Investment Q&A

Q: Hi Peter and Ryan.
This is an interesting time to invest. My current portfolio is down a lot but I decided not to sell it. I am in for a long term. I have been thinking about the changed world due to COVID-19. And I think about the world for a long term investment. In my personal opinion, the commercial real estate will be impacted because it is an opportunity for big companies to cut down office space and get employees work from home. The companies enabling people work from home will do well in short term and and long term.
I am going to contribute some money into TFSA. I hope to take advance of the market dislocation right now. I don't know how much more the market is going down. But I believe the good companies will come back. Can you please advise a few companies? Though my investment will be for a long term, it would be nice to see a rebound when the virus is in a control in the next few months.
Also, I have REAL (Matter). I am concerned if it is associated with commercial real estate. Please advise.
Thank you,
Yiwen

Q: Hello 5i Team

Northveiw REIT issued a press release Monday stating the "go shop" period has expired with no potential buyers offering a better offer than Starlight / KingSett Capital offer of $36.25.

Does this mean that the deal now has a higher probability (>90%) of going ahead once all the customary approvals (special meeting, Court of Queens bench, CHMC/lender etc.) have been met.

I also noted that now Starlight / KingSett can increase their holdings of Northvew from 13% to 19.9 % of Northview by purchasing shares on the open market. Do Starlight / KingSett have to issue "Early Warning Reports" each time they purchase shares?

Q: Hi,

What type of account (cdn, us, rsp, tfsa) should I hold reits in to minimize taxes?

Thanks

Q: PLease comment on Ceo's message this morning,Stated that no virus case so far. 1.5% position,p/p $18.76 .Add,sell or hold.Txs for u usual great services & views

Q: Why is iBCE down almost 10% today if it’s supposed to be a safe haven bond proxy& do you buy a full position here?

I also want your opinion on the REIT’s and why they have been demolished in the last 10 days, which names would you be buying now or later?

Please deduct accordingly

Thank you!
Nick

Q: If I look at REITS for quick valuations, I cannot use the same metrics (debt is high, they can trade well below book - especially now!) as with other companies. Leaving aside sector (and sub-sector i.e. oil vs. healthcare property holdings) related risk, what would be the key financial metric or three that one should look at and what are good levels for these? Thank-you

Q: I noticed that you have suggested adding a 4% position in ZRE. Do you have any concerns of how real estate will hold up in the face of all of this?

Q: Hello Peter and Staff

Today all rental housing stocks I follow (CAR.UN, KMP.UN, IIP.UN and TCN got hammered

I would have thought they would stand up well - rental shortages and future refinancings likely at lower rates ?

Does that logic make sense?

Any reason other than someone starting a rumour about mandated rent holidays?

Thanks and have a great day
Dennis

Q: I expected Canadian Appartment REIT to hold-on better, since people need a place to live and debt will get cheaper for the company. My sister, a lawyer, says that courts are expected to be understaffed, and so, landlords will not be able to force renters to pay. She thinks that renters who lose income due to a layoff will prioritize their car payment over their rent. I don't like that possibility one bit. I'm still positive on my position. If that makes sense to you, I'll sell and buy the U.S index. Thank you.

Q: BBU has fallen much more than the market in the last month.Actually over 50%.Are there any company specific attributes that would have contributed to this type of drawdown?Kim

Q: Hi 5iR Team, I'm totally confused by your recent addition of ZRE to the portfolios. It is my thought that REITS will be among the hardest hit of all sectors. Mortgages will not get paid, many small businesses will collapse, rents will not get paid, lack of mall shopping will mean some malls will go under, Sr's who depend on REIT income will be effected, etc., etc.. Why would I invest in ZRE? What numbers am I missing in this equation?
Thanks Team. Cheers, Chris

Q: Hi, what do you think of the coronavirus impact on CAE and CIGI?

Q: Looks like a good entry price here, do you feel the dividend is secure.

Q: Just read your March 17 Stock Market Update article regarding "Where is the bottom???" and the bear Market histories. Very enlightening.

I have been almost entirely in cash for over a month now and noted your portfolio changes. You mentioned Adding a new 4% position of BMO Equal Weight REITs ETF (ZRE) in the Income Portfolio. ZRE has been very steady since inception in 2010 gaining almost 40% over that time period until the recent unprecedented and understandable 37% drop since Jan 31.

My question is where should we park our cash while we wait out this terrible situation? Should we just leave it as cash? Is the BMO ETF a suggestion for a short term hold? I did read your Trade Rationale and was a little confused by your comment "remove some of the 'tail risks' that might be seen if there are issues at any individual company." Am I right in thinking this is in reference to ZRE being an ETF? Apologies for my ignorance.

Thanks for all you do

gm

Q: Good Morning
I am the holder of several bonds of the above noted REITs. The maturities of these bonds are from 2021 to 2023.

According to Moody's, REITs have a "low exposure" to Global Covid-19. However, I would like to get your own expert opinion whether these two REITs will be able to meet their obligations to the bondholders during the next three years.

As always I appreciate your comments.
Thank you.

Q: I own the above CIBC pref shares - what is the outlook- how/when will these be
redeemed by CIBC and at what value? They are trading at less than half face value- are they not guaranteed by CIBC

Q: Atrium Mortgage traded down some 10% on Thursday, March 19th for no reason I can find. Do you have any knowledge as to what may have happened?

Thank you for your market insights. They are very much appreciated, particularly in these turbulent times.

Don

Q: The REIT sector seems to have been decimated. Residential REIT's which usually hold up better have come down big along with the Industrial REIT's.

Would not be a good time to accumulate some of the residential REIT's in Canada. Why would these companies decline so much ? Are they being priced such that folks will not be able to pay rent forever ?

Q: Both these reits are getting hammered today,yield is up to 14% on both.Would you start picking away at these 2 now or wait?

Q: Both are tracking the last month in a similar downward trend. I understand why CPD is down with a predominance of reset preferreds and lower interest rates. Why is ZRE taking a hit with lower interest rates?