Investment Q&A

Q: Seasons Greetings to all at 5i, and fellow members as well!

Our Real Estate holdings include DIR.UN, FSV (thank you 5i for this stellar pick!), and XLRE. Portfolio Analytics indicates that we should increase weighting. I was considering adding to DIR.UN, or starting a new position in CHP.UN. If this was your portfolio, what would you do, or is there even a better opportunity? Thanks as always.

Q: I've been looking to REIT's with the intention of adding a level of potential inflation protection. CHP.UN seemed to me like a good REIT that would appear to have some resilience - even if Commercial Real Estate in general would take a hit. However it's the "shopping centers anchored by supermarkets" description that gives me pause. The "supermarket" part gives me a degree of comfort. The "shopping center part".....not sure.

Are you able to give me your always valued opinion please?

Q: If interest rates continue to decrease are REIT's a good investment strategy compared to dividend stock for income investing?
Please rank your top 5 REIT's

Q: Can you provide your input on these REITS ?
Please sort them for buying first to least preferred.

Also, suggest which of these you wouldn't buy, if any ? and why ?

Q: Hello,

Do you expect rates to fare better over the next 3-5 years as rates gradually normalize?

Can you give 1-2 names that are liked in the residential, commercial and industrial spaces?

Thanks!

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: Just wondering if you are still comfortable with this REIT.

Have been looking for a commercial property REIT for purposes of diversifying holdings away from multi-family. And I know Choice acquired the old Canadian REIT years ago, which I thought to be of very high-quality at the time.

Choice appears to have less risk due to its size (705 investment properties) and the loan to value ratio appears commensurate with peers.

However, there seems to be a huge number of equity units outstanding after factoring in the exchangeable units. As well, what really appears unusual for CHP.UN is that it trades at a significant premium to NAV whereas most entities in the Canadian REIT universe currently trade at a discount to NAV.

Thank you

Q: I want to add an REIT to a non registered account. Which one of the above would be a good choice.

Q: Good afternoon,

I know that there are diversification benefits to owning ZRE vs individual REITs in Canada. But for a 1-2% portfolio weight, I wonder if I might be better off with a name like CHP.UN purely for income given the quality of their largest tenant.

I have owned ZRE for awhile now, but have to admit to being underwhelmed by its performance.

Thoughts?

Thanks as always.

Thoughts

Q: Hi 5i,
I currently own CHP.UN and L.PR.B. I would like your opinion, is there value in selling CHP.UN and buying WN,PR.D to strengthen my portfolio or should i just buy more L.PR.B. I looked but don't really understand the relationships here.

Q: Hi 5i, looking for help taming the RIETs part of my portfolio as i own all of the above. Can you help me with selling some REITs (anything I've doubled up on or is not the best choice). I am planning on redistributing the funds to the remaining REITs. As usual your help is appreciated, if you could rank them also that would be great.

Q: How would you rank AX.UN, CHP.un, CHW. DOO, ET, FN, HPS.A, ISV, LB, QSR for overall return with some growth. Please rate as well if you would Buy, Sell or Hold Each one of them. Would you prefer at this time not to invest and just hold cash?

Q: Hi. could you please rank these REITs in order of safest business model during a recession and relative security of distribution. Thanks.

Q: For income and some safety, do you see anything not to like about these four REITs?

Thanks as always.

Q: Good day 5i Team,

I have some cash sitting around and would like to build a portfolio.
There are few names that I selected, the goal is to have a stability, potential growth, dividends and maybe some covered options selling opportunities. I will hold these in my TFSA.
What do you think of the names? What would you add? What would you recommend.

Thank you as always

Q: Would you please rank these 12 REITs for future growth prospects, where 10 is the best prospects & 1 the worst. Also would please indicate what REIT assets contribute to future growth & those REIT assets that have very little future growth. Thanks ... Cal

Q: I have modest positions in these two holdings and am thinking of selling the Choice prop. REIT and buying more TXF. Do you have an opinion on this move. I recognize that they are very different holdings but my reasoning is as follows.
Chp has a nice dividend but very little growth. Txf has now dropped in price to a point where the downside potential seems more limited than its upside potential. It also pays a dividend that is enhanced by the covered call strategy. I know you prefer to own tech companies directly (which I do) but have also found Txf to be a way to own a basket of tech that would be hard for me to reproduce in my own portfolio. Any thoughts or opinions would be appreciated. Thanks.

Q: are any of these something to have as a good investment ?

Q: Is it better for me to hold these companies in a registered account?

Also, in terms of their portfolio diversification, do I need to own all four?

Q: I am interested in REITs for potential retirement income. However, when one looks into the details of the “dividends” often a significant portion of the yield is return of capital. Are there any Canadian reits that make distributions that are largely just income and if so can you advise of same. Thanks Bill