Investment Q&A

Q: I hold these 3 REITS . May I have their fundamentals and how will they do in a recession and rising rate environment.

thank you

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 had inadvertently marked the following question 'private' and am now sharing it, along with your response. I also have a follow up question: please rate ENB and AQN on a scale of 1-10 for both growth and safety over the next couple of years. Thank you.

Wanting to dip my toe back into the market with a 2.6% total portfolio investment. My goal is to purchase stock in a Canadian company with a dividend >2%, that is anticipated to experience strong growth in the next 2 years and is not particularly volatile. Please rank the following on a scale of 1-10 for both growth and safety: MG, SLF, TCN, LNF, and IIP.UN. Other than GSY, X, BEP and BIP (already held) are there any other Canadian companies you would recommend that would meet my criteria? Thank you.



Asked by Maureen on August 17, 2022
5I RESEARCH ANSWER:
For growth: MG 6; SLF 4; TCN 7; LNF 5; IIP.UN 4

For safety: MG 7, SLF 8, TCN 4, LNF 6, IIP.UN 7

We might add ENB, AQN, X to this list.

Q: What did you think of recent quarterly results?

Can you compare this stock on a valuation front with what ever metric you think is best for reits to Car and iip?

I have a decent sized position and thinking about adding more on the alberta re-rate /energy strength / cheap relative valuation / no rent control thesis.

Thanks

Q: After reading your report on InterRent REIT, I'm looking into it further. I currently hold NWH but am looking for more growth in both the distribution and unit price (NWH hasn't increased the distribution in a long time, and the unit price hasn't grown that much).

I see that all of InterRent's 2021 distribution was ROC so all tax-deferred. Is this expected to continue? If so, that's a great benefit as I'm holding in a taxable account.

Q: It seems to me that in the REIT field, there may be better opportunities & yield in something like "O" in the U.S. Market, or "BSR" or "TCN" on the Cdn. market - Comments? .... Thx.

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: With mortgage rates increasing and housing becoming less affordable would now be a time to buy IIP.UN and TCN.

Q: I am wondering about the relative safety of these Reits if interest rates runs really high. I was reading an article in Barron's which claimed a high number of Reits went bankrupt in the 70's and 80's, but went on to say it wouldn't happen today even in the same case scenario, but it did not say why. Wondering what you think of that statement, and if you could answer "why it wouldn't happen now". Do you think these Reits are safe to add to as they go down, and would their dividends be safe if interest rates ran hot for a couple of years? 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 SWITCHING REITS. SELLING IIP.UN CA BUYING NXR.UN CA, WHAT ARE YOUR IDEAS FOR DOING AND/OR NOT DOING THIS? THE YIELD IS HIGHER WITH NXR.UN -CA.
THANK YOU FOR YOUR HELP IN DECIDING WHAT TO DO.

Q: All four of these companies seem to be interest sensitive & are dropping a lot. NWH.UN is still up 15%,TIXT is down 25 %, while IIP.UN is even & DIR.UN is down 18%. Should I sell because of the announced & upcoming interest raises or continue to hold them? They all appear to be good companies but are being swept along by the tide of selling.Thanks
Dave

Q: Thinking of getting back into 1 or 2 real estate companies. Looking at IIP.un and MEQ. Can I have your opinion on these thwo? Are there others you would consider over the next 3 years?

Thank you, Mike

Q: Hi
Am I correct in understanding that REITs are a good hedge against inflation? All of these REITs have been decreasing- some more than others. Are there any that you think will continue to be at risk in a rising rate environment? would you add to any during this most recent decline?
thanks

Q: Hi, should have some exposure to R.E. Could you please pick two of these R.E companies you would prefer, with dividend , growth, and management considerations. This is for a unregistered acct. for long term. Or would you stay clear of this sector for now because of higher interest rates that are likely to come?
also if you have a better suggestion please include it .
Thanks

Q: Hi 5I
I have my rent coverage in TCN. IIP.un, O, and IIPR. The portfolio weighting is fine, I believe(3% total). I am happy with the growth and payout of TCN & IIP
Question: I noticed your preference is to ZRE for income. Should I consider switching into ZRE going forward(TCN for ZRE)? Any other comments are appreciated.

Q: Good morning Peter, Ryan, and Team,

With interest rates set to climb, do you believe that “residential” REITs/Real Estate stocks like CAR.UN, IIP.UN and TCN should be over-weighted in one’s portfolio? My thesis is that less people will be able to buy a house in an already overheated real estate market, forcing them to consider renting an apartment or home. (I assume that real estate is also overheated in the US when including TCN) Do you concur, and if so, can you suggest any additional names? Thanks.

Q: Hi Team,

Can you recommend 5 REITS for investing new dollars for 2022?

Q: Hello again and thanks for your insights on AGNC, I think I will set that one aside for now. Searching the Q&A I have assembled this list of 4 companies for diversified exposure to residential and industrial real estate in Canada and the US (a bit of global with Prologis is appealing). In your opinion does this group provide complementary exposure? Can you suggest an addition to this list or is there one that you would remove?

Q: Can you please comment on these 2 REITS.
How do you see them performing in the next 3 years?
Do you see them as good holdings?
They have been trading sideways compared to TCN.

Thank you