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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: Ran a screen for companies with good dividend, high ROE, and reasonable P/E. Seems a lot of REITS appear on such a list. Could you indicate your general thoughts at this time on REITS and related companies. Could you also please rank the following on stability of income, with some growth potential. Thanks much.

FN First National Financial
AAR.UN Pure Industrial REIT
SOT.UN. Slate Office REIT
RUF.UN Pure Multi-Family REIT
INO.UN Inovalis REIT
EXE - Extendicare
Read Answer Asked by Kirk on March 29, 2017
Q: Hi there,
I have both of these in my investment account and would like to consolidate into one or the other based on the other stocks I currently own. Which of these would you prefer to own going forward and why. I like the dividends but am more interested in total return.
Read Answer Asked by kelly on March 27, 2017
Q: Hi 5i,
This stock has been a beauty for me. Up 30% and a dividend yield that is 4.7%. In my portfolio, instead of owning three banks, I chose one bank, one lifeco and this residential mortgage insurer. I am comfortable with this diversification in financials and with the real estate risk associated with MIC (have a 10-year horizon).
The mortgage rule changes in late 2016 did not change their story, but I know the ongoing housing issue in the GTA certainly has the potential to change their story. Is there an early-warning signal in housing that I can/should watch for?
Read Answer Asked by Robert on March 27, 2017
Q: I would like to reduce the number of REITs in my portfolio but strike a nice balance in industrial, residential, commercial and perhaps care homes. My present holdings include CUF.UN, AP.UN, CAR.UN, GRT.UN, AAR.UN and SRU.UN. Which of these would you eliminate and what might you add?
Read Answer Asked by Lloyd on March 27, 2017
Q: I own the following reits (or similar real estate focused equities) in our non-registered portfolio: ap, ax, car, d, fcr, hr, kmp, nwh, hot, cuf, aar, csh, sru, tcn. Collectively they account for close to 16% of the portfolio's value with most being 1% and only hr and ax being around 3% each. My question relates to a concern being expressed in many recent articles about the sensitivity such products have to rising interest rates. I'm wondering whether or not I should, in your opinion, be reducing my exposure here, and if so, by roughly how much and from which holdings. I am in a positive position in all of them with the exception of d, and overall they have been a very helpful part of our investments! As always, thanks for your valued opinion. Don
Read Answer Asked by Donald on March 24, 2017
Q: REITs
Further to my last question on this subject, in looking at the REIT portion of my portfolio, I am mindful of (and calculate) the sector allocation (office, retail, industrial, residential) and the geographical distribution (the main Canadian provinces individually and the US as a whole). I am cautious about US exposure, because I am retired, rely on the distributions for income and don't want excessive foreign exchange exposure. Do you have recommendations concerning sector and geographical allocation? My intuitive sector thoughts are residential 40%, office 30%, retail 20%, industrial 10%. My geographical thoughts are US 30% and Canadian provincial allocation by GDP. Or am I overthinking this whole thing?
Read Answer Asked by Carl on March 21, 2017
Q: My investment advisor has suggested that I sell Crombie due to uncertainty regarding Sobeys, Crombie's principal tenant. Do you share this concern?

He suggested True North as a replacement. What is your opinion?

I would replace Crombie with office and/or residential REITs.

With respect to office, I have enough Artis AX.UN, but could add to H&R HR.UN or buy another which you would recommend. Suggestions?

With respect to residential, I have plenty of Canadian Apartments CAR.UN but would buy another recommendation. Suggestions?
Read Answer Asked by Carl on March 21, 2017
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