Investment Q&A

Q: REIT's are looking interesting at these prices. If you were to invest in only 1 REIT, can be US or Canada. With the thesis being you want to capitalize on the punished sector and get a quality name that has been beaten up and has a lot of upside versus a low risk name that hasn't come down much that will likely not have a ton of upside either. Which reit would you chose to invest in? Thx

Q: GOOD I HAVE THE RECENT RESULTS ON EARNINGS AND ETC. OF AMERICAN TOWER REIT? I THOUGH THEY WERE GOOD. THUS, WHY DOES THE SHARE PRICE KEEP ON SINKING?

Q: Hi Peter,

You had this qn on Jan. 23, 2023:

My sister wants to invest in 10 Canadian stocks that are relatively safe in terms of capital preservation but which offer possible dividend and growth . Hopefully the stocks would be in different sectors that you would recommend.

Now, for a 5 yr + time period, what 11 US quality stock from each sector would you recommend ?

Please deduct as many credits as necessary.

Thanks a million.

Q: WHICH ONE AMT OR CCI IS BETTER FOR THE SHORT, MEDIUM, AND LONG TERM?

Q: FOR AMERICAN TOWER WHAT IS A GOOD ENTRY POINT? IS IT A BUY NOW?

Q: Hi 5iResearch
What is your take on STAG, and does it have a good chance of recovery in the next 12-24 months?
Can you please recommend three or so stocks in the US real estate sector with a good dividend (3-5%) and a reasonable expected growth.
Thank you,

Q: CCI dropped 8% after hours on friday. The only news that I can find is a rather large downgrade by Truist Securities but there was a similar downgrade of AMT without the same reaction. Do you know if this downgrade was the reason for the move in CCI and, if so, the reason for the downgrades. Otherwise, why the move in CCI and would you see this as a buying opportunity?
Thanks for your insight.
Ian

Q: Is it a good time to start buying REITS or should I wait until 1/2 way through next year when we know more about this recession that everyone is predicting?

Can you recommend 1 or 2 CDN and 1 or 2 US for a long term hold?

Q: Seems to me that the market must be offering up some strong, well run companies that, for some strange reason, are trading at much lower prices than what they deserve. These kinds companies pay a good dividend, have a strong balance sheet and their forward earnings look good and dependable. (perhaps you call these kinds of companies 'value' companies). Anway, here's my question, I would like to begin investing in them and would appreciate your opinion on a number of these value companies that I should consider adding to my portfolio. Perhaps 6 Canadian and 6 American. Thanks as always for your appreciated opinion.

Q: What are your 3 best ideas for REITS Med to Long Term {US/CAN}.

Q: Hi,
I'm interested in these US REITs. Can you rank them best to worst for a longterm holder, and comment on the best account type to hold them in?
I know you've said that in general REITs are best held in a TFSA, but are there any exceptions to that guideline among them.
Thanks

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: AMT has been beaten down badly. I have some funds in US $ that I thought I should put to work. This should be fairly recession resilient but will sharply higher interest rates hurt this company when they have any of their substantial debt coming up for renewal? I am never sure what drags down the value of utilities, telcos, reits, etc when interest rates go up. Is it the fact that TINA is no longer true or is it the big debt loads become too big when they have to be renewed at higher rates? Or is it a combo of the two? AMT has not had a particularly high dividend at least recently so I am not sure the TINA effect applies in this situation. What is your take?

Q: What one to select?...that is the question for me. GOOG is trading at 20.6 x earnings and AMT at 43.1 x earnings. Wow what a difference in this metric.....Guess I go with GOOG, right?!......(Even thought keen to add to AMT)
Then there is PLC...keen to top up, like overweight as some investors are bailing out, while future revenue growth is expected to be strong for the rest of this year and 2023. PLC is now trading at 27.4 times earnings. Time to add, right?!...........Tom

Q: Hello 5i,

I read a response to a previous question, which suggested investors who own their home already have sufficient allocation to the Real Estate sector. Just want to make sure I understand correctly before eliminating the sector from my watchlist.

Still, if I was to include a couple of REITs, what is your opinion of CAR.UN and AMT?

Q: I would like you to compare AMT and CCI. Do you think either of them work in this environment, and if so which would you prefer for a long term hold. I note that CCI has a higher yield but I am also curious about their growth prospects.
Thanks for your advice.
Ian

Q: Is Real Estate a good investment in an inflationary environment? I have Prologis, Public Storage and American Tower on my watchlist. Can you please rank them and provide any other suggestion you might have.

Q: AMT is a long time stallworth being pounded, like many others. But how would you feel about it's valuation in this peculiar market? Wait for it to consolidate?

Q: I never bought a REIT because I own another investment condo in Toronto. Would you factor that to your entire portfolio or add another REIT unrelated to residential like MPW, AMT or something industrial? If you would add regardless of having another income property, what would you add?
The condo rent has positive cash flow and the equity is about 3 percent of my overall portfolio. Analytics suggests a 4 percent REIT holding.

Q: Hi 5i,

I received the tender notice from my broker today:

...Appleseed Merger Sub LLC is offering to purchase any and all outstanding shares of common stock, par value USD$0.01 per share, of CoreSite Realty Corporation at a price per Share of USD$170.00 without interest and subject to any applicable withholding taxes, net to the seller in cash.

Terms:
Option 1: Cash (USD) (See Important Notes)
To receive USD $ 170.00 in cash, without interest and less any applicable withholding taxes per share of CoreSite Realty Corporation tendered.
Option 99: Do Nothing (Default)
Holder to retain Security.

A few question I'm hoping you can answer:
1. When is the transaction expected to close?
2. If I do nothing it says I retain the security? What does that mean?
3. I am very sad to see the stock get taken over? What would be a good replacement for it? There aren't that many names in the same space. Would the replacements have the same growth potential?

TIA!

Wayne