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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: Hi 5i Team,

I am looking to invest in a private industrial/warehousing REIT that at some point might go public. What are the typical valuation metrics used for REITs in the public markets and what do you see as the average valuation for public REITs in the industrial/warehousing space?

Thanks in advance,
Jon
Read Answer Asked by Jonathan on August 06, 2021
Q: I am looking for exposure to REITs for some capital appreciation but primarily for income either through individual REITs or ETFs. Can you recommend some individual REITs and ETFs. Is this a good time to be buying REITs instead of bonds for income?
Read Answer Asked by Robert on July 30, 2021
Q: Hi 5i:

Can the Price to Earnings ratio (P/E) be used to determine the valuation of these yield plays or should I be looking at the Net Asset Value (NAV) instead?

Using P/E they rank cheapest to most expensive as: DFN, FIE, ZWC and EIT.UN. Is that accurate and if not, how would you rank them, cheapest to most expensive?

Thanks in advance,
Greg.
Read Answer Asked by Greg on July 28, 2021
Q: My REIT stocks have taken off in the last month or so as yields have pulled back. Interest rates can’t stay this low for too long as the BOC has already started tapering despite no action from the Fed. Do you think the move in REITs is overdone and should I trim and wait for a pullback as rates slowly rise? Do you think the disconnect between BOC and Fed policy will lead to further appreciation in the CAD?

Thank you,
Jason
Read Answer Asked by Jason on July 16, 2021
Q: I am puzzled by recent share-price movement downwards in homebuilders, especially given the alarmingly low interest rates. Are UShome builders likely to stay in the doldrums for more than a year , do you think? For example, DHI is profitable; has very low PEG (0.54%, I think); reasonably good cash flow; manageable debt &c., yet shares are going down. (Incidentally M/I Homebuilders, symbol MHO, is even better valued!)

My question however is only about DHI. Please give your views on what you think one should do with holdings in DHI if one wants to build a cash cushion to deploy when markets panic and sink. Please ignore tax consequences.
Read Answer Asked by Adam on July 14, 2021
Q: Hi Everyone at 5i! Hope you are enjoying your summer so far! I am looking for a little advice. I hold Riocan in my RRSP and having ridden it up and down, I am now back to breaking even . As you gaze into your crystal ball, what do you think it’s future prospects will be ? I suspect that interest rates will climb and adversely effect the stock price. Any suggestions for a replacement REIT? Or conservative dividend paying alternative suitable for an RRSP. Cheers, Tamara
Read Answer Asked by Tamara on July 13, 2021
Q: Could you explain to me STARLIGHT Investments and their multiple subsets. In Nov 2019, I was interested in the Continuum Reit IPO, but Starlight took over the Reit before the IPO for 1.72B, no small deed !! Where did the funds come from for such a young company, debt only? Are the many Starlight Multi-Family units Closed-end Funds? Limited PartnerShips? Do they have an « expiration » date ? Thanks.
Read Answer Asked by Denise on July 09, 2021
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