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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: This stock is currently trading in the low 2 dollar range, it just sold it's 11 properties in Quebec for an estimated net proceeds of 65 million (after paying off remaining mortgages). It is expected that this cash (not full amount as they are still operating the remaining properties) along with the additional 8.4 million they netted from the sale of a Cornwall property will be returned to share holders shortly in the form of a special dividend.

I would expect this dividend to be in the low one dollar range based on previous 0.87 special dividend declared after the sale of their Western Canadian assets for a net proceeds of 50 million (This is just a guess using basic math skills).

My question is this, do you believe that the remaining 11 Ontario and Manitoba properties plus the current cash balance make this a buying opportunity (i.e is it likely that there will be more than 2 dollars of cash to be distributed before the REIT winds up)? The management did admit in a news release that the value of the remaining properties was lower than their previous estimates based on current market for these assets.



Read Answer Asked by Maurice on January 24, 2019
Q: Hello 5i Research Team,
I would like to invest into a few REIT's. Do you have any recommendations for 3-4 of the top ones.
Thank you.
Read Answer Asked by John on January 23, 2019
Q: Good Morning,
Your thoughts on Killam Apartments developing new buildings and expanding into the Kitchener/ Waterloo area, thinking it might be a good long term hold with Laurier and U of Waterloo so close? Or do you have another REIT in your area you like? Thanks so much
Read Answer Asked by Darby on January 23, 2019
Q: I would like to buy a REIT etf for my TFSA, to capture some tax-free income, and trying to decide among XRE, ZRE and VRE. What would be your recommendation? Or is your choice none of he above but something else?
Read Answer Asked by M on January 21, 2019
Q: It's challenging to assess the earnings of REIT's if using the distribution payouts as a base of information. It would seem logical that payouts with a high return of capital would suggest weak results, yet individual price quotes suggest often refer to low P/E's.
Or maybe it's better to compare Return on Capital vs Cost of Capital?
Thanks from Randy
Read Answer Asked by Randy on January 16, 2019
Q: I have the above Reits which I would like to consolidate into much smaller number. Appreciate your opinion on your preference of which ones I should keep/switch to, based on expectation of total return over 3-5 years period.
Thanks
Read Answer Asked by Saad on January 15, 2019
Q: Hi Peter and Staff
Recent questions on this REIT have met with no major concerns including quoting a reasonable pay out ratio. Scotia in their December 21st report quotes AFFO payout ratios of 107.7 % for 2018, 102.7% for 2019 and 97.4% for 2020.
What do you use in your payout ratios and how does that differ from AFFO?
Thanks for all you do
Dennis
Read Answer Asked by Dennis on January 14, 2019
Q: I like Morguard's distribution, at over 8%. It seems to be fairing well lately, especially in comparison to almost everyone else (CAR and IIP.UN, your preferences in REITs are down 5-6% while MRT is up 7.82%). What do you think of it, and its prospects? Is the distribution safe? Is MRT likely to be needing cash soon? It's up strongly on a strongly down day, which is one of the things I look for in 'safer' stocks.
Read Answer Asked by John on January 07, 2019
Q: In the company profile, ERE is noted as being "unincorporated". I am curious if that is significant; for example are their reporting/accounting held to less rigorous scrutiny compared to an "incorporated" company? Also ERE has a +9% dividend but is a new kid on the block - less than a year. The high dividend was there from start. Is this a sign management over reaching - like trying too hard to be noticed? Can ERE maintain it? What is their payout ratio. I have no European exposure, but thinking a small position here is doable...………..Thanks, and all the best in 2019...….Lionel
Read Answer Asked by Lionel on January 07, 2019
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