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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,
I'm looking at sectors, both Cdn and US as I have a lot of cash to redeploy as the market gets stronger, hopefully over the coming weeks or months. REITs are something I've been considering and I'm wondering about the effects of rising interest rates on them in general. Are REITs that are based on residential rentals better than REITs based on commercial properties? What about REITs for industrial properties vs commercial? Or would it be best to just steer clear of this sector until interest rates stop rising? I am retired and count on my investments to generate income, but am also lucky enough to be able to handle risk and I am very adamant about maintaining stops to protect capital and profits.
As always, your thoughts are most welcome!
Dawn
Read Answer Asked by Dawn on November 05, 2018
Q: AX.UN dropped around $1.50 after 3rd quarter results and a release from the company on Nov 1 which stated it will be cutting its payout ratio by about 53%. A part of that release stated under the heading "Overview of New Initiatives:
...The REIT will immediately focus on repurchasing its units through its existing normal course issuer bid (the NCIB) to capitalize on the current trading price, which is presently at a significant discount to its NAV. The REIT has sufficient liquidity to execute the NCIB and intends to continue with the repurchase of units in the future to the extent that the REIT's significant discount to NAV persists...further on it says as a result of the improved balance sheet and the increase in retained cash flow from the revised distribution, the REIT will have the ability to repurchase units...

To me this feels a bit shady in that it announces an initiative that will result in the stock taking a hit and then they are going to buy back the stock at the lower price.

A couple of questions:
1. Will the shareholders have the option to keep their stocks and not sell in a buyback?
2. If you owned a fair amount of stocks in this REIT, would you hold or sell?

Thanks,

Paul
Read Answer Asked by Paul on November 05, 2018
Q: Based on insider reporting information provided by my broker approximately 17 million shares were sold by the insiders in March of this year.
Do you find this significant?
The stock in the meantime dropped by more than 30%.
Can you please verify that indeed there was a substantial reduction of shares owned by insiders early in 2018?
As well, would you still hold their bonds maturing in 2023?
Thank you for your insight.
Read Answer Asked by Terry on October 31, 2018
Q: Please subtract two question credits if you feel that is correct. First, are REIT"S good to hold in a down market, i.e. bear or recession? I am thinking that ones pertaining to rentals would be? I hold TCN,CAR and IIP in my TFSA. TCN is not doing great and I am worried the future U.S. housing market if the U.S. economy tanks, will be affected by it. thinking of swapping it for PRV ( I like the dividend) or adding more to IIP and CAR instead. Looking for good income.... your thoughts please,
many thanks,
Jen
Read Answer Asked by Jennifer on October 31, 2018
Q: I own a position in this Company and it is up about 45%. I want to add more since o strongly believe in multi family units and I find this way of investing much easier than owning an actual apartment building, which I was considering. Should I wait for an equity offering to add to my position? What is the end game for interrent? Do they keep growing the portfolio to eventual sell to a bigger player or keep acquiring properties to become a bigger player. What’s your opinion?

Thanks,
Jason
Read Answer Asked by Jason on October 30, 2018
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