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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: With respect to ROC and reits. Should I as an investor with most assets in registered accounts avoid as a rule those reits with high ROC.
I assume ROC lowers the value of the company with each distribution . In a non registered account tax provisions allow one to offset the original coast by the same , this advantage is lost in a registered account.
Not being an accountant - am I missing something here?
Read Answer Asked by Leon on July 18, 2019
Q: I own these 4 REITS. Can you tell me what percentage of their distribution is return of capital, please

Carl
Read Answer Asked by Carl on July 17, 2019
Q: Good morning 5i Team

I currently have a half position in BPY.UN and have been looking for an opportunity to increase it to a full position (3.5%). I'm primarily interested in dividend income (I like BPY's 7%) supplemented with some growth. I tend to hold dividend payers for long term.

I would have thought lower interest rates would have been a tailwind for three reasons:
1) dividend income versus alternatives
2) lower cost of borrowing
3) lower cap rates for properties for sale, increasing potential sales price (offset by recession risks lowering demand for same).

Interested in your comments on this.
Thanks as always.
Peter
Read Answer Asked by Peter on July 12, 2019
Q: Hi,
What would be the best ratios to look at before buying a REIT : FFO, P/B , EV/EBITDA ?, …For example CUF has good ratios (may be because the price is down) but is far from a favorite among analysts. I have small positions in AP, HR, REI, PLZ, TCN. I sold SRU. I also have VNQ Etf, WIR, HOT and IVQ on the US side. The last two did not perform very well, but seem OK and have quite a big yield. Are my holdings a good mix or too diversified ? I find the REITs are historically expensive right now (ex IIP, DIR) and I’m hesitant to put more money in this sector. Thanks
Read Answer Asked by Denise on July 05, 2019
Q: Hello and thank you for your exceptional service. I am retired and dividends and other distributions are a necessary part of my income. In an environment such as we currently live in without inflation and with historically low interest rates. Aren't REITs a valid alternative to bonds and GICs? I own 15% in GICs, no bonds and I'm currently overweight at 9% in Real estate and wonder if my strategy is correct in your opinion. Should I remove some REITs exposure, which would you trim first and in what order from the list above. Where would you put the money instead? Thank you.
Read Answer Asked by Yves on July 04, 2019
Q: How do the above Reits differ in asset allocation, rate of return and fees?
Read Answer Asked by Lorraine on July 02, 2019
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