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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 Peter, I am wondering if you have heard about this US stock. I find this REIT pretty interesting in owning properties of data centers rather than commercial, residential, shopping mall developments. Their financial statements looks pretty sound since 2005. Is this the only player in town? If all they hold is the land and tech just keeps advancing long term, what possibly could go wrong with this company (besides bad management)? Your thoughts? Thanks.
Read Answer Asked by Michael on December 11, 2017
Q: I have owned shares in Smart Real estate for many years and still have a profit of 115%. I have a well balanced portfolio. I was wondering if it is worth keeping (considering it has been losing value over the last year) or would it be better to pay the tax and invest in something else? I do not depend on the income. Could you also comment on its last quarter report?
Read Answer Asked by jacques on December 06, 2017
Q: I have held Summit for a bit over a year and been happy with it - but - this is the third equity offering in 12 months, which is becoming rather frustrating. Does this seem excessive for a company of this size and in this sector? Could you comment on their debt, payout, this latest offering and the company in general? I hold it mainly for sector exposure and income.
Thank-you
Read Answer Asked by grant on December 06, 2017
Q: I have a question about retail exposure in REITs. My broker is encouraging me to sell these REITs due to exposure to retail and/or Alberta. Seeing that they all seem to have plans to rebalance their portfolios, I am less concerned. My exposure to retail is around 15% of my REITs overall (mostly via Riocan) and less than 5% of my total portfolio. My exposure to Alberta overall is about the same (mostly through these REITs). Would you recommend reducing my exposure to these REITs and in what order (descending vulnerability)?
Read Answer Asked by Carl on December 04, 2017
Q: What is your opinion of AP.UN in today's rising interest environment? I know some REITs will be hurt if interest rates rise a lot, but it seems to me that Allied might not be hit as hard as some because it has some unique properties which many tenants will still be happy to lease. I have held AP for many years, and am considering adding more.
Read Answer Asked by Jack on December 04, 2017
Q: I understand that CAR.UN has better overall assets than MRG.UN, but the difference in valuation seems ridiculous. MRG is trading at 80 percent of NAV and 14 times 2018 AFFO, while CAR is 105 percent and 21.8 times , respectively (all per TD). It seems to me at this valuation, Morguard should just take over the chunk of MRG it doesn't own. Thoughts?
Thanks.
Read Answer Asked by Alex on December 01, 2017
Q: are there any reits with good yields and low valuations? thanks
Read Answer Asked by jim on November 30, 2017
Q: I am a long retired (10 years plus) conservative investor with a portfolio largely based on your income portfolio with a few holdings from the balanced portfolio.
The somewhat unexpected capital gain in this security (CAR.UN) of about 30% in just less than 2 years and the consequent relatively low (for a REIT) yield of about 3.4%, has given me some concern that this security is over bought and due a significant correction. To-day, there is an article in the Globe and Mail that questions the validity of the AFFO calculations used by this company and in particular how capex and maintenance expenses are applied to the AFFO.

What are your views in this area and do my concerns that this security may be over bought have any validity?

Thanks
Read Answer Asked by John on November 22, 2017
Q: Hi Peter and Staff
Always listed as one of your favoured REITS and I have done well on appreciation with lower yield than some and a touted low payout ratio.
Please comment on the Globe article yesterday regarding questionable ratios re: capital versus expense
They lumped it up there with Boardwalk with unsustainable payouts
Thanks for all you do
Dennis
Read Answer Asked by Dennis on November 21, 2017
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