Investment Q&A

Q: hello 5i:;
I've just sold SIA; had held since 2016 and about a 4% weighting. Looking for something in the Health Care space, hopefully with a good dividend. Would like something like PFE:US, but as its going into a TFSA, the withholding tax is not exactly enamoring. Any suggestions? Doesn't have to be Health Care, but should be a good stable dividend growth stock. The portfolio is well balanced at the present time.

Q: Do you have an opinion on management? As a shareholder, I was very disappointed to see that one of its homes, Altamont, was called out among the 5 Ontario homes where conditions are deplorable.

Q: Peter; CBC has just reported on a investigation by the armed fire es into LTC facilities in Quebec and Ontario that is quite terrible. Your premier is going on air shortly - seems to me this could cause disruption in those stocks. Do,you think it is serious enough for them to do a “ takeover” of the offending facilities for a period of time? Thanks. Rod

Q: Have held 1000 units of NWH.UN in non-RSP account since 2015 and the ROC is now about 1/3 of what I paid for it. Confused about ROC and how it helps me but I do understand the lowering of the cost base when units are disposed of. Faithfully track all ROC’s for all units held including SPB. I don’t depend on the income from the portfolio but I am in a 43 % marginal tax bracket as a retiree. So when do I dispose of NWH.UN?
Your Q&A database says that NWH.UN is small, has wide geo distribution and not much growth, the distribution is safe but amount is only so so. However, there is a lot of ROC. In this down market, my 2 other similar amount of REs are down also (CSH.UN and SIA, 35 and 44% respectively). Also, have similar amount of AD that is down 52%. I am about “even” on my gains and tax loss sales so far for 2020 taken early in January but could use some carry-back for last year’s gains. Thinking of a trade of selling NWH and AD and perhaps CSH and SIA, waiting the 30 days before buying AD back unless you could suggest a suitable alternative proxy for the interim (or just buy CAR.UN instead all in non-RSP). Or would best option be to let it simmer and revisit during tax loss season to see if any of these have sufficiently rebounded? Have I missed something? Maybe the best decisions taken are those decisions that did not have to be taken.

Q: There are apparently class-action suits being launched against Revera and Sienna relating to covid deaths in their homes. Before long this may well involve Extendicare and Chartwell at a guess. How meaningful to a company's future would you expect these suits could be? Are there any legal precedents (re: alleged lack of proper patient/resident care) involving senior homes in Canada? I have held both Chartwell and Sienna for years, and done well with them up until all this. I have reduced both by about half, but do you think it is just better to exit this sector for now?
Thank-you

Q: Hi 5i Team
I hold these 3 REITS and would like to consolidate to one. Which would you advise to hold for long term considering recovery and dividend security?
Thanks

Q: What is your interpretation of today's first quarter financials.
What is your view of this business going forward.
thank you

Q: The senior residence industry is being highly scrutinized by the public, the nurses union, the government as being understaffed, poorly paid, and inadequately trained at some long care facilities. With that in mind, costs have to increase and corporations who run them will be under pressure. I see Trudeau may impliment minimum wages for the workers at these facilities, maybe $5 per hour increase. The stock prices have already suffered and the dividends they pay may be under pressure. Would you continue to hold or sell and wait until this issue is dealt with.

Q: Hi 5i Team:

I own less than one percent market value of SIA in my portfolio, which is down 32%. I am thinking to take the loss and buy something else. What is your take to sell or hold.

Thank you.

L

Q: Thinking of selling SIA and BPY and replacing with ZRE/ Would this be a good move?

Q: The assisted living industry has been hit hard by the pandemic. Do you think this sector is going to face more issues and for investors, is it best to steer clear even though the baby boomer senior population in Canada is growing?
Between CSH.un and SIA, is one better than the other for 3 yrs hold and why? Or is it best to sell both names? Many thanks.

Q: Can I have your opinion on SIA for generating income in a retirement portfolio? How does the dividend look?

Q: HI 5i, I need to transfer some dough from my RRSP to my TSFA... would you sell sia(rrsp) and then buy it again for my TSFA...... paying 8% and moving up... tks for everything and stay safe

Q: Hello,

I note that each of these has sold off with the market and are now yielding between 7.14% and 9.4%. Unless people are moving out of these homes in fear, I think whatever vacancies are caused by Covid-19 will be filled by the aging population. Being on sale to the extent that they are seems overdone given that they continue to function and receive their revenues. Do you agree and would you be a buyer of 1 or all of these at these levels for growth and income? Please indicate a favourite if you have one and the reason why.

Q: The above TFSA holdings have not performed well and of course, are not eligible as tax loss harvesting. This is one of the potential downsides of TFSA investments. Please give me your thoughts on which ones you would move on from and without worrying about sectors, some replacements you think will recover well. Thanks again for your guidance.

Q: SIA continues to get beaten up. What is the real concern on this company? Isn't there a waitlist for senior care? Long term living? Are people worried that all the seniors are going to die off? I just don't really see the risks to this. Doesn't it have a decent amount of government support as well? The risk / return seems compelling here.

Am I missing something?

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: Sienna now has an 8.8% dividend. Would you consider it to be reasonably safe and is any of it return of capital.
Thank You
KEN

Q: In a response to Manish on Feb 20 you said occupancy was 98.2%. In reviewing SIA's report, this figure refers to LTC occupancy. It appears that total property occupancy was 87.9% in 2019, down from 91.7% in 2018. Could you clarify which figure is the appropriate one to use. Also, how does total occupancy and any yearly change compare to the other major players in senior residences.
Thank-you, Grant

Q: After perusing their financial reports of yesterday, I am surprised at the drop in Sienna. While it wasn't any great improvement, I did not see any significant problems, and the payout ratio still is fine. I was hoping you might shed some clarity as to what might have caused this selloff?
Thanks!
Paul K