Investment Q&A

Q: With mortgage rates increasing and housing becoming less affordable would now be a time to buy IIP.UN and TCN.

Q: Perhaps a bit out of your ballpark, but related to thoughts about bond markets.

I am currently on a floating mortgage which was very attractive a couple of years ago. That is going up, of course, but locking in would be about 2-3% higher.

You can't predict the future, but what do you see as the wise choice here? Stick with the floating rate or bite the bullet and lock in for the next 3-4 years?

Q: Currently, Invesque 6% convertible debentures series V are trading at about $83 US ( on the TSX). They mature on 30-Sep-2023 at $100, i.e. about 15 months from now.
This corresponds to a fabulous annualized Yield to Maturity of roughly 21%.
In your opinion, what is the risk that Invesque will default in the payment of these debentures? Does this seem to be a good risk to reward?
Thanks!

Q: What is your opinion of the latest acquisition of versus by collier …. Would you be buyers of shares of collier at the moment and your prognostic for a 5 years hold. Thanks !

Q: Hi,
I plan to sell my XLRE to raise US$ to add to some of my other US holdings that have been beaten up. For another real estate type holding which do you think is a better choice TCN or FSV? This can be held for 7-10 years till retirement.
Thanks,
Kerri

Q: I'd appreciate your comments on Dream Impact. There is very little news but the distribution has been good but it is 100% return of capital. Continue to hold or move on?

Q: Hi Peter
In May, 5i sold 1% of ZRE from the income portfolio. Is there a specific reason for this sale ? ZRE dropped significantly in the few months. Is the sale linked to the drop in value ? Do you still recommend purchasing ZRE ?

Q: Not the greatest idea to have a Reit IPO these days!. Well below expected and real IPO prices. At least dividend has been announced. Besides DRR being new and still quite small, do you see any problem with it ? Any new info ? Merci.

Q: What observations might you have on the validity of ATAX for an income portfolio? Thanks!

Q: With the acqusition do you see a stock issue ahead or how is it funded ?

Q: Blackstone bought a position in May 2020 and paid book value for the shares. The stock is now trading at 87% of the book value. It would not surprise me if they are looking to buy out the company. In any event, the stock seems undervalued.

Q: Hi, Are there any Reits based in Texas? I think a lot of people are moving to Texas and reits with holdings there should do well..What are your thoughts?

Q: TCN has been absolutely crushed in this market. Do you continue to like the company?
If so why? Would now be a reasonable time to acquire shares or would it be better to continue sitting on the sidelines until we see some signs of interest rates stabilizing? And what is your sense as to when this might happen?

Q: DRM breezed through most of the last six months of market volatility, seeming nearly invulnerable in its steady upward movement. Then, at the beginning of April, it began a steady downward movement which has accelerated of late. It has lost 29% in the last 20 days, and 10% in just the last week. Is this decline in any way justified by events at the company or its debt level? Would you consider it expensive for its sector?

Q: It's interesting to think about "special situations" that arise in such a volatile economy. Let's say that with increasing mortgage rates coming, the rate of foreclosures is almost certainly going to increase. What are businesses that will do well in this case? In USA or Canada? I saw on social media someone mention ASPS, but curious of your take on the thesis and companies that could do well.

Q: I am wondering about the relative safety of these Reits if interest rates runs really high. I was reading an article in Barron's which claimed a high number of Reits went bankrupt in the 70's and 80's, but went on to say it wouldn't happen today even in the same case scenario, but it did not say why. Wondering what you think of that statement, and if you could answer "why it wouldn't happen now". Do you think these Reits are safe to add to as they go down, and would their dividends be safe if interest rates ran hot for a couple of years? Thanks.

Q: It seems the market is sending the stock to zero here after a short attack. With the yield over 8%, would it be a screeming buy or a run for the exit as most likely scenario?
I know the shares should settle first, and we should not chase yield, but it sure looks enticing, so some help in objectivity please.

Q: I would appreciate an updated opinion on European Residential REIT. Why the big drop recently? Thanks!

Q: Is there a REIT or two that provides high growth potential and high dividend yield. Given the current market circumstances, I might be able to get something at a deflated price.

Q: Why did it dropped so much? The company bought a lot of the houses at much lower prices and it can raise rent. Thanks.