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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: I would like to reduce my exposure to REITs and reallocate to other sectors. Considering selling some of these 6. I have a long term focus - 5+ years, looking at total return over that time. May I have your opinion of these in order from best to worst for total return for a long term hold. I'm assuming all will get through this economic disruption OK. AP.UN, GRT.UN, HR.UN, PLZ.UN, REI.UN, SRU.UN. Thanks.

Read Answer Asked by Dan on May 12, 2020

Q: Hello 5i Team
I am comparing the retail REITs and the two distinct groupings in the sector:
Group 1 - REITs majority owned by parent operating company and the majority source of the REIT's income. These would be Choice Properties REIT (CHP.UN), Crombie REIT (CRR.UN) and CT REIT (CRT.UN).
Group 2 - REITS with a large diverse portfolio. These would be First Capital REIT (FCR.UN), Riocan REIT (REI.UN) and SmartCentres REIT (SRU.UN).
The questions I have are:
1 - What would be your ranking of the REITs in Group 1 and your ranking of the REITs in Group 2?
2 - Which is the better Group to select from Group 1 or Group 2?
3 - Any other retail oriented REITs I should be looking at?
Thanks

Read Answer Asked by Stephen on May 08, 2020

Q: Hi 5i,
Would you recommend buying SRU.UN at the current price for a 5 year minimum hold? Same question for JPM please.
I currently have BCE and considering adding a new position in TMUS, Thoughts on the addition of TMUS at current price for a 5 year minimum hold?
Thank you
Terry

Read Answer Asked by Terry on May 06, 2020

Q: I own REI.UN and SRU.UN

Today I noted, from my broker's notes, that although FCR.UN was able to collect 70% of the gross rents for the month of April, REI.Un and SRU.UN collected much less at 54% and 64% respectively.
Is it advisable to sell REI.UN and SRU.UN and buy FCR.UN ? Will this reduce risks related to Covis 19?
Thanks

Read Answer Asked by Terry on April 23, 2020

Q: Hello
SRU.UN is involved in shopping centers, office buildings, high rise and low rise condominiums, rental residences, seniors' housing and self storage facilities.
Do you know what percentage of this REIT's income is derived from retail tenants, condominium/rental residences and storage facilities?
The dividend was not cut during the 2008/09 financial crisis. Do you think their dividend is vulnerable this time?
Will you average down at today's price or just hold?
Thanks for your advice.

Read Answer Asked by Terry on April 17, 2020

Q: Hey, First time asking a Q ever..

For BPY.UN, are all their leases longer in nature and how much in danger are they in cutting they divvy? I would guess some of their tenants might be in danger if this keeps up but the contracts should be solid. Thoughts on risk/return for BPY.un?

Same questions for SRU.UN.

Thank you

Read Answer Asked by Bruce on March 20, 2020

Q: Hi Peter and Staff

If we end up in a longer (say 1-2 year recession) can you provide any comments as to which of the following could suffer most or least from vacancies or unpaid rent based on their tenants ?

FCR.UN, SRU.UN,NWH.UN,HR.UN and REI.UN

I guess I am also asking which one (s) appear to have been beaten up too much in relation to the others and why

Thanks for all you do
Dennis

Read Answer Asked by Dennis on March 20, 2020

Q: Wondering about where to contribute and add to next . I have a TFSA and RSP self directed ( no unreg'd trading accounts )

Started investing in the TFSA 1st so my RSP is far behind it in $ levels . Now that I have contribution room , plus more on Jan 1 should i go with ..

Topping up EMA in my RSP , would be heaviest weighting if so with TD on top right now .
Topping up RY , NFI , MFC or NPI ( all being medium weight with TD and AQN on top )
Or adding BEP or SRU as new holding to either TFSA or RSP , leaning towards BEP myself .

Thanks

Read Answer Asked by Chris on October 28, 2019

Q: Good Afternoon,
I am a very diversified investor. having stock in almost every sector and not over invested in each sector. In the sector of real estate I am only 5% invested and I am looking to add one stock out the 5 that I have mentioned. I understand that BRE is more of a service company in real estate but it is still class in the real estate sector. Can you recommend me which one of the 5 should I invest in?
Thank You.

Paul

Read Answer Asked by Paul on May 14, 2019

Q: Greetings 51 Team,
A number of questions recently on REITs. Not surprising; although they tend to be boring, they have (as a group) held up nicely on both a 1 yr and 5 yr basis and offer a good yield.
However, 'all REITs are not created equal' and 5i has recently recommended DRG, HPMP, GRT, and HR. I own AP, SRU as well as XRE and have not seen a lot of discussion on those names.
Plse explain why 5i would recommend one REIT, and in particular the four above, over another and, if you care to comment on AP and SRU.
TY
SP

Read Answer Asked by Steve on February 04, 2019

Q: Hi 5i,
I have a full position with SRU.UN in my income portfolio.
I'm planning on selling half and buying another reit for more diversification. Could you provide a reit suggestion that would work with SRU.UN?
Or 2 reits suggestions and sell SRU.UN?

Thanks Steve


Read Answer Asked by Stephen on December 17, 2018

Q: I have held RUF for a few years, bought mainly for income with the view that the apartment space should be somewhat stable (?). With the buyout offer last spring I sold half and bought SRU (which has done well). Now that RUF has no offers, the price took a dive and the yield is back up. I am considering selling SRU and putting the funds back into RUF. These are held in an RSP, so taxes are not an issue. Could you comment on the following for both RUF and SRU:
1) the payout percentage
2) the debt levels and how they compare to their peers
3) the price to NAV
I like that SRU has a large Walmart base as well as some of their proposals to reduce retail exposure - but execution is a factor, and it will take time. Based on my "stable income" orientation would you suggest selling SRU and buying back RUF, or just sit tight? Or something else?
Thank-you

Read Answer Asked by grant on August 28, 2018