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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: Hi Guys
Dream Industrial has been drifting lower all year, and hit a 52 week low. Seems to get no respect and yet everyone says increased Industrial space for logistics centres and data centres etc. are/will be needed. Is anything changed with this company fundamentally? Do you still like it into 2025?

Could you inform me what a realistic book value a share would be? And finally do you see it, like Pure Industrial, as a likely candidate for a takeout by a pension fund or private equity like Pure Industrial?

Thanks

Stuart
Read Answer Asked by Stuart on December 20, 2024
Q: A few weeks ago you wrote: "REITs are quite difficult right now due to how weak the housing market has performed and recent news that the Government of Canada will slow immigration." I find this interesting as from CMHC "Canada needs about 3.5 million additional housing units by 2030 to restore affordability." Overall Canada only had 240,267 housing starts in 2023. So there is still a massive shortfall as the 3.5M works out to about 580,000 per year out to 2030. The numbers don't align with the lower prices seen in REITs. Thoughts? Thanks
Read Answer Asked by Mark on December 18, 2024
Q: InterRent (IIP.UN) announced today that they are stopping their DRIP and are going to ramp up their share buy backs because they feel the units are currently undervalued. The most recent results look pretty good, with growth in occupancy rates, average monthly rent, FFO and AFFO, as well as a dividend increase. Debt to GBV looks OK at about 38%. Yet the unit price has dropped from roughly $18 a few years ago to just over $10 now. The units are trading at about 18 - 19 times AFFO. How does that multiple of AFFO compare to historic levels? Just wondering if this is a good buying opportunity on a cheap stock of a business that is performing pretty well, and now has a yield of roughly 5.5%.
Read Answer Asked by Dan on December 17, 2024
Q: IIP today announced a stronger intention to buy back stock as they feel it is underpriced I assume they would be particularly interested if and when the stock price was below NAV. What is the NAV of interrent? Do you think they would buy stock even above NAV? Do you think this will be a meaningful number of shares purchased in 2005?
Read Answer Asked by arnold on December 17, 2024
Q: Hi Peter & 5i staff

Thanks for answering my recent real estate sector question in which you suggested that Granite could help diversify my sector holdings.

According to a recent Globe and Mail article, would you agree that Granite "will experience tailwinds because it derives most of its revenue from US based assets"? The article focused on how to manage Trump 2.0.

Thanks as always for your timely responses.
Read Answer Asked by Jerry on December 17, 2024
Q: Seasons Greetings to all at 5i, and fellow members as well!

Our Real Estate holdings include DIR.UN, FSV (thank you 5i for this stellar pick!), and XLRE. Portfolio Analytics indicates that we should increase weighting. I was considering adding to DIR.UN, or starting a new position in CHP.UN. If this was your portfolio, what would you do, or is there even a better opportunity? Thanks as always.
Read Answer Asked by Jerry on December 16, 2024
Q: What are your current thoughts regarding plaza reit as an addition to the income side of my portfolio? If negative, do you have any suggestions for stable high-dividend Canadian stocks that I can investigate? thanks, J
Read Answer Asked by John on December 13, 2024
Q: I've been looking to REIT's with the intention of adding a level of potential inflation protection. CHP.UN seemed to me like a good REIT that would appear to have some resilience - even if Commercial Real Estate in general would take a hit. However it's the "shopping centers anchored by supermarkets" description that gives me pause. The "supermarket" part gives me a degree of comfort. The "shopping center part".....not sure.

Are you able to give me your always valued opinion please?
Read Answer Asked by James on December 12, 2024
Q: Please explain the drop in TOL stock price when all the metrics look are looking good (as far as I can tell).

Does profit taking explain a 5% drop? What would be the logic in selling the stock of a company that has tailwind ?

Finally, if systematic, would a good contrarian strategy to buy those dips?

Thank you very much, especially for your patience with member's layman questions.

Merry christmas to all hard working staff at 5i Research
Read Answer Asked by Jean on December 10, 2024
Q: Based on the information in the market at what level would u recommend a disposition of ere.un to move forward if not interested in owning the resulting entity after divid payment? What is likely to be the final value to current shareholders?

Are there any reits u feel particularly positive on to deploy resulting funds into for 2025 and if not yr favoured sector to deploy funds into in 2025?

Generally reit performance has been anemic this year n not certain if this will change in 2025.

I
Read Answer Asked by Craig on December 10, 2024
Q: Greetings:
I have held the above in my RRIF for quite some time, and under water. The interest is adequate, but eaten up badly by the loss of capital. I thought that as interest came down it would benefit the MIC'S, but not so!! What is the outlook for this one? Under what conditions would it improve? Is it just poor management?

Thanks, BEN.
Read Answer Asked by BEN on December 10, 2024
Q: In a recent answer about DIR.UN you mentioned reports of inventory buildups in the US in anticipation of potential tariffs with the incoming administration. Would PLD be a good way to take advantage of this possible trend? Between PLD and DIR, which REIT do you prefer for the long-term (5+ years)?
Read Answer Asked by Patrick on December 10, 2024
Q: I hold CSH and CRR. The later being a very small position (1%) I'm looking to consolidate. Could you rank these 3 or do you have a better REIT to suggest?
Thanks
Read Answer Asked by Robert on December 06, 2024
Q: 5i has been positive on CAR.un for a long time. You are not alone. It seems to be a long term favourite of many if not most REIT analysts. I have held it since 2019 and am down about 9%. It is about $15 below its 2022 high and is trading at 2018 levels. I bought it for income. Other residential REITs have a superior distribution Every day I look at it and say to myself "why am I holding this." What do you see in the future of CAR.un that makes it a buy or even a hold? If I cash out, what would be your next best favoutite with a better distribution?
Read Answer Asked by Ken on December 04, 2024
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