Investment Q&A

Q: With the price of oil at a somewhat higher and firmer level, and anticipating a fully subscribed rights offering (given the price of common is above rights price), is Temple Hotels worth picking up here? Thanks for you for your insights, and have a great weekend.

Q: Not all REITs are equal; so, would you say that HOT.UN is more sensitive to the economy than some others - say 50% interest rate- and 50% economy- sensitive? And what about REI.UN? Thanks again.

Q: I keep reading that there has been a great rotation away from income/dividend stocks into growth though I dont see much evidence of it. My TD, RB and Telus are not down at all.

Can you explain this belief and if there are examples of beaten up dividend stocks, CDN or US, can you recommend a few for long term holds?

Q: I already own Chartwell (csh.un) and like it as a stable company with a strong demographic play and nice dividend. With the recent pullback, would you suggest this is a good time to add to the position? Or should I wait for more of a pullback? In your opinion, is there a certain price in which this this company becomes a screaming buy?

Q: I hold Chartwell Retirement (CSH.UN) and have trimmed my holdings earlier this year due to overweight and the expected interest rate hike. My plan was to repurchase CSH.UN back to full weighting once the interest rate has been announced. With the US Fed announcement of a possible 3 interest rate hike in 2017, maybe I should defer this purchase until later on the year. Then again in Dec 2015, US Fed expected to raise interest rate hikes four times in 2016 but there was only one interest rate hike. Currently, the dividends are DRIP since dividend income is not required for many years. CSH.UN has increased its dividend twice since 2011. Therefore I wonder if the increase of interest rates will exceed the future potential dividend increases? What do you think of the plan to add to CSH.UN holdings or should I hold off since income is not required at this time and the DRIP over time will increase my holdings or is there another idea to consider? Thank you.

Wishing everybody at 5i and its members, best wishes for the holiday season.

Q: Can you give me your opinion on CorSite. I see they raised the dividend 50% and am wondering if there might be decent growth here as well.

Q: Thoughts on the following please.
1) GEI
2) Reits in general
3) We have KMP.UN,CRR.UN, DRG.UN, DIR.UN,SMU.UN & NWH.UN which represent 8-9% of our portfolio.Any to get rid or(riskier)? Which REITS would you prefer at present if any?
Thanks,
Ted

Q: Hi

With Alberta real estate bottoming, can you suggest a REIT with heavy real estate exposure in Alberta? Thanks

Q: I have been gradually repositioning my real estate/reit holdings over the past few months on fears of raising interest rates. For example I switched from BPY.UN to BAM.A and reduced CSH.UN and recently bought FCR because it looked cheap. I currently hold full position in BAM.A, TCN and HOT.UN and half positions in FCR and CSH.UN.

Do you think these holding make sense for the current environment? I am concerned that I may be a bit over exposed and was considering letting one of these go. I would be interested to see what you think. Thanks.

But I am now a bit concerned that

Q: I have EXE SIA and hig.un about 2% in my portfolio, would it make cense to consider either of the above ones. Can you provide some info of them. Many thanks, J.A.P., Burlington

Q: Hello 5i. Can I get your analysis on this Reit. The 5 yr chart shows a downward trend from $16 to current $12 mark. Shows a yield of 9%. I like the company's portfolio of properties but as an investment I need a 2nd opinion. I currently hold REI, CSH, HR, and CAR. As I am selling my xre etf need to redeploy the capital in another reit.
Thanks for the great service

Q: Hi 5i,

My investment horizon is +10 years.

My interest is in REITS and Retirement Home Funds. My thoughts are that the future is pretty safe in these investments, but especially so in the Victoria area. I am wondering if you are aware of funds that are diversified, but have an extra or special focus in the Victoria area. Please deduct two questions if you like.

Such a wonderful service 5i !!!

Q: Could you offer your view on this stock? Thankyou.

Q: Hi, How long do you think the share price can remain at these levels yielding 8.3 percent?

Q: There seems a fanatical feeling that Reits and Utlities will be impacted by a higher interest rate moves by USA.How does that affect Canadian companies if Canada doesn't follow suit or by very little interest moves.Which Reits do you feel won;t be impacted ?

Q: I'm down 26% in D.UN and down 88% in ALL, a tungsten co. D.UN has been moving up somewhat lately. Either will provide a tax loss of about $2,500. If I sell D.UN I recoup about $7,000 to allocate anew. A sell of ALL recoups only $300. I'm concerned a US interest rate will knock D.UN & REITS back a bit and a 2nd rate hike spring/summer will really push them down. ALL finally has the Korean tungsten mining play going forward it seems, so maybe some hope for price increase in 2017. Sell one? Sell both? Thanks 5i.

Q: I would like your thoughts on whether it is a good time to buy REITs given the pull back in some recently. I am looking at AD, HOT and HR so could I get you opinion on these or others that would be a good buy now.
Thanks.

Q: REITS

My question concerns the viability at all of having REITS in an income portfolio. A Reit does not pay tax at the corporate level as long as their distribute the income to unit holders. Consequently the dividend tax credit does not apply.

Is a REIT therefore like a bond issued by a real estate company with the added tie in to the real estate market valuations ?

Would an income investor not be better off to simply buy a preferred stock from a real estate company that offers an attractive yield?

Thanks

Paul

Q: Hi, I've sold my REITs in my cash account but am thinking of adding two or three in my RRSP accounts for long term holds. Is this a reasonable move? I've noticed that your recommendations generally include CSH, CAR, and REI. I can't help but be attracted to the yield on AX. Am I "reaching" for yield and likely to be disappointed if I buy AX? What would be your top 2 or 3 REITs for an RRSP that consists of a balanced group of etf's? I'm looking to be a bit more conservative here than in my cash account which mirrors the balanced equity model fairly closely.
Thanks, Rod

Q: Can you please list the pros and cons of investing in these two REIT's ? And if you had to invest in one of them which would you choose and why?