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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 5i,
Just a comment on Nino’s question and your answer about the choice between paying up for a REIT ETF like ZRE/XRE versus holding 8-12 individual REITs. My choice has been the latter and I have been happy with it. Your answer suggested that rebalancing 12 holdings annually would cost $120 at $10 a pop. My experience has been that the reality is much less than that. Because the REITs tend to move as a group more than their individual movements relative to the group, in holding 8-12 decent quality REITs I haven’t had to do more than 2 or 3 rebalancing transactions in any given year. Except for a couple of extraordinary years my REITs have really been low maintenance holdings. Cheers!
Read Answer Asked by Lance on June 13, 2017
Q: Could you please give your thoughts on Dream Global and future prospects. They seem to be doing the right things in terms of recycling older buildings and reducing exposure to Deutsche Post along with acquiring better properties. They have fully deployed the proceedings of the bought deal with the announcement yesterday of the acquisition in Stuttgart. Most of the mortgages in Germany are around 1.7% and should not be affected for the most part by rising rates.

I doubt they will increase distributions anytime in the near future but my yield on cost is above 10% and the holding is around 6% of my portfolio. Thank you for your work.
Read Answer Asked by Mayur on June 09, 2017
Q: Hi Folks,
I'm looking to add a REIT or two to my income portfolio. I'm also aware of the possibility that rates may increase over the next year or so. I was thinking that "growthy" REITS would provide some protection from rising rates. Could you suggest two or three REITS with the potential for above average growth with a sustainable distribution. I'm OK with some riskier names.
Great work, as usual.
Dennis
Read Answer Asked by Dennis on June 09, 2017
Q: Hi, could you please suggest one of these,or another you might like better,for income mostly and of course some upside. Do they use ROC to pay part of the dividend?This would be a full position 5%. Management,LowDebt,Good Sector,and capital preservation is most important.
Thanks
Read Answer Asked by Brad on June 07, 2017
Q: If cominar reit cut its distribution in half , its yield would still be a healthy 5.7% yield at $12.95 a share. The AFFO payout ratio would fall to 60 %and its share price would be trading at 10X AFFO and a 25% discount to net asset value.So why are investors dumping the stock because of the high yield and temporary 100% plus payout? (my numbers are based on a %1.28 2017 AFFO from TD Waterhouse, projected to rise going forward.)
Read Answer Asked by John on June 06, 2017
Q: What do you make of the vitriol between activist investors and management of GRT.UN? As a shareholder I have to vote by June 13. I have never before received an email, as I did today, extolling why I should vote in favour of the activists and against management. That said I have enjoyed a fat DIV and a 37% share price increase in the four years since I first bought the stock so you know where my inclination lies!
Read Answer Asked by Kim on June 06, 2017
Q: I took a half position in PRO REIT two months ago after the Globe breakout article and I’ve since read all 5i’s past commentary which I found encouraging.
It is appearing that this is a solid growing REIT with great dividend and monthly DRIP. The payout ratio is dropping, they continue to make accretive acquisitions and it won’t be long before their market cap is over 100 million attracting new investors.
Would now be a good time to add to the position after the latest offering? Any other insight or advice you can offer me on PRV is appreciated.
Craig
Read Answer Asked by Craig on June 05, 2017
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