Investment Q&A

Q: I currently have a full position in ZRE and half positions in FSV and HCG at 44.65 and 38.75 respectively. In order to reduce interest rate sensitivity I am considering selling ZRE and using the proceeds bring FSV and HCG up to full positions. Other financial holdings are TD, SLF, and BNS. The dividend income from ZRE is not required and is currently being re-invested. Sector allocations are: Financials 15%, Utilities 10%, Consumer Discretionary 10%, Consumer Staples 9%, Industrials 15%, Health Care 7%, Telecom 9%, Info Tech 12%, Energy 9%, Materials 4%. Any feedback on this idea would be appreciated.

Q: What is your opinion of CHP.UN's longer-term prospects.

Many thanks,
Joanne

Q: We have only a 5% exposure to Real Estate and would like to sell D.UN, (about 1.4%) in a taxable account for tax loss purposes. Can I replace with another REIT holding before the 30 day period and if so what would you recommend? Thanks for the excellent service.

Q: Peter; Could you comment on this REIT and it 's safety of distribution ?Thanks.Rod

Q: I am thinking of selling my PWF and buying BPY.UN. It would increase by real estate weighting to 7%. (5% BPY.UN & 2% AX.UN). I know the stock has positive momentum but how do you think the stock will react if interest rates go up? I have held PWF for years and except for the dividend it hasn't done much.

Q: Regarding asset allocation and REITs, I know you consider them to be almost a separate asset class. Most advisories I receive have them in the Finance sector; one has them in the Manufacturing and Industrial sector. I own Sentry REIT Fund and TCN. I currently split them 50% Finance and 50% Industrial. Your thoughts on the allocation split?

Also, my REIT exposure is 8% of my total portfolio, including equities, fixed income and cash. It is 12% of my equity-only holdings. I am a retired income investor. Is this REIT exposure appropriate?

Thanks for your help.
Steve

Thanks, Steve

Q: Hi 5i team,
I have 11% of my portfolio in REITs and real estate stocks and these are CUF.UN (7%), FCR (2%) and HR.UN (2%). I am wondering whether I should reduce CUF.UN to 5% and buy something else in this sector? CUF.UN seems to underperform other real estate stocks but I really cannot find anything wrong with this company - reasonable debt, low P/E, high dividend... Am I missing something negative WRT CUF.UN? I have no problem holding the stock for 2-3 year term as long as dividend is safe and the company remains profitable. So here are my questions summarized:
1. Is there anything wrong with CUF.UN fundamentals and expectations?
2. Do you suggest to (a) reduce (b) liquidate my CUF.UN holdings?
3. If the answer to previous question is "yes" where would you reinvest in this or similar sector?

Thanks a lot! You are absolutely the best investment service I encountered in my 20+ years of investing.

Q: Could you please rank these for me in order of preference ? thanx

Q: Hi Peter and Team,

Can you comment on Brookfield Asset Management acquiring another 30% of BRP today? Would you advise continuing to hold BRP after this (I'm up about 25%) or is this a good time to sell and take a profit?

Thanks for all you do.

Jordan

Q: Could I have your thoughts on Amica. It has declined roughly 10% in the past year. Do you think it's reaching a point where it may rebound, or is there something negative in the companies fundamentals? Thanks.

Q: Could you explain difference between Basic and dilutive with regards to payout ratio ?

Q: I've been considering swapping PLZ.UN for either: BTB.UN, MRG.UN, or MKP for better security in yield and better prospect of longer term growth.

Which one of the three is deem to be the best, or I should rather just keep PLZ.UN instead. Thanks.

Q: could you comment on prospects now compared to a year ago ?

Q: Hi Peter and Team. AI has a nice DRIP program and a low beta. I am considering putting some money behind this stock using their DRIP but I would like to know what could be some of the risks (ie Canadian Housing Market) and should I enter a half position and wait for an interest rate increase to see how much of an affect that will have on the stock price. I enjoyed your topic and presentation at the Money Show...I appreciate you sharing your insights. If there is another DRIP stock that you like I am open to other options also.
Thank You
Jeremy

Q: Is RIOCAN a better Reit to own than H&R , I read somewhere Riocan is planning to develop some of it's properties and maybe build condos in Toronto. Does that mean more growth. The payout ratio is also quite good, is that true. Thank you.

Q: Peter,

As a follow up to Stephan's question on Oct 19, BMO's report on REITS shows only 8 of 34 Reits have return of capital of less than 50%. 16 of the 34 have a return of capital of more than 70%. As a general rule, would this not indicate that REITs are better invested outside of the RRSP.

Regards
John

Q: Please inlighten me on how the Reit distributions are taxed ( Interest or Dividends)...? Basically my question is, would it be more prudent to hold certain Reits in a Registared or Non-Registared acct?

Thanks

Q: I noticed that even though BEI.UN only offers a yield of slightly under 3%, it has combined returns in double digits for YTD, 1 year, 3 years, 5 years, and 10 years. That's impressive.

Do you think this trend can be continued? I'm interested in taking a major position in BEI.UN (say around 10% of my portfolio).

Thanks.

Q: Hi. I was considering buying ZRE to add some REIT exposure to my portfolio, however I am having a hard time getting past the 0.62% MER. If you were going to put together a small basket of REITs for exposure to this sector what names would you include.

Q: Just an observation, I have noticed the REIT sector really has held up fairly well during this correction. Obviously REITs still seem to hold some value even with the threat of increased interest rates. Would you agree with this observation, or are they just flying under the radar while everyone unloads their oil and gas stocks? Thanks.