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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: Hello 5i team.

I appreciate your answer a day ago which gives me a good understanding of the income from REITS in general.

As my questions stemmed from a specific interest in CAR.UN, am I to assume that your answers apply to CAR.UN? Do you wish to provide specific answers to my questions as these relate to CAR.UN.?

Can 5i inform which of the few REITs would be providing income that meets the qualification for eligible dividends?

Thank you,

SGR
Read Answer Asked by SG on May 13, 2016
Q: Your income portfolio shows this REIT to have a yield of 5.5%. Not bad in today's low interest rate environment. It seems that reits are trading at historically low yields. How high do you think the yield on ZRE or reits in general wowuld go if interest rates eventually normalize? For bonds, I would simply use the duration to calculate the price risk, but reits do not have a fixed term, even though they are ofter referred to as "bond proxies". Can you provide some insight into how high reit yields could go if interest rates were to normalize?
I really appreciate your work.
Thanks,
Read Answer Asked by Hans on May 13, 2016
Q: Recently Peter's response to a member question mentioned CAR.UN as a decent choice for a REIT for good income and growth prospects. That's got me started thinking about adding REITS to my non-registered account.

However, I am not educated about the tax implications of owning Canadian REITS in a non-registered account. Is income from CAR.UN an eligible dividend to qualify for the dividend tax credit? Or is it treated as straight income that is fully taxable, or are there some other form of tax treatment that is done with income from Canadian REITs?

If eligible for the dividend tax credit, are there other Canadian REITs that look attractive from a growth, income and favourable tax treatment perspective?

SGR
Read Answer Asked by SG on May 12, 2016
Q: Hello Peter,
With the recent gains, i reduced my chartwell residences to 4% from 8% weighting. I was thinking of reducing it to 2% and using the proceeds to buy Sienna Senior Living. Do you think this is a good switch or the risk reward is better by simply keeping chartwell and collect the dividends. I am thinking of doing this as chartwell has gone up quite a bit this year. Thanks
Read Answer Asked by umedali on May 11, 2016
Q: Hello 5i
Would you please comment on what is going on with TCN these days. Seems to be weak and not participating with market up swings. It has been in a downtrend since Aug2015 a recent purchase has me underwater and the stock price appears to be heading back to the 2016 lows.
Has something happened to this stock from the viewpoint of major investors - making it a sell?
Thanks
Dave
Read Answer Asked by David on May 11, 2016