Investment Q&A

Q: MST.UN is mentioned often on the BNN Market Call Q&A sessions [excellent info show].
Good #'s and $'s, good prospects esp. with Trump/Perry and the pendingTexas oil boom.
My Q is about the dividend payout. What are the tax implications re CRA reporting and showing for tax year. Is the payout in US $? If so, the purchase exchange is offset by the falling Cdn $, the rising US$ and the creation of a US account for future US equity purchases. How is the future sale etc. treated by CRA?. I realize you are not tax people but I'm sure these are fundamental questions by novices. Thank you.

Q: We all know that interest rates will be going up, and these guests on BNN poo poo reits as an investment, and than try to explain how there picks down 60 & 70 % may eventually come back for there investors if they wait long enough. The way i see it, if a reit has good management they will do well going forward. In Canada, Car.un, they are full, in the USA the ones are around 95% full. More and more people in the future will be forced to live in an apartment, with poor wage growth, more expenses, they will never qualify for a mortgage. What do you think, am i not seeing the real picture here, high quality Reits should be held even a rising rate time?

Q: Good morning,

I am managing 2 portfolios, mine and my wife. Both portfolios are oriented toward income but with some growth as well. Both portfolios are diversified and has at least one company in each of the 11 tsx sectors with a total of 20 companies in each portfolios with a 4% to 6% weight in each of the 20 companies.

Both portfolios has a reit, Boardwalk (BEI.UN) and Milestone (MST.UN). The reason that we have invested into these reits is that both has assets in the U.S. and are in family residential.

With the interest rate moving up in the U.S. is time to sell these two reits?

Thank you

Paul P.

Q: Are REITs a good investment right now? (If so, which is your favorite?)

Q: I have 7% of my portfolio in AAR.UN,Pure Ind. REIT, my only exposure to the REIT sector.I'm up about 40%& have enjoyed a 9% div. based on my purchase price 5 years ago.Income is not a big factor for me.Does Pure have enough growth potential, particularly in the US, to offset the expected interest raises in 2017 & further out?Should I keep Pure or sell in favour of ZUB, the BMO Equal Weighted US Banks Hedged to the Cdn.Index ETF? Would unhedged be better at this stage? My only US exposure is indirectly through TD & SIS.
Thanks,
Dave

Q: True North Commercial REIT is one of the smaller REITs out there. Why should I invest in them when there are bigger REITs out there that have a lot better diversified property portfolio?

Q: I would appreciate your comments on the $60 million secondary issue announced today.
Thanks
Bob rose

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.