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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: Good day.

DIR.UN: I read that REITs become favourable in a rising interest rate environment. Is this true for industrial REITs too? Could you please help me to understand why. I assume that they can raise rents, but do they not have longer term rental contracts (?). Any property purchases would also cost them more. How do they benefit from higher interest rates? Thank you.
Read Answer Asked by Toge on February 07, 2022
Q: What are your top three value picks in the Canadian reit sector. What do you think of the sector today.
Read Answer Asked by Lawrence on February 03, 2022
Q: Hi 5I
I have my rent coverage in TCN. IIP.un, O, and IIPR. The portfolio weighting is fine, I believe(3% total). I am happy with the growth and payout of TCN & IIP
Question: I noticed your preference is to ZRE for income. Should I consider switching into ZRE going forward(TCN for ZRE)? Any other comments are appreciated.
Read Answer Asked by Peter on January 31, 2022
Q: Good morning Peter, Ryan, and Team,

With interest rates set to climb, do you believe that “residential” REITs/Real Estate stocks like CAR.UN, IIP.UN and TCN should be over-weighted in one’s portfolio? My thesis is that less people will be able to buy a house in an already overheated real estate market, forcing them to consider renting an apartment or home. (I assume that real estate is also overheated in the US when including TCN) Do you concur, and if so, can you suggest any additional names? Thanks.
Read Answer Asked by Jerry on January 25, 2022
Q: Hi,
I try to follow your metrics where I can. I think you usually recommend using forward earnings for PE ratios as the market looks ahead. In your answer to Cal on CSH.UN you referred to earnings for the year just ended to give you a PE of 20. Your database shows a PE of 746, which I believe is trailing as well. Did you mean the year ahead to get a PE of 20 or maybe I am missing something?
Thanks.
Read Answer Asked by Dave on January 19, 2022
Q: What is the difference between BEP and BIP? Aren't they both in utilities sector? Why does BAM feel the need to have 2 subsidiaries which focus on the same sector? Would one's portfolio need exposure to both?

If one is to hold only one infrastructure/utilities company in one's portfolio, which company would you recommend? BEP vs BIP vs any other suggestion that you think might be worthwhile? If it helps the answer, my risk tolerance is high and time line is 3-5 years.

Thank you for your guidance.
Read Answer Asked by Anh on January 18, 2022
Q: Would you consider apartment REITs as good inflation hedges? Rental rates and property values should presumably increase in an inflationary environment. However, the currently low dividend yields on these REITs, I assume, could cause some weakness in a rising interest rate world. What's the right way to look at these? Thank you.
Read Answer Asked by Greg on January 17, 2022
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