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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: 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 Sue 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 Doug on September 07, 2022
Q: I currently own these two REITs and they have, as expected, performed very poorly in 2022 - both down more than 30% YTD. Against the backdrop of continuing rising interest rate would it be advisable to take the losses and exit the REIT sector for now?

At present prime is at 4.7% (and continues to rise, latest rumour is another 0.75% or even 1% increase), while GRT.UN yields 4.2% and DIR.UN yields about 6% these two REITs are hardly enticing investments. What is your advice on this situation? Thanks.
Read Answer Asked by Victor on September 07, 2022
Q: Company is going to exit Long Term Care business by the end of 2023. Is this business is less profitable than the retirement residence business? After this exit how good this company will be in compare with Sienna Senior Living Inc. (SIA:T) on valuation basis and what will be your preference?
Thanks
Read Answer Asked by Piyush on September 01, 2022
Q: Hi. could you please rank these REITs in order of safest business model during a recession and relative security of distribution. Thanks.
Read Answer Asked by Gary on September 01, 2022
Q: I have never owned a REIT but started looking at a couple. In doing so I realized that I really don’t know what to evaluate in a REIT (beyond type of asset - land, commercial, residential, specialty) and things I normally see as red flags may not be here. Can you tell me a few of the most important fundamentals to look at when comparing REITS (negatives to watch out for specifically, and positive indicators). For example my initial concerns were steady increases on common shares outstanding (seems acceptable and typical of all REITS) and what debt levels are acceptable. If you could tag your favourite REITS today I would appreciate. I have only looked at LAND and IIPR so far.
Read Answer Asked by Dan on August 30, 2022
Q: Hi Peter & Team:

Your thought on the above REIT if i am going to buy now. From most favourable to least. Secondly your comment on the drop of distribution on INO.UN. Thank you
Read Answer Asked by DAVID on August 22, 2022
Q: Hi, I own the three REIT's, I wanted to sell one or two, which would you recommend as having the best potential over the next five years.

Thank you!
Read Answer Asked by Kimberely on August 17, 2022
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