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: I was listening to a guest on BNN market call tonight Mar 3/17 and the guest stated that REIT's should be held outside of a TFSA as the income is return of capital and is tax differed. Is that correct that when you dispose of the individual REIT in your TFSA that you will be taxed on the investment as capital Gains.I thought all gains and income on any type of investment excluding US holdings in a TFSA are tax free. I intend to do monthly withdrawls from my distributions from my REITS, Dividends and ETF's monthly in my retirement and thought all these withdrawls would be tax free as well as any sale of the stock/REIT/ETF position.
Could you give me your opinion.
Thanks
Read Answer Asked by Michael on March 10, 2017
Q: just a comment about your comments. I am in the real estate business and affordability is not always the driving force in prices. It is demand from offshore money, investors, both locally and from abroad. In Toronto, there is a lot of money that can afford these investments and a collapse in the housing market would mostly hurt the working people who if they had to sell or refinancing would be stressed. If investors have lots of money, they are investing with the risks. they do not need these investments to pay for their own food and accommodation. I have worked through the housing price correction in 1974,1989,2001, 2008 and it was brutal for some people but an opportunity for investors with money. Now we have the additional overseas money which even at 5-10% is paying up for real estate in an already tight housing supply market. Who would want to sell and have no place to live. There may be a correction in Toronto but the investment fundamentals have to change. Keep waiting.....
Read Answer Asked by john on March 08, 2017
Q: I am considering adding pure play "Industrial" REITs to my REIT allocation. I currently have sufficient representation in the apartment and office/commercial sectors of the Canadian REITs

Please rank in order of preference the 5 pure play industrial REITs on the TSX. Am I missing any other names?

The market capitalization of the REITS are: Pure Industrial ($1.42B); Dream Industrial ($499M); WPT Industrial ($436M);Summit Industrial ($101M); and Edgefront ($68M).

Is Edgefront REIT too small to invest in?

Given Pure Industrial has Canadian and US holdings is it better than a 50/50 split of Dream (or Summit) and WPT which would give the same proportion of Canadian and US real estate holdings.

Please confirm whether WPT is traded in US dollars on the TSX.

Thanks for the excellent service.
Read Answer Asked by Stephen on March 08, 2017
Q: Good afternoon guys,

Please take the necessary number of credits..... My first question is about AX.UN. From what I have read, they seem to be managing the downturn in Western Canada fairly well - partially by diversifying in the States. Your thoughts on its prospects at this point in time? Does the distribution look (relatively) secure?

Second question pertains to Dream Office. Michael Cooper indicated that he thought the dividend at Dream Office would be lower within 2 years - likely due to their downsizing/rightsizing/upgrading their portfolio. Would you be inclined to wait for the stock to fall further before dipping your toes in?

Final question - Dream Industrial's payout ratio is getting too high. Do you see them cutting the distribution? It just seems that every time they report things look a little worse than they did in the previous quarter.

Thanks again for all you guys do. Great service.

Aaron
Read Answer Asked by Aaron on March 03, 2017
Q: Your report on Altus Group stated “One of the noteworthy risks at AIF is that 42% of the Canadian cost practice is from rental and condominiums in the multi-residential segment. Impairment in this sector could hurt the Canadian revenues as could a general decline in the Canadian housing markets.”
I would have thought that their revenues in this segment would depend more on sales volume as opposed to actual housing prices. Can you please comment on this. Essentially, if an investor believes that housing prices (condos in particular) will decline but turnover will remain strong, would this negate any of the declining revenue risk outlined in your report?
Read Answer Asked by Steven on March 02, 2017
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!