Q: Hello 5i Team

Finally Melcor Developments (MRD) has offered to take Melcor REIT (MR-UN) private at $4.95 with a closing date of late Q4 2024.

I note there is a one month "go shop" for MR-UN to possibly find a better deal, however with MRD owing ~55 %; MRD being the manager of the REITs properties; and the year long Strategic Review Process - is it even a possibility that MR-UN could find another buyer?

With MR-UN trading ~$4.80 should I sell my holdings and move onto another REIT? With only a 3 % difference I think there are other opportunities in the REIT space to replace MR-UN.

What would be 5i top names in the REIT space to replace MR-UN (can be a different sub-sector from MR-UN's operations).

Thanks

Q: In the US last week, there was a landmark agreement with the National Realtors Association that should change the way commissions are determined across the board. There should be more competition with lower commissions. Can you comment on how the decision and the new direction might impact the housing market here in Canada and what impact it may have on companies in the real estate buy/sell market? What companies might be affected? How big might the impact be? Who could be winners and losers?

Q: With a record immigration numbers and very few pre-construction sales due to the spook that high rates have put into real estate investors, there is a massive shortage of new housing units that has yet to be felt by the market (in my opinion). I think this is a uniquely Canadian problem and wonder if you see any companies poised to outperform when rates are falling and housing starts begin to pick up? Could you name 3-4 companies that would benefit in different ways when the shortage of available housing starts to translate into a rapid increase in units built?