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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: Any thoughts on Pure Multi-Family Reit ruf.u, do you think this would be good long term hold.Thanks
Read Answer Asked by Jim on April 30, 2014
Q: Boulevard industrial Reit BVD.UN is run by people from Pure Industrial Reit, with a lot of experience in the sector. Is it a buy and does it pay a dividend?
Read Answer Asked by Francis on April 30, 2014
Q: I have been contemplating buying a rental property in the US for 4 years. For various reasons it has not happened. Mostly because I feel I need to understand the tax consequences, filing a US tax return, income from the US (withholding tax), structuring it properly from a trust perspective, inheritance taxes etc. I could pay someone to do all that for me, but I have always felt I need to understand every investment I own (including what happens when I sell it) since nobody cares more about my money than me. I find it confusing and not worth the effort if I am just buying one or two properties in the US. It is much simpler to own rental property in Canada and I have done that for 25 years so I know how it works as I have done it myself for that length of time.

I could refinance a paid off rental property, take $100K out of it and buy a property in the US. For the past couple of years it was very difficult for Canadians to get a mortgage in the US, so you basically paid cash for the US real estate. Or I could buy stocks that are exposed to US real estate.

I own a small position (2.5% of my stock portfolio) in Tricon Capital Group (TCN).

Would you view owning one rental property in the US valued at a $100K like owning one stock with a value of $100K? Putting $100K into one stock would represent over 30% of my stock portfolio, which I know is well beyond a balanced portfolio.

When you look at a complete investment portfolio (excluding principal residence), what % would you say should be represented by rental property? How do you factor in that one property alone can be worth hundreds of thousands of dollars which will overweight the sector in most portfolios?

I will consider buying more stocks that are exposed to US real estate, but I don’t want to put it all into TCN. I can buy more TCN, but are there any other stocks you can suggest that would meet my objective? I know rental real estate is a long term investment (been there done that, had the headaches), so I can wait it out for 10+ years.

p.s. I want deductions to compensate for my non-registered investment returns, so I am looking to borrow money to invest in either rental property, or dividend paying stocks, and deduct the interest on the borrowed money.
Read Answer Asked by Paul on April 28, 2014
Q: Good morning!
Re: CAR.UN (Canadian Apartment Properties)
In light of their purchase of the properties in Ireland, and their subsequent spinoff into a new Irish REIT (recent offering), can you comment as to this strategy(?) and the likely effect on future distributions? I believe their CEO commented (after the initial purchase) to the effect that their foray into Ireland would be short term. Is there an obvious exit strategy here, or are they looking at a more long term holding?
Thanks!
Read Answer Asked by Paul on April 28, 2014
Q: Hi Peter and 5i Research team,
Can you please provide an update on Melcor, MRD. I am up approx. 25% and wondering if we can expect continued growth in midterm. In your opinion is this company still a great long term investment? Any concerns? Thank you. Linda
Read Answer Asked by Linda on April 25, 2014
Q: Peter, your comment please on B.T.B. reit . The last I see is January. Love the high yield. Is the div sustainable and is the management good , Thanks Ken
Read Answer Asked by Ken on April 23, 2014
Q: Could I have your thoughts on Boulevard Industrial REIT. Thanks.
Read Answer Asked by Ray on April 20, 2014
Q: Morguard Corp (MRC) - has been on a tear this last week but the only news I can find is the luxury rental in TO. I have held this for a long time and have done well but wanted your insight as to what may be happening with this stock.

Thanks as always for your insights.

Cheers
Read Answer Asked by kelly on April 17, 2014
Q: Hi Team : have you any insight on MR.un. They are quite small and have just announced a financing . thanks
Read Answer Asked by Scott on April 17, 2014
Q: Hi Team: can you comment on the recent financing and acquisition by HLP.un. They seem to be agressively growing their business. Thanks
Read Answer Asked by Scott on April 16, 2014
Q: What is your outlook for the REIT sector?
It does not appear that interest rates are going anywhere,
they pay a healthy dividend & low beta.
Do you have a favorite.

As always - thank you
Craig
Read Answer Asked by Craig on April 16, 2014
Q: HLP.UN Healthlease Been having a lot of trouble getting to even on this stock. They just did a $10 offering. I expect it to dip below that price at some point. 1st -- Do you like the deal and 2nd Worth buying more?
Read Answer Asked by Gerald on April 16, 2014
Q: Helathlease Properties HLP.UN has released a new offering of $50mil in new units @ $10. I currently do not have any REITs and the 8.5% dividend at this price looks quite attractive. Would this be a good time to buy HLP or do you see any hidden concerns with HLP in specific or the Health/REIT Sector in general to avoid this area at this time. Thank you.
Read Answer Asked by Alan on April 16, 2014
Q: Could I get your opinion on Partners Real Estate Trust Units (buy, sell, hold). I see in january you thought the worst was over and was worth looking at. What caused the big drop the last couple days.
Thanks
Read Answer Asked by Doug on April 10, 2014
Q: Peter; Could you decipher the Q&A release today by HLP.Un? I am not sure if it is good or bad. Thanks. Rod
Read Answer Asked by Rodney on April 01, 2014