Q: Peter and staff, My question is on Cominar. It cotinues to be not well liked by the market. Many of the other reits have stopped going down or are recovering somewhat. I thought that Cominar was a very good stable reit. I must be missiing something. Can you please tell me what it is? Is there something different about Cominar from the other high quality reits? The best of the season to all of you, Thanks, Ken
Q: With TFSA deposits for 2014 approaching, I am looking to add a REIT component. Would you recommend an equal weight or market weight ETF for our TFSA?
Thanks for a great year and a very Merry Christmas to all.
Q: I would like to clarify my understanding of convertible debentures. AFN.DB, for instance, matures Dec 31 2014 and pays 7% interest. It is callable Dec 31 2013 by the company. I understand that its conversion rate was set at 22.23. Assuming that AgGrowth does not call the debenture and that I was to purchase it in early January, I believe I could expect two interest payments in 2013 and then 22.23 shares if the shares have reached their target price of $44.98 or higher by the end of 2014. Presently, the debenture is priced at about $40. If the shares do not gain further value in 2014, do I get $1000 in cash at the end of 2014 when the debenture matures or does the company change the conversion ratio in order to return the value in shares? Is there a negative impact; i.e., a significant dilution, on the stock price when the company suddenly releases all those shares to pay back the debentures? What is meant by the premium on the debenture? Is it the difference between the present value of the debenture and the value at the conversion rate? I thank you for your information and look forward to your reply.
Could you please comment on Dundee REIT (D.un) and Dundee International REIT (Di.un). Are their payouts sustainable? Is there any relationship between the two companies? Thanks!
Q: At this point from income point and perhaps a hold for 5 years...would you prefer D over REI.un...currently hold 5% Riocan and 5% H&R..thinking of switching out Riocan for Dundee...what are your thoughts?
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Asked by terrance on December 08, 2013
Q: Hi Peter, The 12 months return for XRE is down 8% (including dividend) is it time to get in? For a 10% position in a portfolio (retired), is it best to buy 3 or 4 individual REIT or simply buy XRE? (Riocan/H&R/Callaway/maybe another one...all equal weight). Also,I would include BEP.UN within the 10% allocation
Thanks
I am looking for income. Dundee REIT (D.un) currently pays an 8.2% distribution. There may be no growth for awhile, but do you see the distribution going down over the next 5 years? I would be quite happy with an annualized 8% return over that time frame. I know you don't have a crystal ball, but can you give me an estimated percentage of the likelyhood of a rate reduction.
Q: WE HOLD COMINAR, DUNDEE REAL ESTATE, H&R, RIOCAN FOR 11.38% OF OUR PORTFOLIO AND ARE DOWN 6%. DO WE CONTINUE TO HOLD OR WOULD YOU SUGGEST SOME CHANGE.
Q: Hi Peter,
Thanks for the excellent service provided to the small investor.
I read your positive report on Tricon. I own Morguard North American MRG.UN which is in the same business lower PE and higher dividend (I am down 6%). Should I switch to Tricon?
Thanks.
Q: Can you give any advice on Agellan Commercial Real Estate Investment Trust, I am considering using it on as a play on the US recovery, Also would like some of my money in US assets. Is the dividend sustainable.
Q: What is your opinion of Agellan Commercial Reit. Is a buy at these levels. Should all reits be avoided due to possible taper by the US fed. Thanks for your always insightful answers.