Investment Q&A

Q: Hello,
I read your response on June 24 on Allied REIT and was wondering about your specifics concerns on the company. You mentioned debt, vacancy and payout as main concerns for these office REIT. Allied reports a debt to GBV ratio of 36%, 87% occupancy, 2.8X interest coverage. The payout ratio is probably too high. Allied reports a book value per unit in the mid $40s and it’s trading at about $16. Obviously, Allied reported Cap Rates for their book is too optimistic. Their unsecured debt was downgraded to junk, it seems because of high debt level. What do you think is the main factor explaining the stock price (sentiment towards office or fundamentals)? Their leverage seems to be reasonable but likely higher than investors would like. Occupancy level are better than average. Your general comments are appreciated. Thank you.

Q: What is your opinion on Mainstreet Equity - it seems to be doing much better than a lot of other REIT investments. Is it technically a REIT? Their management seem to be running it very well.
Thanks

Q: This is about the Van Eck MREIT etf symbol MORT. Good buy here, with a high dividend and rates about to come down? Outlook for the dividend and share price please over the next few years as rates come down. Thx.

Q: a number of questions related to the Slate family of companies.
1) What is the relationship to each other, and the purpose of the different Slate ticker symbols?
2) For SGR.un, are they impacted or could problems at SOT.un spill over to them?
3) For SGR.un their payout ratio is very high. i) have they shown forward finacials that imply this will come down? ii) if not do you have any data which suggests the dividend could be at risk? I am thinking of investing just for the dividend, and hope that the principal will simply hold where it is. Thanks

Q: Hello,
I have follow up questions on your June 19 response to Scott. I am not a shareholder and not planning on becoming one - Just curious about the next steps following the defaults.

You mentioned the convertible holders may issue stock causing massive dilution. It is essentially a takeover to take control of the asset disposition process and negotiation with the 1st mortgagees.

Are debentures always convertibles?

I presume the 1st mortgagee for each property owned will also send their notice of default and ask for repayment / start the foreclosure process. Is that correct and do the convertible owners have any remedy to try protecting the remaining equity?
Just looking for your general comments to understand next steps. Thank you for your great service.

Q: During the last month two BNN analysts provided the following comments for this REIT:

1. Don’t Buy
2. Sell

Do you agree with these recommendations or you have another opinion. ?

Q: Hi. I have some funds to invest. I already own IIP.UN in a diversified portfolio. Would adding RIT or BPYP-PR.A be a good diversification addition or would you recommend just staying with IIP.UN? Thank you.

Q: Why the big drop in BRE today while peers are up? Please advise and also comment on the .Txs for u usual great services & views

Q: Hi 5i - looking to please get some insight on CCS. Have held it for a while in a LIRA and make very decent returns. Noticing analysts are split 50-50 on a HOLD and SELL. Do you think it's time to take my winnings and reinvest? If so, do you have recommendations? Thanks as always.

Q: Is commercial real estate at a sufficiently low valuation to make Lument (LFT:US) and its ilk desirable? Which of LFT's competitors look good in this space?
Thanks!
David

Q: How safe do you feel the dividend is for Allied, and the reasoning.
Thank You

Q: I don’t have any REIT exposure at the moment and am looking at DIR.UN. Although the yield is good and revenue is growing fast, it doesn’t appear to have a great track record on growing either earnings or the distribution. Forecast EPS is expected to rise significantly from current levels, however the ’24 and ’25 forecasts are still only about 1/3 of what was earned in 2021/22. The payout appears to have not increased since 2013(!) What needs to change for this REIT to restore earnings to past levels and to grow the distribution? Recent high rates I expect were/are part of the problem but likely are not the entire story.

Q: Do you know why csh.un trading was halted yesterday?

Q: I have seen tweets here and there that Artis is accumulating units of Dream office. What would the motivation behind this? Thanks for any insight you can provide.

Q: Can you please provide an update on MEQ and the reasons behind it’s current decline ?

You have been found of it in your previous answers.

How compelling is it at current levels, for a long term hold?

Thank you,

Q: Do you feel Granite REITs recent weakness and drop to the mid 60s makes it a desirable takeover target. There aren’t many Canadian Industrial REITs remaining after the takeovers of Summit and WPT. Would appreciate your thoughts. Thanks.

Q: Those ETF are at the same share price as 18 yrs ago...,could they still go much lower or is it a good entry point at this level ?

Q: Good morning,

I have ~1% weight in CHP.UN. Have not been impressed with recent price action lately, but cannot seem to find any clear catalyst for the underperformance. Is this just another "rate are higher for longer" explanation, or is there more to it?

Thanks as always.

Trevor

Q: Your thoughts on Smart Centres please?
Will this and another REITS do well as rates move lower? Nice Yield.
Thanks

Q: Looking at the balance sheet is this a bankruptcy ? The conv debt is trading at 30 cents on the dollar. What is the outlook and is there a play on a turnaround?