Q: I have owned this REIT for sometime and am very pleased with it but lately, it has been going down. Can you shed some light on why this may be happening? Should I add to it at this time? I know it is one of your favourites. Thank you for your great service.
Stella
Stella
5i Research Answer:
Units fell every day last week, and are now down 11% for the year. But there was no news, and in fact there has been no news for nearly a month. Interest rates have been bouncing around, but the decline is likely related to concern on the Canadian economy, which is not doing well. We have also heard reports that industrial storage sites in the US are booming, as companies try to beat potential US tariffs. This could be worrying investors of Canadian sector REITs if they view some business shifting south of the border. But this impact is likely to be temporary (there is only so much US capacity available). We would remain comfortable with DIR.UN overall.