Investment Q&A

Q: Symbol=VRE. Vanguard Canada FTSE CDN Capped REIT ETF. Contains 19 CDN REITs (RioCan, H&R, Calloway, Cominar, BPO, etc.). MER= 0.40%. Seems like a good way to get REIT diversity for reasonable cost. Previous 5i answers indicated that current REIT slump is due to "sector rotation" and that money may return looking for income. Would VRE be a good way to do this? Comments please. Additional words regarding Vanguard Canada ETFs also appreciated.
Thanks from IslandJohn.

Q: Hi Peter & 5i: Thoughts on Partners REIT's recent quarterly report (PAR.UN)? The share price decline to present levels ($6.30s) has pushed the yield up to 10%. Thanks.

Q: What are your thoughts on the possible elimination of REITs by the Feds in the near future?

Q: What do you think of pure multifamily reit which invests in US houses? Pays over 8% but it has been sagging all year. Is it a good way to play the US housing rebound? Thanks.

Q: Hi Peter & Co.,
I purchased shares in RioCan, Dundee Reit, Calloway, and First Capital Realty earlier this summer. Most have declined in price since then, but now I'm finding the distribution yields so attractive that I'm thinking of "doubling down". Is this a good entry point (has all the damage been done?)or will there be a more attractive entry point between now and year end? Also, my REIT holdings now account for about 10% of my portfolio - what would you recommend as the maximum allocation to this sector (I'm a long-term dividend investor)?
Many thanks and have a great weekend!
Brian

Q: Hi guys, Interrent has taken a real tumble lately. I'm still in the black with it but wondering where the bottom is? Do you have advice about whether i should sell now, or hang on? It's about 5% of my portfolio, and i'm in for long-term steady growth. Your thoughts are much appreciated!

Q: Hi Peter:
I am looking for income
I have positions in Reits including Riocan, CSH.un. H&R
Calloway and a smaller position in Dundee and Granite Reit
the last 2 has taken a bigger hit than the rest of the REITs
If I have more funds coming in to invest, which REIT of the above would you consider to add to ? I have heard of Boardwalk
but unsure if you cover it or not ?
Many thanks! Great show on BNN, Peter gave us alot of very valuable information!

Q: Hi 5i Guru's

Re; Rei.un (Riocan)

I am considering adding RIOCAN to my TSFA. It has been beaten up with the REIT sector and looks like a reasonable entry point now. I think Shopping centers are in the cards for the long term, providing a secure revenue stream. The close to 6% dividend is therefore likely sustainable and subject to increases. And lower interest rates seem to be here for some time to come.

Would you recommend RIOCAN, or do you see a preferable name in the REIT sector.

Thanks so much,

Q: Chartwell (csh.un) has dropped more than other REITs. Could you comment on the company and do you think it is a good time to buy this or other REITs such as HR.UN or REI.UN. I have a well diversified portfolio and I am not overweight in REITs. I greatly appreciate your advice. Thanks

Q: Hi, Peter and Team: HLP.UN has been sliding and has a payour ratio in the nineties. I notice on their Web page, under the News Release section, that they've posted a dividend disclaimer. Any cause for concern?
Thanks, Dale

Q: Good Morning,

You commented on Leisureworld (LW) yesterday before the release of their quarterly results. The stock plummeted at the open this morning but has since made a slight recovery, although still down. Do you continue to stand by yesterday's comments? Many thanks!

Q: Peter, your opinion on Dundee Industrial Reit please. Thanks Ken

Q: Wondered if you had any thoughts about the decline of Leisureworld (LW: TSX) with no news lately, and earnings release after close today?

Q: Can you comment please on the down-grade of Dundee (D.UN) by CIBC today? TIA
Gary

Q: Hi Peter & 5i: regarding Blaine's question on Partners REIT. There was a fire that destroyed one of their multi unit buildings at the Evergreen Shopping Centre in Sooke, BC, on July 31st. I believe that is a substantial reason for their continued descent the last week, while many other Canadian REITs appear to have been stabilizing a bit. The fire was "suspicious." Haven't heard anything on insurance coverage or dollar value loss estimates yet. Presumably they'll have some comments about it when they report later this week.

Q: Hi , the share price for Partners REIT (PAR.UN) has continued to fall throughout the summer and now yields about 10.35%. Any idea what might be going on here? Thanks

Q: Hello,

RLC.TO, Buy, sell or hold.

Thanks

Q: I recently bought HCP Inc "HCP" at $ 45.50 since it has been going down. Would you have any opinion on this stock.

Thanks

Q: Hi Peter,

Your latest reports on FCR (B+) and H&R (A-) were positive but since then, the shares of each of the two companies have decreased significantly (in the past few months). Can we expect further volatility given the "threat" of tapering and interest rate hikes? Good entry points at these levels or wait and see?

Regards,

François

Q: Hi 5i team. I'd like to put in my 5 cents worth to give contrast to Lance's question on REIT's and specifically Riocan (REI.UN). From my perspective as an income invester, the pay-out and it's ability to keep up with inflation is more important than the value of the shares. I bought REI in 1997, soon after its debut for $8.75. Over the years, the ACB has declined to zero and the yield at cost (present yield divided by original cost as percentage) has gone up to 16.11%. Depending on how you calculate inflation, it has done pretty well as a taxable investment and because of the ACB situation, it is difficult for me to sell. I don't think it has done too badly compared with the TSX. Going forward is a different matter because, as Lance has pointed out, we are going the opposite direction as far a interest rate is concerned. Should I sell and paid the hefty tax bill? Thanks. Henry