Investment Q&A

Q: HR has taken a big hit and now has a nice yield of 7.4%. Any danger of a cut and would you add here? Thanks Ron

Q: Hello,

In what type of account would this be most tax efficient please?
The $USD component has confused me.

Cheers

Q: After this correction, is this one a good long-term hold for yield and 10% growth over 2 years?

Q: You last commented on this reit in 2018.
What is your current perspective.
Thank you

Q: Is Tricon's dividend an "eligible dividend" (i.e. subject to the reduced dividend tax rate) for Canadian investors?
Thanks!

Q: Can you comment of Boardwalk’s most recent quarter? I own Boardwalk (10% gain) and Interrent (75% gain). After starting their intention to diversify away from Alberta and Saskatchewan over a year ago, little progress has been achieved by Boardwalk. I’m debating selling Boardwalk and putting the proceeds to work in Interrent on a pullback since I already own a position. Would you be ok with this move? I would maintain the same sector weighting (10%) but it would be all in one stock and some ETFs vs 2 stocks.

Thanks,
Jason

Q: If they are taken over, what share price range do you feel the acqusition would be done at? Wondering if it is still worth purchasing given the recent price increase.

Q: I don't own a REIT in my portfolio. Do you think now is a good time to buy a REIT that may be beaten up and are REIT's looking good for the coming years with expected lower interest rates? What is your fav REIT you would buy right now, I like high ROIC if possible but open to your advice. Thx

Q: Hi Peter,
I am considering buying an industrial reit. I can't make up my mind between Dream Industrial and WPT. Which has the better growth potential and dividend increases?
Thanks for your advice.
Jane

Q: Good morning 5i
H&R owns a 33% interest in ECHO, a privately held real estate and development company that owns a portfolio of grocery-anchored shopping centres in Pennsylvania and Ohio. H&R receives updates on ECHO's results "one month in arrears".
Does 5i have any information on the quality of this portfolio, and/or on the financial strength of H&R's partners? Does 5i view ECHO as a solid piece of H&R's overall asset base, or more of a question mark?
Thank you for your input.
Edward

Q: Artis Reit's strategic review seems to have drummed up some interest from more than one party including management (Not sure if that means they would want to take the company private, perhaps you could elaborate on that as well). Management I believe has quite a bit of "skin in the game" and they seem to think the shares are cheap because they are trading so much below NAV. What is your expert opinion? Is AX.un a good takeover candidate? On a side note, how reliable are real estate NAVs? I assume the price of all the real estate is valued if everything was sold on a orderly basis so that maximum value could be extracted, as opposed to rapid liquidation. I guess a more precise question I am asking is, "Are real estate NAVs realistic or can they be inflated?" The fact that Artis is buying back so many shares makes me think management is confident that the share are undervalued. I guess the 5 cent per month dividend gets easier to pay when they reduce the share count.

Q: Hi 5i Team,
I am looking to fill up my RRSP with NYSE listed US dividend stocks and US Reits over the next few weeks. What would be your six top picks in order of preference for each? I am an income portfolio investor, looking for a decent dividend, with some growth potential with stocks that are currently "on sale". Also, if you could suggest one ETF for both US listed Div Stocks and US Reits. Thank you!

Q: Thoughts on the ETF REM? I know you are focused on Canada, but would I lose withholding taxes on dividends since this is the US? Likely would be held in RRSP.

thank you.

Q: NVU.un has dropped during the selloff to 35.95 from 36.25 price.For 60 days at 4.5% would this be good to park some money for 60 days

Q: Tricon announced results and to my untrained eye they look pretty good. One statement in the release caught my eye and am wondering as to the meaning of it. Below is the excerpt.

"In January, 2020, the company substantially completed its transition to an owner and operator of diversified rental housing in North America and therefore ceased to be an investment entity under IFRS 10.

As a result, effective Jan. 1, 2020, the company will begin to consolidate the financial results of controlled subsidiaries, including its investments in single-family rental homes, U.S. multifamily rental properties and certain Canadian multifamily rental properties, resulting in the introduction of these subsidiaries' assets, liabilities and non-controlling interests to the balance sheet of the company. Similarly, these subsidiaries' income and expenses will be reported on the company's statement of comprehensive income, together with the non-controlling interests' share of income.

The company continues to assess the impact on its consolidated financial statements of ceasing to be an investment entity, and final conclusions have not yet been made. The anticipated changes are material and will be applied on a prospective basis.

What does the fact that the company is no longer an investment entity under IFRS 10 and subsequent balance sheet changes mean for the company. Is this good or bad

Thanks Kenn

Q: How do you think this company will fair in the long term? Candidates for a buy out?

Q: In a response to Manish on Feb 20 you said occupancy was 98.2%. In reviewing SIA's report, this figure refers to LTC occupancy. It appears that total property occupancy was 87.9% in 2019, down from 91.7% in 2018. Could you clarify which figure is the appropriate one to use. Also, how does total occupancy and any yearly change compare to the other major players in senior residences.
Thank-you, Grant

Q: I understand that REITs and REIT ETFs are somewhat tax advantaged. Should these all be held in a registered account or can I hold some in taxable account. Thanks for your explanation!

Q: The news release talks about a "new" unit possibly being offered. I imagine this is likely to be less favourable than the current dividend. The current "trend " in real estate REITS seems to be to slash the yield and sell growth. Do you have any thoughts on this? Thanks.

Q: Just a comment about a previous question regarding increased cost for Reit's for insurance, cost are going up and whether increased rents will cover these increases could effect the bottom line. Below is an excerpt of a condo in BC.

The president of another Lower Mainland strata council is speaking out after getting served with a sky-high hike to his building’s insurance.
Mike Pauls lives in a year-old 26-storey building on Gladwin Road in Abbotsford — a structure so new, it doesn’t even show up in Google Street View.
In 2019, the building paid a $66,000 premium through insurance broker BFL. Last month, the strata council got its bill for 2020: A whopping 780 per cent increase to a premium of $588,000.
“Our jaws kind of dropped to the floor,” said Pauls.