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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

Northview Fund (old ticker NHF.UN) is now trading as the new entity (Northview Residential REIT new ticker NRR.UN) on a post consolidated basis (1.75 NHF.UN = 1.0 NRR.UN).

1 - How does NRR.UN compare against the other Canadian residential reits?

2- Is it buyable or should I wait and see how the market likes it.

3 - Is there financial results available for the consolidated units or do I need to wait for Q3 quarterly results (available late October / early November).

Thanks
Read Answer Asked by Stephen on August 24, 2023
Q: Hi 5i,

I believe in management and the long-term prospects of AP.un, so I want to hold on long-term.

On a couple of conference calls management has indicated there will be a large taxable event for unit holders because of the data center sale. I assume this will be a capital gain which may be a ROC of just a plain taxable capital gain. In any event, would it make sense to sell my units now resulting in a large capital loss and then buy the units back after 30 days. The loss will more than offset any gain the company would declare. If it’s a return on capital, I would use the loss to offset other gains in 2023. Your thoughts would be appreciated.

Do you anticipate much change in the unit price over the next 45 days? What do you think of this REIT long-term (3-5 years)?

Thanks for your opinion.
John
Read Answer Asked by John on August 24, 2023
Q: Hi 5i,
A coupla questions, please deduct accordingly:

1. I've just received the following cautionary analysis regarding DIR.UN, and wonder if you would provide your comments on the points raised. I'm interested in acquiring DIR.UN but am concerned about the stated risks.

Currently, the following risks have been identified for the company (DIR.UN):
Major Risk
• Debt is not well covered by operating cash flow (8.6% operating cash flow to total debt).
Minor Risks
• Dividend is not well covered by earnings (dividend per share is over 12x earnings per share).
• Profit margins are more than 30% lower than last year (63% net profit margin).
• Shareholders have been diluted in the past year (3.1% increase in shares outstanding).


2. Could you also provide your analysis on BTB.UN based on the same criteria as applied to DIR.UN. I owned it years ago and enjoyed the yield, but became convinced it was too risky for my income portfolio. Now, years later, I see that while its unit price hasn't increased much, none of the fears materialized and had I held on it would have supplied decent income during that time. I'm considering re-entering.
Thanks 5i - much appreciated.
Peter
Read Answer Asked by Peter on August 23, 2023
Q: What are your thoughts on REIT's as a whole, as the sector is getting beaten up. I know which one's you like based on other questions. I'm not a value investor, but I do like buying high quality names in beaten up sectors when investors think the sector is done. I did this with oil & gas 3 years ago. Do you think the quality names in the REIT sector are getting unjustifiably cheap and may be a screaming buy longer term? Or are there reasons to not be a big fan of the sector? thx
Read Answer Asked by Adam on August 22, 2023
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