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TELUS Corporation (T)
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Granite Real Estate Investment Trust (GRT.UN)
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Dream Industrial Real Estate Investment Trust (DIR.UN)
Q: Hi Team. With interest rates on the decline I'm thinking REIT's will become more popular. Also concerned with Telus's struggles so thinking of selling Telus and purchasing equal amounts of Dream Industrial REIT and Granite REIT with the sale proceeds. Would you have any concerns with this?
5i Research Answer:
Telecoms will have many of the same influences, in particular interest rates. We would not expect miracles in such a switch, but Telus is struggling somewhat and the industrial REIT space should be able to grow faster than other REIT subsectors. We would be OK with such a move on an understanding of the sector and size shift involved.