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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,
I am looking at Slate Retail for my income portfolio. I had gotten sold off a lot and has a 15%+ (depending on the hour) dividend yield. As far as I look at it, they lease to mainly staple grocery stores and drug stores - Kroger for example. Can you address the risk of its tenant base and how risky it truly is? I also think they have a lot of debt as REITs do but it looks like they restructured and carry a big revolver they use. Not sure if you can unpack what's going on there and if it's a huge worry. Thank you
Read Answer Asked by Bruce on March 27, 2020
Q: Which company do you prefer in this environment - BYP.UN or HR.UN? Do any have a risk of a distribution cut or will it all work out more or less once the pandemic is under control?
Thanks for your service
Read Answer Asked by Ozzie on March 27, 2020
Q: What do you make of this insider selling, is it time to bail out of this security, Thanks

Between March 12 and March 19, chairman Louis Maroun sold a total of 312,000 units at an average price per unit of roughly $8.80. Proceeds from these sales, excluding commission charges, exceeded $2.7-million. After these transactions, this account held 773,629 units.
Read Answer Asked by Saad on March 27, 2020
Q: Hello 5i,
Could I have your thoughts on the above three companies in terms of outlook and dividend sustainability. Possibly rank them?
Thank you
Dave
Read Answer Asked by Dave on March 27, 2020
Q: Hello 5i Team

Could you please provide an update on the mortgage investment corporation.
Are they a reasonable source of higher yield interest income?
The four MIC and First National have suffered the declines similar to the market.
These investments would be held in my RRSP for long term interest income and not for capital gains. These would be a small portion of my high yield fixed income portfolio which includes corporate bonds and convertible debentures.
How did MIC fare in the low interest rate environment after the 2008 crash / recession as most stock charts only go back 10 years.
Thanks for the excellent advice in the last four weeks with all the market changes.
Read Answer Asked by Stephen on March 26, 2020
Q: I am wondering about the risk to APR's dividend, given that they have triple net leases..
The yield is over 20%. Do you expect that a number of tenants who operate the dealerships may go out of business or otherwise declare bankruptcy? If one assumes that this economic contraction should not last more than a year, and there would be pent up demand, would dealerships give up on the business or would most be expected to cut expenses and just try to get to the other side?

i realize they haven't increased their dividend, but at 20+%, its a moot issue.

Should I take a bite now or wait to see the next quarters results?
Read Answer Asked by arnold on March 26, 2020
Q: On March 16, in response to a question from Pierre, you said you were not interested in Boardwalk at $27 and recommended some of the higher valued residential REITs. BEI.UN is now down below $20 and has been below $16. At $20 it is trading at a third of book value and 40% of net asset value. It is a well run company and quite under-leveraged. Below what price does it become a screaming buy for a patient buy and hold investor?
Read Answer Asked by David on March 25, 2020
Q: Good day team. Re Granite; watched it reach a premium not long ago, now looks attractive for starting a position. Thinking of selling "some" Telus (still up after approx a decade hold & now 25% in one of my reg accts) and starting with GRT. How will cashflow be impacted now? Attractive on valuation now? Approx 5-7 year hold
Read Answer Asked by Harry on March 24, 2020
Q: In this environment,Real estate is often recommended along with Gold.Most REITS like car.un lcontinue to drop with the market.Is there worry that rents won’t get paid?
Seniors need to live somewhere so why is csh.un down 50%?
Read Answer Asked by Allen on March 24, 2020
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
Read Answer Asked by Yiwen on March 24, 2020
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?
Read Answer Asked by Stephen on March 24, 2020
Q: Hi,

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

Thanks
Read Answer Asked by David on March 24, 2020