Investment Q&A

Q: Hi
How would you rate these REITs based on debt, income security and growth? I am trying to determine where to put some cash in my TFSA, where I ger a good income, but not having to worry about the dividend being cut. Thanks, Len

Q: "joint venture between GIC and Dream Industrial Real Estate Investment Trust will acquire all of the assets and assume all of the liabilities of Summit and the unitholders of the REIT (the "Unitholders") will receive $23.50 for each outstanding unit of the REIT (each, a "Unit") they own in cash by way of a special distribution and a redemption of Units, subject to applicable withholdings."

If I sell SMU.UN now I will have a very significant capital gain in 2023,what happens if I keep it until the special distribution ?I suppose it will also be a capital gain?any other choice here ?

Q: Is it a good time to start buying REITS or should I wait until 1/2 way through next year when we know more about this recession that everyone is predicting?

Can you recommend 1 or 2 CDN and 1 or 2 US for a long term hold?

Q: Similar to another question today, I am thinking of selling Summit, but waiting until the new year to delay the tax hit on my capital gains. But - isn't the buyout price $23.50? With the current stock price at about $22.50, there should be about a $1/share gain by waiting for the buyout, compared to about 30 cents of lost dividends between now and then. Am I missing something? Do you think it is better to sell immediately in the new year and move into something else, or wait for the actual buyout?
Thank-you, Grant

Q: Hi there,

I am considering selling part or all of my holdings in Summit. Can you tell me if they will continue to pay the monthly distributions until their deal closes in March?

Thanks!

Q: Could you comment on the sale of Summit, including:
1) is this largely a done deal?
2) are shareholders being bought out for cash, with no option to obtain Dream
Ind. shares?
3) proposed closing date
4) do you think other offers might be forthcoming?

Thank-you, Grant

Q: I own grt, smu and dir. I notice that dir and grt are up very strongly today (so far) coinciding with the take-out of smu (announced today). I know you don't give personal advise, however, in principle, do you think it might be time to sell dir and especially grt while their share prices are inflated because of this take out? Perhaps buy them back later when their prices come back down?

Q: Would there be a superior offer coming on this acquisition by DIR.UN?

Q: I own SMU.UN which as announced today , will be bought by GIC and DIR.UN . It is up today by 26%. Would you sell it now or wait until the deal goes throught for a futher upside of about 4%

Q: Peter; I assume this is a “ friendly “ deal - plus when is actual closing? Hope it’s 2023 re taxes. Thanks. Rod

Q: I am concerned about the European holdings and the auto industry in a recession. So, I am considering selling Granite and replacing it with Nexus or Summit. because I still like the industrial space What do you think? 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: 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: Which of these two would you purchase today?

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: My portfolio is significantly over-weight tech and currently paying the price. Semi's (AMD, NVDA, SMH) had propped me up but not anymore. That's the bad news, good news is i have a sizable portion of cash to deploy. Over the next few months, where would you suggest deploying new cash? Which stocks, etf's, or sectors have been unjustly hit the hardest?
The rest of my portfolio is anchored by XIU, BAM, BIP, ENB, CNQ, etc.

Q: I am trying to get an idea on the revenue growth potential of SMU.un. My info is based on the 2021 annual report.

The company seems to have a good portion of its industrial lease renewals coming soon. In fact, 25% in 2022, 40% in 2023, and 29% in 2024. In a very tight leasing market, where vacancy rate is <1%, such as GTA, GMA, these lease renewals could potentially bring in 20%, 33%, and 29% (corresponding to each of the three years) to the overall revenue without any major added operating expenses. Theoretically, do you foresee the current P/E at about $20 justified or understated on this growth potential?

Thanks,
Roger

Q: I hate the idea of losing money in a TFSA for a number of reasons that are probably best dealt with in therapy. However, let’s say that we knew for a certainty that we were going to have a recession of unknown depth and duration starting in 2023. Come 2025 do you think you would have sooner held BCE, SLF, ENB, BAM.A, SMU.UN, and L (maybe 4% average yield with avg. PE in low 20’s) in a TFSA, or a 2 year GIC at 3%? Seems to me if a recession is deeper and longer than average I’m glad I had the GIC, if shallower and shorter, the equities?

Q: Hi
Am I correct in understanding that REITs are a good hedge against inflation? All of these REITs have been decreasing- some more than others. Are there any that you think will continue to be at risk in a rising rate environment? would you add to any during this most recent decline?
thanks

Q: Good morning 5i
I would appreciate your comparison of these 2 industrial reits. Is there an appreciable difference?
Thank you