thoughts for these three.
For example Trez Capital Mortgage Investment Corp, Nicola Wealth Management Ltd. and Centurion Asset Management Inc. informed investors about such changes. I own CAR.UN, KMP.UN and GRT.UN. Can I please get your thoughts for these three.
5i Research Answer:
Public REITs are much safer than private, because if an investor wants to sell they just sell into the market, and the company does not have to find its own liquidity. There are risks to the real estate market, but we would be fully comfortable owning the three REITs listed for an income-focused investor. They are solid, and well-managed, with good assets. Income is not guaranteed but we see little risk of cuts to distributions. They are among our favourites in the sector.