Investment Q&A

Q: I would like to clarify my understanding of convertible debentures. AFN.DB, for instance, matures Dec 31 2014 and pays 7% interest. It is callable Dec 31 2013 by the company. I understand that its conversion rate was set at 22.23. Assuming that AgGrowth does not call the debenture and that I was to purchase it in early January, I believe I could expect two interest payments in 2013 and then 22.23 shares if the shares have reached their target price of $44.98 or higher by the end of 2014. Presently, the debenture is priced at about $40. If the shares do not gain further value in 2014, do I get $1000 in cash at the end of 2014 when the debenture matures or does the company change the conversion ratio in order to return the value in shares? Is there a negative impact; i.e., a significant dilution, on the stock price when the company suddenly releases all those shares to pay back the debentures? What is meant by the premium on the debenture? Is it the difference between the present value of the debenture and the value at the conversion rate? I thank you for your information and look forward to your reply.

Q: Good Afternoon,

Could you please comment on Dundee REIT (D.un) and Dundee International REIT (Di.un). Are their payouts sustainable? Is there any relationship between the two companies? Thanks!

Q: At this point from income point and perhaps a hold for 5 years...would you prefer D over REI.un...currently hold 5% Riocan and 5% H&R..thinking of switching out Riocan for Dundee...what are your thoughts?

Thanks!!

Q: Is D.UN a good buy right now?

Q: Rmm.un has had a fairly steady decline,do you feel the dividend is sustainable for income ?

Q: Hi Peter, The 12 months return for XRE is down 8% (including dividend) is it time to get in? For a 10% position in a portfolio (retired), is it best to buy 3 or 4 individual REIT or simply buy XRE? (Riocan/H&R/Callaway/maybe another one...all equal weight). Also,I would include BEP.UN within the 10% allocation
Thanks

Q: hi;could you give me your opinion on nwh how stable would they be. thanks brian

Q: Hi Guys,

I am looking for income. Dundee REIT (D.un) currently pays an 8.2% distribution. There may be no growth for awhile, but do you see the distribution going down over the next 5 years? I would be quite happy with an annualized 8% return over that time frame. I know you don't have a crystal ball, but can you give me an estimated percentage of the likelyhood of a rate reduction.

Regards
John

Q: WE HOLD COMINAR, DUNDEE REAL ESTATE, H&R, RIOCAN FOR 11.38% OF OUR PORTFOLIO AND ARE DOWN 6%. DO WE CONTINUE TO HOLD OR WOULD YOU SUGGEST SOME CHANGE.

THANKS THOMAS

Q: Could I have your view of TN.UN (True North)

Q: Hi Peter,
Thanks for the excellent service provided to the small investor.
I read your positive report on Tricon. I own Morguard North American MRG.UN which is in the same business lower PE and higher dividend (I am down 6%). Should I switch to Tricon?
Thanks.

Q: What's your view on Chartwell Senior?

Q: Can you give any advice on Agellan Commercial Real Estate Investment Trust, I am considering using it on as a play on the US recovery, Also would like some of my money in US assets. Is the dividend sustainable.

Q: What is your opinion of Agellan Commercial Reit. Is a buy at these levels. Should all reits be avoided due to possible taper by the US fed. Thanks for your always insightful answers.

Q: Would Bif.un be a good alternative to owning individual REITS. Thank you, Nancy

Q: I am looking at investing in mob.un (Northwest international healthcare). They have just announced a major acquisition, financing and increase in distribution. I already own Northwest healthcare (NWH) and i think mob is an indirect owner of nwh. Do u think investing in mob is too much of the same or am i taking advantage of a "cheap" stock?

Q: could please up-date nwh.un thanks,great work

Q: Hi Team, could you please provide an updated view on Artis REIT.
Thanks

Q: I was thinking of buying these 2 REITS: NWH.UN &NPR.UN? The pay out ratios are good, good ROE & PE decent now. Long-term hold-sell my XRE ETF and buy these two. Or do you think I should wait for the US to announce plans to reduce bond buying-long bond rates go up & REITS go down in pr again?

Q: Hi Peter I am still in CWT.UN and is by far my biggest holdings(20%). Most purchased in June 2009 and some more in 2013. I also hold H&R(5%). Do you see stability in these units or should I maybe slim down some units and allocate the funds else where. Thanks everyone for your opinions. Brett