Investment Q&A

Q: In answer to a recent question about real estate exposure, you noted that you prefer apartment-focused REITs to office REITs and office REITs to retail REITs. Is this preference only if you are purchasing a REIT for income first and foremost as opposed to hoping for some growth as well? It would seem to me that the residential REIT does have almost a guaranteed income stream but very limited growth potential due to rent controls (aside from takeovers). The office/retail companies eg. REI, however, are able to participate in a growing economy as rents are often based partly on sales and there is the ability to raise rents in an uncontrolled market albeit while benefiting from long-term contracts. If a company has a greater mix of assets, is that not better than being reliant on one sector? So, is this just a case of risk/reward as to what REIT to purchase or is there a lot more risk in REI than I realize?

Appreciate your insight.

Paul F.

Q: Hello 5i,
Are those 2 companies good enough exposure for the REIT sector? What % of portfolio would you recommend? Anything better to propose? Thanks.

Q: In the past, Morguard has increased its position in Temple during the latter's rights offerings. The announced purpose of the offering is to redeem a debenture, but is this the point at which Morguard takes control? If it doesn't, does that tell us anything?

Q: if you were a Temple shareholder would you participate in the rights offering currently offered .

Q: I am retired, modest risk appetite, have a diversified portfolio, and am considering buying a quality REIT for my RRIF for income and some growth potential. I have till now considered our home as our real estate investment. Your thoughts are appreciated. Do you prefer office vs retail or some combination? Please recommend a couple of names? Thank you for your comments. Edward

Q: OK it is Monday. I meant Smart Reit bond maturing in 2025. Good bond investment? Sorry for the confusion on my part.

Q: Hello,
Which one of these is a better buy and why? Purchase it in RSP or investment account? It appears that mrg.un is cheaper from a P/B value point. THANKS.

Q: Considering investing in the feb 6, 2025 bond as part of a diversified bond portfolio. Any concerns from your point of view.

Q: How would you compare Hot.un with Cldt Chatham Lodging trust as far dividend sustainable and growth.

Q: I would like to invest in 11 ETFs that track the TSX's 11 sectors. Are there individual ETFs for each of the TSX's 11 sectors. If so what ETFs for each sector would you recommend. Thanks ... Cal

Q: Colliers has been in a free fall. What's wrong with the company?

Q: I am concerned about the relative weakness in Milestone recently, compared to other reits. I have read a bit about the possibility that their Houston properties were weak in Q3 and they may be getting weaker. And yet, wouldn't the impact of the weakness in the energy industry be already present in the vacancy/rental rates? Also, does the relatively low rents (i.e. B properties renting for around $900/month) give some protection? In a long-winded way, I am asking if the Houston portfolio provides a lot of risk to overall growth (in cash flow) going forward? Or is there anything else causing the weakness in the stock price.I'm feeling anxious about this because I put my kids into it after their recent offering and the stock is down from there......

Q: Is the distribution safe?

Q: I depend on dividends for much of our income and would like to have your opinion on one or two these stocks for a 1/2-3/4 position, about $15-20,000 or so. hot.un, car.un, aar.un, wir.u - Thanks, Ted

Q: Further to Edward's Q about reits with US holdings, I might suggest MRG.UN. It may be a tad pricey at the moment (I just sold mine, moving into the commercial side with HOT,UN and HR.UN) but I think the dividend is safe.

Q: With FTS exiting SOT.UN at such a substantial discount rate, is it a good opportunity for us small retails to do an average down? I'm currently down about 10%, but if the company is operationally sound, it may be the chance to add more. Your advice?

Q: I have cash in RRSP that I want to put to use in purchasing a REIT. At this point, would you wait until after a 0.25% increase in the US interest rates (likely this year but not guaranteed), or purchase now?

Q: With Toronto Rentals Rates moving UP exponentially, can 5i recommend 1 or 2 Apartment Reits?

Thanks Kindly! Austin

Q: I know it's not your primary focus but I am wondering if you could provide some basic information on the above company. An article in Seeking Alpha suggested this US REIT is undervalued because it invests primarily in B Class shopping centres which may be out of favour because of concerns over the growth of e-commerce and how that change of shopping habits will kill these types of properties. If you accept the premise that these smaller plazas are not going to disappear, does this company represent a good value play? It pays a 9.5% (US) dividend and I don't to be in it just to chase a dividend.

Paul F.

Q: In my random research I came upon ACR.UN and this company intrigues me in term of yield and growth, even though it's a very small cap company.

Can you tell me a bit more about this company? It's one of the better growth REITs for the last few years in terms of unit price. It's yield is over 7% but its distribution has not been increased since 2013 though. It does not seem to have a large analyst following either.

Thanks.