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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: 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

Read Answer Asked by Stephen on July 21, 2020

Q: What is your opinion and outlook on the above noted REITs? Is now a good time to buy? If you where to get into REITs now what order would you put the above companies in?

Read Answer Asked by Frank on May 28, 2020

Q: Does you portfolio allocation as referred to country investment recognize that some companies despite designated as domestic (Canadian) have and derive significant income from abroad ?
Therefore these are more diversified by the location as it appears in the Portfolio Analytics summaries.Basically the summary understates the total portfolio diversification by the country .I give the two above companies as an example but there are more companies to which this would apply.

Read Answer Asked by Miroslaw on May 27, 2020

Q: These 4 have been beaten badly , way more than the TSX drop. What do you think about their prospects to go bankrupt ? Can you rank them from the lowest to highest risk ?
which ones will have their cash affected more ?
Thanks

Read Answer Asked by Alejandro on March 26, 2020

Q: Hi guys

Thanks for all you great information.
I have held both Morguard Corp (both MRC and MRG.UN) and Mainstreet Equity for quite a time period and done quite well in both, more than doubling my initial investment.
All these stocks have always traded at substantial discounts to net asset value, which has given me downside risk protection, and at one time I thought they might trade closer to NAV. In the past year I have heard from multiple BNN guests that Rai Sahi who runs Morguard, and apparently owns more than 50% of Morguard, could pay much more attention to delivering shareholder value, including moving the share price closer to NAV. So my question is, looking 5 years out, which company, MRC or MEQ, do you feel: 1) has better MGMT, 2) is in the better real estate sector to deliver value and 3) is most likely to see the share price come closer to NAV. A last question would be do you think either company is likely to receive an offer and be taken over by another REIT or pension fund, and if so would it be at NAV or above?

Thanks in advance

Stuart

Read Answer Asked by Stuart on January 22, 2020

Q: Hi. I have held this apartment REIT for some time with about 7% capital loss. The distribution is quite low so that is not helping my overall return either. Disappointing in that Apartment REITS have been generally doing well. Any hope the Morguard management team will get some better returns for the REIT shareholders. Perhaps a recent purchase of a luxury Chicago building is an indicator of better things to come? Hold (patiently) or sell? Thanks.
Gerald

Read Answer Asked by Gerald on January 17, 2020

Q: I would like to add one of AP.UN, MRG.UN, or SMU.UN to my REIT holdings. Can you rank them in terms of which one will likely provide the best combined return (on yield and growth) for a three year hold? Or if there others I should also consider? Thanks.

Read Answer Asked by Victor on May 21, 2019

Q: I would like to invest in a REIT geared toward residential apartment rentals and have narrowed it down to CAR.UN and MRG.UN. With a smaller market cap and lower payout ratio, would you agree MRG.UN has a larger runway for growth?
Thanks,
Curtis Q

Read Answer Asked by Curtis on May 08, 2019

Q: I have the above Reits which I would like to consolidate into much smaller number. Appreciate your opinion on your preference of which ones I should keep/switch to, based on expectation of total return over 3-5 years period.
Thanks

Read Answer Asked by Saad on January 15, 2019

Q: Hello Peter
I am newly retired and looking for a stable replacement for my AAR.UN stocks. Iím looking for a steady income dividend type stock that I won't have to worry about. Wondering which of MRG.UN or BPY.UN would you recommend , and why ? Both are trading below book value.
Really appreciate your thoughts .
Thanks.
Joanie

Read Answer Asked by Joan on April 06, 2018

Q: I understand that CAR.UN has better overall assets than MRG.UN, but the difference in valuation seems ridiculous. MRG is trading at 80 percent of NAV and 14 times 2018 AFFO, while CAR is 105 percent and 21.8 times , respectively (all per TD). It seems to me at this valuation, Morguard should just take over the chunk of MRG it doesn't own. Thoughts?
Thanks.

Read Answer Asked by Alex on December 01, 2017

Q: I'd like to know what you think of MRG's Q3 report that came out today. I would especially appreciate your assessment of (1) potential growth and (2) your calculation of Payout Ratio using AFFO (not FFO, as they do, which tells me nothing without knowing the maintenance expenses). I must admit I get very suspicious of reits that only provide FFO and not AFFO.

Read Answer Asked by arnold on November 01, 2017

Q: Over the past 5 years, MRT.UN is down to about $14 from its highs of $19 +, whereas MRG.UN is up to $15.60 from just over $10. Is this difference all down to the U.S. property market being better than Canadian in terms of growth ? Is that likely to continue ?

What is your take on these 2 REITS and on the sector generally ?

Read Answer Asked by Don on October 30, 2017