Investment Q&A

Q: Have risks regarding the takeover increased lately, what concerns need to be watched? As a shareholder what action do you advise at this time? Same question on both of these companies.

Q: Hello 5i Team
Thank you for the new update on Interrent REIT.
Reviewing the new report on Interrent REIT, the Peer Relative Evaluation section compares Interrent against ten REITs, however only two of the ten REITs (CAR.UN & NVU.UN) are in the residential apartment sector.
1 - Please comment on how companies are selected for the Peer Relative Evaluation section.
2 - Would it be more appropriate to compare Interrent against the major residential apartment REITs (BEI.UN, CAR.UN, KMP.UN, MI.UN, MRG.UN, NVU.UN) than to the Office, Industrial, Retail REIT section?
3 - Also given NVU.UN is subject to a takeover, is this a reasonable comparison?
Thanks

Q: A different newsletter commented that the deal with Starlight could get scuttled if even one of the Northview lenders does not consent. Thus the discount from current unit price to takeover price. Would you sell now? or do you see the deal happening? Thanks Ron

Q: Further to this mornings's questions on Northview Apartment REIT and its new entity - the Northview Canadian High Yield Residential Fund website is now active.
https://www.northviewfund.com/
All the documentation regarding the new entity is available on the website.

Q: Peter; NVU.UN is ,all things being equal, being taken over by Starlight,aka Mr.Drimmer. At the same time there is an IPO backed by Starlight, called the Northview High Yield Residential Fund .class A shares, to yield 10.5%. Which, if qualifies for the dividend tax credit , would be attractive. Have you heard of this IPO and how is it connected to the takeover? Thanks. Rod

Q: I have put together a portfolio of 11apartment and industrial REITS along with ZRE when the market was very low in April. I excluded NVU.UN because I thought it was going private and not going to be a public trust. Am I wrong here? Will the identity trade? Thanks in advance david

Q: Has the dividend on the new entity been announced yet? If so, how much and if not, when do you expect it? Thanks.

Q: Northview Apartment REIT is currently being purchased by Startlight Group at a price of $36.25 per trust unit. Why is the stock trading at $33.45? Is there concern the deal will not close?

Q: Hello 5i Team
Northview REIT (NVU) has issued the Management Information Circular for the proposed takeover of NVU by Starlight and Kingsett Capital at a price of $36.25.
Please advise on the following questions:
1 - As no other offer came forward during the go shop period, I am assuming the $36.25 per unit offer will be the best and final offer current shareholders will receive.
2 - Which is the best option to select: OPTION 1 —ALL-CASH ELECTION or OPTION 2 —HIGH YIELD FUND SUBSCRIPTION ELECTION and if Option 2 is selected which percentage of the Unit Election should be selected (refer to the Letter of Transmittal and Election Form).
3 - Reviewing the Management Information Circular, the High Yield Fund looks like the original Northern Properties REIT prior to the 2015 takeover of the True North Apartment REIT. Essentially it looks like Starlight Capital (Mr. Drimmer) is buying back what they sold in 2015. What is 5i's view on this?
4 - I noticed Credit Suisse Securities (Canada), Inc. has become a 9.95 % holder of NVU - do you think they are playing the arbitrage between their purchase price and the offer price?
Thank you

Q: Northview is now getting close to takeover price. I am thinking of cashing out and topping up one of the partial positions I have in PPL, CSCO and DIS. Make sense? - any preference? or better suggestion?? Thanks Jim

Q: Long time holder of NVU.UN with almost a double on the share price. Do you think the cash deal still happens?.....and could you make a few suggestions to replace NVU.UN. Distribution on the replacement stock (or REIT) is important but also looking for some longer term price appreciation. Bit of a "crystal ball " question but looking for a place to start doing some research. Thanks Ron

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: Nvu.un is about 10.00 below the offer the purchase .
I know it not done until the check clears but trading seems to say the deal buy out may not happen
Any rumours on the street ?

Q: Hello 5i Team

The following companies have take over proposals in place:

ACI - offer of $33.50 closing price March 19 of $31.93
NVU.un - offer of $36.25 closing price March 19 of $27.08

Questions are:
1 - what are the likelihood of these transaction to close?
2 - are there other potential opportunities in the market that may be attractive?
3 - the Northview transaction looks attractive, given the distribution was never cut in the 2015/2016 oil downturn (although the share price went down to $16).

Thank you

Q: NVU.UN is trading at 31.54 and the takeover price is 36.25. I can find no info that the takeover is off. Can you offer any insight, advice on this situation?

Q: Could you expand on the NVU.un deal on the 36.25$ offer and its fall to 33.00$ -what are the possibilties etc?

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: 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: Could you comment on today's announcement that NVU.UN is to be acquired. Do you see the possibility of competing offers?

Q: Hi,

In an otherwise well balanced portfolio, with a slight tilt towards growth I do hold the above REITs for income. As part of a new investing philosophy (to me) I'm aiming to reduce my equity positions from 33 to 23 over this year. Thus, I need to sell one of the above and re-invest the proceeds in the other three. With an eye towards income preservation (ie. sustainability of dividend) and growth, which of the above do I sell?

Cam.