Investment Q&A

Q: I currently don't hold a REIT. Prices have come down considerably. Do you think its a good time to be starting a position in a REIT, and which one is your favorite?

Thx

Q: I own grt, smu and dir. I notice that dir and grt are up very strongly today (so far) coinciding with the take-out of smu (announced today). I know you don't give personal advise, however, in principle, do you think it might be time to sell dir and especially grt while their share prices are inflated because of this take out? Perhaps buy them back later when their prices come back down?

Q: Just read that SUMMIT is being taken over. Fortunate enough to own both Summit & Dream Industrial in my TFSA along with HOM-UN-T and TCN along with Interent, Killam . Thinking ahead what would you suggest I replace SMU with in the Cdn Reit space?
Thanks David

Q: I own shares in ZRE, GRT.UN, and CAR.UN. They are all down in this market. Should I hold these for a year, hoping the markets will improve, or should I sell and move into something like TCN. Can you suggest better real estate companies, where the growth might be better, when the markets move up.

Q: Can you please rank these REITS as long term investments?
Does this ranking change if we are in for a long period of inflation?

Can you please rank them by valuation at today's prices?

Q: I have these Equities in a RIF Account and I would like to add cash I have available. Please let me know your preferences and maybe your reasons if possible.
Thank you as always.
Albert

Q: In my non-registered account, I have had small holdings in MRG.UN and NWH.UN for years, as well as larger holdings in ZRE and FIE. I was wondering if I should consider selling all four and splitting the proceeds between GRT.UN, CAR.UN, CPX, and SLF. I am looking for income but would also like some capital appreciation.
What do you think? Note that I also hold ZRE and FIE in my RRSP and plan to keep both in that account. Thank you.

Q: I am looking at your answer to evaluating investment quality of REITS in which you note three important ratios to consider - Interest coverage ratio (EBITDA/interest of 3X or higher)), debt to equity - below 1.0x) and NOI or net operating income. I see you give EBIT margin and Net Profit margin in your company profiles but I was wondering if it was possible to calculate NOI from these tables. Are there any other important ratios one could use to compare various REITS. Finally, how would you rank the three REITS I have noted here. Thanks.

Q: I currently own these two REITs and they have, as expected, performed very poorly in 2022 - both down more than 30% YTD. Against the backdrop of continuing rising interest rate would it be advisable to take the losses and exit the REIT sector for now?

At present prime is at 4.7% (and continues to rise, latest rumour is another 0.75% or even 1% increase), while GRT.UN yields 4.2% and DIR.UN yields about 6% these two REITs are hardly enticing investments. What is your advice on this situation? Thanks.

Q: Hi - All other factors aside, would you Buy, Hold, or Sell these stocks based on your outlook for next year or so?

Q: I have never owned a REIT but started looking at a couple. In doing so I realized that I really don’t know what to evaluate in a REIT (beyond type of asset - land, commercial, residential, specialty) and things I normally see as red flags may not be here. Can you tell me a few of the most important fundamentals to look at when comparing REITS (negatives to watch out for specifically, and positive indicators). For example my initial concerns were steady increases on common shares outstanding (seems acceptable and typical of all REITS) and what debt levels are acceptable. If you could tag your favourite REITS today I would appreciate. I have only looked at LAND and IIPR so far.

Q: I am looking at investing some funds into real estate and do not find any questions re net.un. Was wondering if you could provide a comparison on the three listed as to which may be preferable for a conservative income focused investor. Thanks.

Q: Thank you for answering my question on NAV.
The unanswered part of the question is "of the 3 is DIR.un still your favourite. Lastly please rank by risk."

Q: Good afternoon,

I'd like to add a position (or 2) in each of the following sectors: REIT (TCN or GRT.UN or CAR.UN or a better idea), energy (CNQ or SU or a better idea) and industrial (already own WSP, TFII, XYL, TT and could add to one of these or consider a better idea). I could also use a utility suggestion (either add to FTS or AQN or add BEP.UN). And, I'm always looking for an opportunity to add BAM.A to my portfolio. In what order would you add or take new positions given the current environment being favourable to a given sector and/or a good entry point for a particular stock.

Your service is always greatly appreciated, thank you,

Lisa

Q: Hi, for higher income and safety of distribution could you please list 4 or 5 attractive REITS. Growth is not a concern, just income and relative security. Thanks.

Q: Hi,
What 5 or 6 uncorrelated Canadian companies & REITS would you pick for a "HIGH YIELD" portfolio for SAFE INCOME?

Thanks

Q: I am thinking of harvesting a tax loss in CAR.UN. Had bought this to protect against, or just dampen, the abrasive effect of inflation. I do not need a loss for tax year 2022 so it would be for use in some future year. I could use the proceeds to buy a different REIT , as a possible (probable?) protection against inflation.
1- Am I correct about REITs being a probable protection against inflation?
2- Although interest rates will be higher going forward, I assume inflation also dampens effect of debt. Is this in fact true?
3-Would you suggest an industrial REIT over a residential? Please suggest names you favor. I like ones that are inter-listed as I have only US$. ( TCN, Granite GRP in the US and others). But ones listed in Canada only are also just fine.

Q: Has your thesis changed about these industrial reits or reits in general? The industrials suddenly seem to have lost their shine.

Q: Can you please compare these two industrial Reits. I own some of both but would just like a relative comaparison and maybe which one you like more and if you think it’s worth owning both. Thanks

Q: why the big drop in GRT.un today - about 4% (almost 4$)