Investment Q&A

Q: Hi, Peter
I frankly do not like the way Dundee International is behaving. I worked around financial statement and listened again yesterday to their conference call. Some questions regarding renewals, selling some assets did not helped my feeling. I sold this morning after buying a very small position.
What is your take?
Thanks again.

Q: Your thoughts on Timbercreek Global (TGF.UN).
Thank you,

Joseph

Q: Peter and team,

My portfolio has had a solid year overall but not surprisingly the REIT component, about 17% of the portfolio to start the year, is off sharply. For tax and 2014 cash flow reasons I need to sell one of the following. They are all good companies with now mostly single digit PEs but if you had to sell just one which would it be from:

AGNC, D, CAR, KMP, HR, CWT, REI, AX, ACC AND GRT.

Thank you! 5i is now a daily must read site for me.

Q: I was wondering about the tax situation of some of the reits like Dundee int. and some of the reits expanding into the states and other countries,Are The reits treated simiarly in the US and other countries or do i have to worry about Their rental income being taxed,Also i wonder if you could give me a guess on how high the interest rates could increase before I would start seeing distribution cuts.

Q: DI.UN is tanking these days. Is it just interest rates & sector rotation or is there a more fundamental problem with the company? Thanks. Michael

Q: comment on EIF.to and F/un.to

Q: Hi Peter and 5iResearch Team,
While listening to BNN this morning the host mentioned that China hedges the USD by buying US real estate. Can you recommend a good ETF that invests in US commercial real estate and do you think this is a good time to buy? I currently own Morguard NA Residential REIT. Can you comment regarding commercial US REIT vs. Cdn REIT that invests in US commercial property? Thank you.

Q: Ant thoughts on IIP.UN? Thanks

Q: Canadian Tire REIT (CRT.UN) question asked by Paul Nov 20/13:

The regular yield is 6.25% not ~8.25% because of an initial extra week. The company Oct 23/13 news release explained it as follows:

"It is intended that the first distribution of CT REIT will be in the amount of $0.070194 per Unit for the period from today to November 30, 2013 and will be paid on December 13, 2013. Thereafter, CT REIT intends to make monthly cash distributions of $0.054167 per Unit, which are initially expected to provide an annual yield of 6.50%."

Publish as your discretion.

Q: A general question.
I have several REITs and love the monthly dividends but several are under water such as CUF.UN, D.UN, HR.UN, AX.UN

Will the tide ever rise again on REITs in general?
Should I just sit back wait it out and enjoy the monthly divs?

Q: I just purchased the new Canadian Tire REIT - CRT.UN - which declared its monthly distribution for December at an annualized payout rate of 8.26% Wow! I realize the sector won't provide much capital appreciation but this particular REIT seems extremely stable given its long-term leases from Canadian Tire owners. As an income investor, can I rely on this payout as sustainable over the long haul?

Q: Please give your opinion on Smu.un going forward and whether there are some huge hidden fees as though it were a mutual fund
Thanks

Q: I bought shares in Annaly Capital Management NLY a few years ago when RBC seemed to be giving it the nod. The high yield was attractive and it did OK for a while, but it's down about 37% since I bought them. At current levels, they form about 3% of the value of my wife's and my registered investments. Is there any hope for an upick, or should I just sell and move on? It's depressing looking at that -35% figure in the Gains/Losses column.

Q: What do you think of Plaza Corp (PLZ)in light of their plan conversion/consolidation and their latest quarterly report.

Thanks

Q: Do you think that PAR.UN will lower their dividend again in the near future? What is your outlook now?
Thanks, Ron

Q: What is your opinion of Pure Industrial REIT (AAR.UN)?

Q: Hello 5I Team. Last night I sent you a question but have had no reply. I am assuming you did not receive it so I am re-sending it again.

I am considering 2 different REITS: HOT.UN and WIR.UN. Both companies are registered in Canada but have their portfolios of properties in the US. HOT.UN (American Hotel)has a portfolio of hotels that have most of their occupancy contracted for up to 10 years to rail companies. I would like your opinion if their model is sustainable to protect their current valuation and dividend of approx. 8% and if the dividends are considered eligible dividends for income tax purposes and finally do you see any upside for this company. WIR.UN (WPT Industrial) owns and manages high quality industrial properties, and its stock trades in US$. Would their dividends which are paid in US$ considered eligible dividends & my final question: Which of these 2 do you feel is a better play on the US recovery, as well as which of these would be safer as an income play & preservation of capital, assuming that neither of these would appreciate very much in the current uncertainty about interest rate direction and do you feel that REITs still have momentum to the downside. Thanks again for your time to answer my question.

Joseph

Q: WIR.U, Industrial prop. in USA-not a lot of info available-CIBC covers and has a outperform rating @ $10 TP 12 mth out-sustainable dividend @>8%? I was thinking of adding to my RRSP. Comments please -would you buy??

Q: Hi Peter and 5iResearch Team,
Can you please provide your guidance on Applied Properties, AP.UN. Is this a good time to buy this REIT, and how does it compare with Dundee REIT, D.UN.. I own Dundee, and would like to know if AP would provide additional diversification and good LT performance.
Thank you.

Q: Hi Peter & 5i: A thought occurs while I am suffering through the recent quarterly announcement from Partners REIT (PAR.UN), the distribution reduction and the associated significant drop in unit price, all in the name of “financial flexibility,” while the independent directors shepherd the enterprise through its disentanglement with external management and some process of considering strategic alternatives. The REIT has all too recently weathered an acrimonious civil war, in which those who would have moved swiftly to internalize management lost that bid, in a special vote of the shareholders, due to the hard fought resistance of the very same external manager they were trying to expel, a company which also happens to be the REIT’s largest shareholder. So in very short order thereafter, the external manager company is in financial trouble and facing bankruptcy, perhaps due in part to its expenditures in defending its lucrative management contract with Partners. Now who might be hurt the most, in the short term, by the present moves? Let’s take that company in bankruptcy and in a single swat reduce what may well be among its most valuable assets, the holding of REIT units, by 10%. In the same move, let’s reduce the life blood, the regular monthly cash flow the manager receives from those units by 20%, effective immediately (with the November distribution). I have no insider knowledge about Partners but this has the look of what might be a bit of a vengeful disemboweling of those who successfully suppressed the coup attempt but then failed, fatally in its aftermath. Or am I reading too much in here? I'm tempted to hang in with it and see where it goes but wonder whether I might be better off to take my loss now and move along. Thanks for any thoughts on this!