Investment Q&A

Q: hello 5i:
could you give me your thoughts on CoreSight Realty Corp? Would this be the dominant player in its field?
thanks
Paul L

Q: Notice 5i holds CSH.UN in the Income Portfolio but would you not consider SIA a better income investment in the same business or does the .UN make a difference?

thx
Rrichterr

Q: I am looking at these 2 reits ,what are your thoughts, or can you suggest some others in the space. P.S. I am retired and need yield. Thx Jack.

Q: I own RIT for exposure to the Canadian REIT market. Please rank these four holdings as a long term hold in a growth portfolio. Also, I am considering adding one (or two) individual REITs to add a bit of up side to the general REIT market exposure of RIT. Would you advise this and, if so, which of these three, or any other, would you recommend?

Q: Hello 5i

Thank you for your prompt reply to my question as to which account was best to put XRE.

Would all interest from the security only be sheltered in an RRSP or would the same rules apply for a TFSA? At present, I have no room in my RRSP but so have my 2019 contribution money waiting for a home.

Thanks, as always, for your support.

Best
Peter

Q: Read a question this morning about investments in REITS. Considering all the variables, and with a focus on the future economic outlook for Canada, what makes adding a number of REITS to one's portfolio at this time a wise decision.

Q: Greetings

I have cash to deploy and I do not have any REIT’s in either my Canadian Cash Account or my TFSA.

What is your opinion of XRE and in which account would make more sense to place it?

I am retired, a conservative investor, and do not need the cash flow at this point in time.

Thanks

Peter

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.

Q: Yesterday you answered Dave’s Artis question. Do you have any more comments about the quantity or signifigance of insider buying or company buybacks?

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.

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

Q: Seems to be a lot of insider buying in this stock, but I don't get the sense from the questions that you are fond of it. Does the insider activity change your mind at all?

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?

Q: I checked on the TSX as of January 20, the PE for CSH.UN shows 99.70. Is this correct? I am thinking of buying CSH.UN but the PE factor seems to be too high.

Q: Hi Team
BBU.un has been dropping from $58.53 In NOV to 44.39 to date. Its below the 50 and 200 day MVA. cross over.I would like to know the weakness in this company. Will this stock ever going to recover. Should I sell or hold?

Q: I have a question about SOT.UN. Slate Office. There is unusual strength and volume today but I do not see any news. Do you see any news? Slate is up 5.5%. Thank you.

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

Q: I am interested in purchasing drg.un in my rrsp account for the monthly income. Does this company qualify for a Canadian rrsp holding? About 66% of the distribution is Foreign Non Business Income. Is here a withholding tax on this?

Thanks, Jim

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

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