Investment Q&A

Q: I am looking at your answer to evaluating investment quality of REITS in which you note three important ratios to consider - Interest coverage ratio (EBITDA/interest of 3X or higher)), debt to equity - below 1.0x) and NOI or net operating income. I see you give EBIT margin and Net Profit margin in your company profiles but I was wondering if it was possible to calculate NOI from these tables. Are there any other important ratios one could use to compare various REITS. Finally, how would you rank the three REITS I have noted here. Thanks.

Q: I currently own these two REITs and they have, as expected, performed very poorly in 2022 - both down more than 30% YTD. Against the backdrop of continuing rising interest rate would it be advisable to take the losses and exit the REIT sector for now?

At present prime is at 4.7% (and continues to rise, latest rumour is another 0.75% or even 1% increase), while GRT.UN yields 4.2% and DIR.UN yields about 6% these two REITs are hardly enticing investments. What is your advice on this situation? Thanks.

Q: Hi - All other factors aside, would you Buy, Hold, or Sell these stocks based on your outlook for next year or so?

Q: I have never owned a REIT but started looking at a couple. In doing so I realized that I really don’t know what to evaluate in a REIT (beyond type of asset - land, commercial, residential, specialty) and things I normally see as red flags may not be here. Can you tell me a few of the most important fundamentals to look at when comparing REITS (negatives to watch out for specifically, and positive indicators). For example my initial concerns were steady increases on common shares outstanding (seems acceptable and typical of all REITS) and what debt levels are acceptable. If you could tag your favourite REITS today I would appreciate. I have only looked at LAND and IIPR so far.

Q: I am looking at investing some funds into real estate and do not find any questions re net.un. Was wondering if you could provide a comparison on the three listed as to which may be preferable for a conservative income focused investor. Thanks.

Q: Thank you for answering my question on NAV.
The unanswered part of the question is "of the 3 is DIR.un still your favourite. Lastly please rank by risk."

Q: Good afternoon,

I'd like to add a position (or 2) in each of the following sectors: REIT (TCN or GRT.UN or CAR.UN or a better idea), energy (CNQ or SU or a better idea) and industrial (already own WSP, TFII, XYL, TT and could add to one of these or consider a better idea). I could also use a utility suggestion (either add to FTS or AQN or add BEP.UN). And, I'm always looking for an opportunity to add BAM.A to my portfolio. In what order would you add or take new positions given the current environment being favourable to a given sector and/or a good entry point for a particular stock.

Your service is always greatly appreciated, thank you,

Lisa

Q: Hi, for higher income and safety of distribution could you please list 4 or 5 attractive REITS. Growth is not a concern, just income and relative security. Thanks.

Q: Hi,
What 5 or 6 uncorrelated Canadian companies & REITS would you pick for a "HIGH YIELD" portfolio for SAFE INCOME?

Thanks

Q: I am thinking of harvesting a tax loss in CAR.UN. Had bought this to protect against, or just dampen, the abrasive effect of inflation. I do not need a loss for tax year 2022 so it would be for use in some future year. I could use the proceeds to buy a different REIT , as a possible (probable?) protection against inflation.
1- Am I correct about REITs being a probable protection against inflation?
2- Although interest rates will be higher going forward, I assume inflation also dampens effect of debt. Is this in fact true?
3-Would you suggest an industrial REIT over a residential? Please suggest names you favor. I like ones that are inter-listed as I have only US$. ( TCN, Granite GRP in the US and others). But ones listed in Canada only are also just fine.

Q: Has your thesis changed about these industrial reits or reits in general? The industrials suddenly seem to have lost their shine.

Q: Can you please compare these two industrial Reits. I own some of both but would just like a relative comaparison and maybe which one you like more and if you think it’s worth owning both. Thanks

Q: why the big drop in GRT.un today - about 4% (almost 4$)

Q: Can you suggest 2-3 Reits for a RIF considering timeliness, safety, dividends and modest appreciation.
Thank you

Q: hey guys hope all is well .in the current market with all the uncertainty would it be better to have an industrial reit or a residential reit or no reits at all if so do you have a favorite

Q: What are your thoughts on this company? To quote "FCR remains one of a small number of REITs trading at meaningful valuation discounts versus pre-pandemic (P/NAV 74% versus 86%, P/AFFO 16.0x versus 20.0x)" I understand its debt is high but has been reducing it aggressively pre pandemic.
I know you like GRT.UN and CAR.UN, wondering where FCR ranks in relation to these 2.

Q: Would you please rank these 12 REITs for future growth prospects, where 10 is the best prospects & 1 the worst. Also would please indicate what REIT assets contribute to future growth & those REIT assets that have very little future growth. Thanks ... Cal

Q: Why did Grt jump so nicely today?

Earnings were out a few days ago so that should be old news.

Sheldon

Q: I have not seen any questions on Starwood for a while. It has a good yield. Is it a buy at these levels?
Thanks
Ian

Q: Hi 5i Team - Could you provide two or three top picks in each of the following sectors: Real Estate, Consumer Staples, Financial, Industrial. Any market cap is fine but with a focus on mid cap. Also with a focus on Canadian Equities.
Thanks.