Investment Q&A

Q: Good morning,
what do you think of Morguard Corp. (MRC) here at 119ish down from 220 - i know they will get hit from the hotel exposure but it seems like a decent opportunity perhaps due to illiquidity? Some of the more liquid REITS have bounced but not this one.

Q: Hello 5i Team

Could you please provide an update on the mortgage investment corporation.
Are they a reasonable source of higher yield interest income?
The four MIC and First National have suffered the declines similar to the market.
These investments would be held in my RRSP for long term interest income and not for capital gains. These would be a small portion of my high yield fixed income portfolio which includes corporate bonds and convertible debentures.
How did MIC fare in the low interest rate environment after the 2008 crash / recession as most stock charts only go back 10 years.
Thanks for the excellent advice in the last four weeks with all the market changes.

Q: I am wondering about the risk to APR's dividend, given that they have triple net leases..
The yield is over 20%. Do you expect that a number of tenants who operate the dealerships may go out of business or otherwise declare bankruptcy? If one assumes that this economic contraction should not last more than a year, and there would be pent up demand, would dealerships give up on the business or would most be expected to cut expenses and just try to get to the other side?

i realize they haven't increased their dividend, but at 20+%, its a moot issue.

Should I take a bite now or wait to see the next quarters results?

Q: What can be expected in the future. The market killed this trust. The income for the trust must have stayed the same here, for now. So would buying in to cost average be a good idea? what about payout ratio?

Q: On March 16, in response to a question from Pierre, you said you were not interested in Boardwalk at $27 and recommended some of the higher valued residential REITs. BEI.UN is now down below $20 and has been below $16. At $20 it is trading at a third of book value and 40% of net asset value. It is a well run company and quite under-leveraged. Below what price does it become a screaming buy for a patient buy and hold investor?

Q: Could you comment on TNT.UN and BTB.UN. I understand tnt has federal government contracts ?

Q: Good day team. Re Granite; watched it reach a premium not long ago, now looks attractive for starting a position. Thinking of selling "some" Telus (still up after approx a decade hold & now 25% in one of my reg accts) and starting with GRT. How will cashflow be impacted now? Attractive on valuation now? Approx 5-7 year hold

Q: In this environment,Real estate is often recommended along with Gold.Most REITS like car.un lcontinue to drop with the market.Is there worry that rents won’t get paid?
Seniors need to live somewhere so why is csh.un down 50%?

Q: Hi Peter and Ryan.
This is an interesting time to invest. My current portfolio is down a lot but I decided not to sell it. I am in for a long term. I have been thinking about the changed world due to COVID-19. And I think about the world for a long term investment. In my personal opinion, the commercial real estate will be impacted because it is an opportunity for big companies to cut down office space and get employees work from home. The companies enabling people work from home will do well in short term and and long term.
I am going to contribute some money into TFSA. I hope to take advance of the market dislocation right now. I don't know how much more the market is going down. But I believe the good companies will come back. Can you please advise a few companies? Though my investment will be for a long term, it would be nice to see a rebound when the virus is in a control in the next few months.
Also, I have REAL (Matter). I am concerned if it is associated with commercial real estate. Please advise.
Thank you,
Yiwen

Q: Hello 5i Team

Northveiw REIT issued a press release Monday stating the "go shop" period has expired with no potential buyers offering a better offer than Starlight / KingSett Capital offer of $36.25.

Does this mean that the deal now has a higher probability (>90%) of going ahead once all the customary approvals (special meeting, Court of Queens bench, CHMC/lender etc.) have been met.

I also noted that now Starlight / KingSett can increase their holdings of Northvew from 13% to 19.9 % of Northview by purchasing shares on the open market. Do Starlight / KingSett have to issue "Early Warning Reports" each time they purchase shares?

Q: Hi,

What type of account (cdn, us, rsp, tfsa) should I hold reits in to minimize taxes?

Thanks

Q: PLease comment on Ceo's message this morning,Stated that no virus case so far. 1.5% position,p/p $18.76 .Add,sell or hold.Txs for u usual great services & views

Q: Why is iBCE down almost 10% today if it’s supposed to be a safe haven bond proxy& do you buy a full position here?

I also want your opinion on the REIT’s and why they have been demolished in the last 10 days, which names would you be buying now or later?

Please deduct accordingly

Thank you!
Nick

Q: If I look at REITS for quick valuations, I cannot use the same metrics (debt is high, they can trade well below book - especially now!) as with other companies. Leaving aside sector (and sub-sector i.e. oil vs. healthcare property holdings) related risk, what would be the key financial metric or three that one should look at and what are good levels for these? Thank-you

Q: I noticed that you have suggested adding a 4% position in ZRE. Do you have any concerns of how real estate will hold up in the face of all of this?

Q: Hello Peter and Staff

Today all rental housing stocks I follow (CAR.UN, KMP.UN, IIP.UN and TCN got hammered

I would have thought they would stand up well - rental shortages and future refinancings likely at lower rates ?

Does that logic make sense?

Any reason other than someone starting a rumour about mandated rent holidays?

Thanks and have a great day
Dennis

Q: I expected Canadian Appartment REIT to hold-on better, since people need a place to live and debt will get cheaper for the company. My sister, a lawyer, says that courts are expected to be understaffed, and so, landlords will not be able to force renters to pay. She thinks that renters who lose income due to a layoff will prioritize their car payment over their rent. I don't like that possibility one bit. I'm still positive on my position. If that makes sense to you, I'll sell and buy the U.S index. Thank you.

Q: BBU has fallen much more than the market in the last month.Actually over 50%.Are there any company specific attributes that would have contributed to this type of drawdown?Kim

Q: Hi 5iR Team, I'm totally confused by your recent addition of ZRE to the portfolios. It is my thought that REITS will be among the hardest hit of all sectors. Mortgages will not get paid, many small businesses will collapse, rents will not get paid, lack of mall shopping will mean some malls will go under, Sr's who depend on REIT income will be effected, etc., etc.. Why would I invest in ZRE? What numbers am I missing in this equation?
Thanks Team. Cheers, Chris

Q: Hi, what do you think of the coronavirus impact on CAE and CIGI?