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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: I am concerned about the European holdings and the auto industry in a recession. So, I am considering selling Granite and replacing it with Nexus or Summit. because I still like the industrial space What do you think? Thanks
Read Answer Asked by gary on September 23, 2022
Q: I hate asking market timing questions as much as you hate answering them but...I have always been a bit light on real estate and am wondering if now is a OK time to add a position in either xre or zre. Second question: You have XRE in the income portfolio, today would you stick with XRE or I was looking at ZRE that has outperformed XRE recently. My concern about timing is with rising interest rates and the jittery markets that I might be better off just parking in the banks or consumer deffensive and worrying about real estate in a few years,
Read Answer Asked by Tom on September 23, 2022
Q: Looking for a decent investment in this inflation environment. This REIT hit my radar. I think you at 5i approve of it. My concern is the very high PE (approx. 30) and P/Cash Flow. Not sure what the forward PE is, but I'm hearing that forward earning estimates in general will sooner or later be ratcheted down anyway as higher rates start negatively affecting the economy.

Is there a better metric putting a valuation on a REIT like LSI?
Read Answer Asked by James on September 21, 2022
Q: Good morning.

I don’t know much about REITS and there are a lot of choices. Looking out 5-10 years, what do you feel are the best areas to focus on and what would be 2 or 3 Canadian REITS you like best and which one would you choose for a long term hold and why?

If there is a US REIT you like or even prefer, please include.

Also, If there is a primer you could suggest or a previous blog post please link.

Thanks, M
Read Answer Asked by Mark on September 19, 2022
Q: I'm looking for some inflation protection via investing in REITs and came across RQI and ICF. I'm trying to determine the difference between these two. They appear to have similar holdings, yet the payout appears to be quite different. In a response to someone's question back in May you mentioned that RQI's payout is taxed quite a bit more than a Canadian dividend - even if held within an RRSP, which by the way is where I would plan to hold it. Is it the same case for ICF ?

Which would be the better buy? Or is better to stick to a similar Canadian alternative?
Read Answer Asked by James on September 14, 2022
Q: Retired, dividend-income investor. Not a market timing question...ok maybe it sort of is.

Looking to potentially add to ZRE and just wondering where we are at in the investment cycle and if now is a reasonable time to be adding to ZRE?


Also, is there a seasonality to REITs? When looking at a 10 year chart, it appears to my amateur eyes that the last portion of the year looks to be trending down most of the time? It looks like the January to early fall period is usually positive?

Thanks for your help....Steve
Read Answer Asked by Stephen on September 13, 2022
Q: Hi Guys

I have owned Smart Centres for a while and done prety good by it but thinking I might sell that and add to my 1% position in Tricon. Where do you see them in terms of current pricing and future potential? Looking ahead over next 5 years which do you think will be the better position to hold?

Much thanks

Stuart
Read Answer Asked by Stuart on September 13, 2022
Q: I am looking at your answer to evaluating investment quality of REITS in which you note three important ratios to consider - Interest coverage ratio (EBITDA/interest of 3X or higher)), debt to equity - below 1.0x) and NOI or net operating income. I see you give EBIT margin and Net Profit margin in your company profiles but I was wondering if it was possible to calculate NOI from these tables. Are there any other important ratios one could use to compare various REITS. Finally, how would you rank the three REITS I have noted here. Thanks.
Read Answer Asked by Ken on September 08, 2022
Q: Hello 5i,

I read a response to a previous question, which suggested investors who own their home already have sufficient allocation to the Real Estate sector. Just want to make sure I understand correctly before eliminating the sector from my watchlist.

Still, if I was to include a couple of REITs, what is your opinion of CAR.UN and AMT?
Read Answer Asked by Garth on September 08, 2022
Q: Hi - I am just trying to better understand apartment REITs in this environment. Such REITs seem to still be in decline even though everyone is talking about how residential rents are firm and/or rising. So are apartment REITs like this one more affected by rising rates and overall mkt sentiment...than the prospect of much higher revenues? Thank you as always!!
Read Answer Asked by Douglas on September 07, 2022
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