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Boardwalk Real Estate Investment Trust (BEI.UN)
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Crombie Real Estate Investment Trust (CRR.UN)
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Granite Real Estate Investment Trust (GRT.UN)
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Killam Apartment Real Estate Investment Trust (KMP.UN)
Q: I hold these REITs in a diversified portfolio. They have not been performing and are mostly close to 52 week lows. Do you see upside in these? What is your view on holding REITs like these? Should I be switching them out for something else or am I being the typical investor considering selling at the bottom :-)
5i Research Answer:
The residential sector has been weak, with market yields moving up rather than down with the Bank of Canada rate. Some concern exists over lower immigration into Canada over the next few years. Canada's population may actually decline. But...GRT.UN is different and we think fairly solid. The others do not concern us unduly, as we think yield support will kick in soon, and sentiment could shift if market rates do move lower. We would be fine holding this group of four a while longer.