Investment Q&A

Q: I am fairly new to DIY investing and 5i. Have really appreciated the knowledge I am accumulating from your subscription. I am overweight in financials and would like to reduce. Currently own MKP (7%) and AI (2%). Could you give me your thoughts on these companies and rank them in order of “dividend safety/growth”? Thank you.

Q: What do you make of Firm Capital Property Trust? They raise their dividend and recently have had a good quarter: “NOI for the nine months ended September 30, 2020 was approximately $21.4 million, a 32% increase over the $16.2 million reported for the nine months ended September 30, 2019.”

Most of their tenants are Grocery, Pharmacy or essential services. They also own interests in residential and industrial properties.

Thank-you.

Q: After reading Opendoors convincing investor presentation, I'm looking to start a position in an ibuying company. How would you rank these three companies in terms of overall growth? (rdfn/open/z) Do you know of any Canadian listed companies that take part in this?

Thanks

Q: I have a position in BPY that has finally came back to my initial purchase price after the recent news. Is it wise to sell now or hold and wait for buyout. If one is to hold shares, what would happen to the shares when the buyout finalizes?

Q: BPY/BAM possible deal.
As a holder of BPY the sale of BPY at the suggested price of $16.50/share is an absolute steal and robbery that is well timed to take advantage of the situation as we come out of the pandemic. That of my chest, to quote; "BROOKFIELD ASSET MANAGEMENT - HAS ASKED BPY BOARD TO APPOINT SPECIAL COMMITTEE OF INDEPENDENT DIRECTORS TO COMMISSION INDEPENDENT VALUATION OF BPY UNITS"
How independent is this special committee likely to be? Is it likely that there will be a vote of all share holders?

Thanks, Stephen S

Q: Hi Guys
I always thought the book value of BPY.UN (currently showing $29 CDN) would establish the floor of an monetary offer if BAM ever decided to buy out BPY.UN, currently trading at $21.60 CDN. If the real estate holding were sold off piece meal and the company wrapped up do you think that the value that was realized would approach book value now - about $29 a share. And if so, how could the Directors of BPY.UN be acting in the interests of the shareholders in accepting the offer from BAM rather than realizing full value for shareholders? I am just wondering how an associated company like BAM buys a company below book value?

By the way I also hold a full position in BAM so I guess I will benefit either way this comes out but the offer looks below board.

Much thanks

Stuart

Q: I am interested in this REIT, please give me your opinion with regard to comparison to peers and anything else that is relevant.

Bill

Q: Hi,
Is the Brookfield family not the majority shareholder of Brookfield Properties ? If so, I do not see how the present offer would be turned down or increased.

Thank you

Q: If the BPY going private deal ends up happening would this be positive for BAM?

Q: Hi 5i:
Based on the idea that offices will not be needed as much in the post pademics future , is it worth to keep this stock (SOT) for a 5 years period?, or it would be better to switch to HR for example.
wishing a good year to your team and all members. Alex

Q: Hi 5i team
I am under water on Brookfield property partners if taken private at $16.50. I assume I will end up taking a loss. What are your thoughts and advice.

Regards

Q: I’m confused on the offer by Bam to buy out shares as to the Options shareholders have.
Is it 14.5%+- premium plus 0.4 of a BAM share? Or 14.5% premium or the 0.4 BAM share ?
If it’s 1 or the other, then I feel this low premium on the shares is not fair. It was recently higher and is simply consolidated before next push up. This is opportunistic similar to the lumber company deal that shares holders rejected last year( company escapes me atm (canfor or interfor).
How do you view the proposed deal?
Just last week I bought call option on BPY.un , would you simply take the profits today or hold out for possible better offer?
Thanks for your help again 🍻

Q: Hearing this morning that Brookfield offers to privatize BPY. What could this mean for shareholders of BPY?

Q: Happy New Year.

According the article in the link below, BPY.UN generated year to date funds from operation (FFO) of just $665 million while paying close to $1.541 billion in interest. I saw a fairly recent Youtube interview with Bruce Flatt, and he seemed quite upbeat on Brookfield's overall outlook going forward. How much of a concern is this FFO/Interest ratio to your team?

https://seekingalpha.com/article/4396749-look-astronomical-leverage-brookfield-property?mail_subject=11-3-yield-high-insider-ownership-pandemic-resistant-newtek-business-services&utm_campaign=nl-investing-income&utm_content=link-1&utm_medium=email&utm_source=seeking_alpha

Thanks.

Q: Could you please update and expand on your analysis of Sept. 24 on Inovalis. What is the track record of their management team? As you pointed out in your prior analysis this isn't just a period of risk; there is significant opportunity especially at the cost of capital they reported in Q3.
Thanks, Hugh

Q: Hello, Can you give me your thoughts on this company, both long term and short term.
I currently hold this stock at 3% weight.
Thanks

Q: Hello 5i Team

I have been researching the controlling (or largest holder) of the various REITS on listed on the TSX. However I have difficulty in determining the largest holder in several cases.
Some companies make it very easy (either by listing the information in their annual report) and then some make it difficult.

Are you aware of a website that lists this information or do I have to research the quarterly/annual filings and if not successful, then contacting the investor relations group at the REIT in questions.

Thanks

Q: A little while ago, Stephen asked a question about some Reits and BSR was mentioned. In your answer, you suggest it was not cheap, based on 22x cash flow. A couple of questions: would other matrices also show it to be not cheap? About P/E, it shows at 5 on my Portfolio Tracking, but on the web page from my booker, it says 12.49....why the difference? Last, while I do like the business focus of BSR, CAP Reit is often mentioned favourably for this sector; can you briefly compare these 2 and suggest which you would prefer, and why? Thank you for your excellent service.

Q: The reported 'dividend' yield for BPY is reported as 9.2%. However, am I correct to say that this is not a 'dividend' like a dividend from the Royal Bank.
Is the BPY dividend actually a blend of interest, dividend, return of capital and 'other' income? Please confirm this observation to be correct or not.
An amateur DIY investor such as myself can be fooled if not careful by simply looking at the 'dividend yield' as reported in daily stock quotes.
What got me questioning the yield was the old adage "if it sounds too good to be true, it probably is". As mentioned in my previous question, the high 'dividend' put up a red flag.
Regads,

Q: Hi
I want to have your outlook on both IIP.UN and CAR.UN post pandemic.
How are their balance sheet during the pandemic? Are they badly impacted during the pandemic or were they able to still get the renters pay their monthly rents.
Which one would you buy between these two now?
Do you think IIP.UN will reach its new high of 18$ in 2021?

thank you