Investment Q&A

Q: Many experts say that no REIT's are necessary in a diversified if you own a home. Do you agree? How do you personally view this situation? Very curious. Thanks Ron

Q: Hello,
Has the REIT issued shares in the last few years to fund their residential redevelopments?
What’s the current valuation against peers (price / ffo).
Can you comment to their level of debt vs other REITs. It seems acceptable and supported by a strong leasing profile, although retail.

I am planning on starting a position ant these levels and was looking for your general comments. Thank you!

Q: Can you break down their exposure to various types of real estate? Eg. Commercial, apartment, industrial. How does the recent issuer bud change this?

Q: Allied Properties yesterday made a change from a closed end trust to an open ended trust.
Can you please comment with respect to the impact on the shareholders of this change.
Thanks.

Q: Further to the recent question. NHF currently pays $1.26 pa. does the new structure reduce the yield and if so, by how much? Thanks

Q: With mortgage rates elevated and a shortage of existing home supply is there a home builder name you would prefer? BLDR, TOL, and GRBK. Any Canadian Homebuilder companies to look into? Thanks, Lesley

Q: I have had this company for a while now. Its down 62%. The dividend is great, but do you see the price appreciating? Thanks.

Q: Hello 5i Team

Northview Fund issued a press release June 12 announcing a recapitalization event and conversion to a traditional REIT (Northview Residential REIT NRR-UN).

There was lots of information to un-pack from the news release, however I am confused by the statement regarding future distributions once the recapitalization occurs:

In anticipation of the completion of the Transaction and the conversion of the Fund into a more traditional real estate investment trust, it is the Fund's intention to commence paying a distribution of $0.625 per Class A Unit per annum, or $1.09375 per Unit per annum after giving effect to the Consolidation

Based on the above, the current holders of NFH-UN would receive $0.625 per annum per unit (i.e. approximately 7.18 % based on current $8.70 unit price).

Questions

1 - Is my interpretation of the proposed distribution correct?

2 - Is it better to wait a while until all the applicable documents are available on SEDAR and can be reviewed prior to purchasing units?

2 - General opinion of this recapitalization

Ironic this entity has gone full circle in the last four years (Northview Apartment REIT, Northview Fund and now Northview Residential REIT). Lots of fees for investment bankers and lawyers.

Thank you

Q: Dream Industrial REIT seems to be doing very well on its own. I am confused and concerned over how it relates to, and is impacted by, the other Dream offerings (Dream Office, Dream Equity etc.). The market didn't like the Secondary Bought Deal Offering (May 16th) and I'm wondering if there are other such risks with DIR.UN being part of the Dream umbrella. Any insights would be much appreciated.

Q: would you recommend this to an income investor. Is the dividend safe?

Q: What is your opinion on Essex Property Trust? It has come down a lot from its high as rates have risen. How does its valuation and balance sheet look? Does it provide good rebound potential assuming rates peak or are the California exodus and WFH trend real risks?

Q: Covid created the Virtual Office with many businesses opting to work from home using Zoom, Google Meet and MS Teams to name a few virtual meeting suppliers. Is there a potential looming on the horizon that office space will have a high vacancy rates and create pressure on REIT's that carry these empty spaces down the road?

Q: Hello 5i, I am thinking of buying Granite Real State Investment Trust. Before I do so I would like your opinion on the company's debt compared to other major Canadian REITs? I am somewhat concerned about the following excerpt from the company profile "Granite derives nearly all of its revenue in the form of rental income from its properties. The company's largest tenant is Magna International, an automotive parts and systems manufacturer, which accounts for the majority of Granite's lease income." This is as if most of their income depends on Magna only, is that a concern to you? Thank you

Q: Assumption: With 2 years interest rates will begin to go down.

A. you comment on interest rates

B.What Reits do you recommendation now and if interest rates go down

C. recommendation for income careful investor

Q: Can you comment on the REIT's June 7 press release? Will this news help to alleviate investor concerns?

Chris M.

Q: Further to my previous question, in their last financial results, they speak of a recapitalization event. Can you speculate as to what form that might take? Would it likely be a bond issue followed by share buybacks, or ...???
Thanks!
Paul K

Q: I would appreciate an update regarding the payout ratio for this company, and your assessment of both the likelihood of a dividend cut and the relative safety of the dividend after, say, a 50% trim (which today would still leave about 6.5% payout).
Thanks!
Paul K

Q: Once they payout the $4.55 special dividend, we should be looking at a $9.50 or less stock, do we know if the monthly distribution is staying the same as it would then be yielding over 7%?

Q: I did read your last comments .I do keep stocks long term for dividends.Since more people work at home,should we still believe in the future of this Cie (according to the kind of contracts and customers they have),and in this context would the stock still be a "hold",or rather a buy or a sell ?

Q: 5i
When did Dir.un announce a $4.55 special distribution?