skip to content
  1. Home
  2. >
  3. Investment Q&A
You can view 3 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hello. On Jan 31/19 I purchased DRG.UN in an RRSP account. I have a couple of questions:

1) A recent article by Globe & Mail columnist Eric Reguly (Jan 31/19 "Italy is back in recession, and Germany might not be far behind") has me wondering whether this REIT would be adversely affected if a recession happened in Germany, as this REIT’s "German office properties represent the majority of its holdings in terms of total square footage" and "derives nearly all of its revenue in the form of rental income" (per Morningstars description)

2) You responded to a previous query that this REIT would be better held outside an RRSP. Could you please explain why.

Thanks for your guidance.
Cheryl
Read Answer Asked by Cheryl on February 04, 2019
Q: Greetings 51 Team,
A number of questions recently on REITs. Not surprising; although they tend to be boring, they have (as a group) held up nicely on both a 1 yr and 5 yr basis and offer a good yield.
However, 'all REITs are not created equal' and 5i has recently recommended DRG, HPMP, GRT, and HR. I own AP, SRU as well as XRE and have not seen a lot of discussion on those names.
Plse explain why 5i would recommend one REIT, and in particular the four above, over another and, if you care to comment on AP and SRU.
TY
SP
Read Answer Asked by Steve on February 04, 2019
Q: My first question as a rather new subscriber! I am 7 y into RRIF withdrawals so wish mostly dividend stocks in this portfolio. I have held EXE since May, 2015 and am now barely $1300 above (all in dividends and share value) as of today. I have read your comments about "quality trade off" and "weak hold for income"with regards to holding EXE instead of SIA and / or CSH.UN. You have commented that EXE debt is about 10 times cash flow. Could you give me similar information about SIA and CSH.UN please. I am about ready to sell EXE for positions in both or either of SIA and CSH.UN (in spite of them having lower dividends and earnings per share and higher P/E). Comments appreciated.
Read Answer Asked by Gary on January 31, 2019
Q: Hello 5i
I hold REI.UN,CAR.UN, & HR.UN each at about 2% of holdings in my accounts. Sold D.UN for tax losses. Would like to increase my REIT exposure to about 10%. I consider BPY.UN and DRG.UN as additions.
Do you consider the five as reasonable choices or would you recommend that I look elsewhere? Is this a good time to increase my allocation this sector?
Thank you,
Werner
Read Answer Asked by Werner on January 29, 2019
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
Read Answer Asked by frederick on January 25, 2019
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?
Read Answer Asked by Ross on January 24, 2019
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
Read Answer Asked by Peter on January 24, 2019
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
Looking for more? Sign up for a FREE 14 day trial! No credit card required

We invite you to sign up for a 14 day free trial of 5i Research!
Experience all the benefits and tools we have to offer; stock research, model portfolios, Q&A with our experts, and so much more. Join a community of like-minded investors today!