Investment Q&A

Q: At this point from income point and perhaps a hold for 5 years...would you prefer D over REI.un...currently hold 5% Riocan and 5% H&R..thinking of switching out Riocan for Dundee...what are your thoughts?

Thanks!!

Q: Hi I reading REI.Un results what am I missing .The market reaction to the results bogles my mind.
Stan

Q: Hi 5i Guru's

Re; Rei.un (Riocan)

I am considering adding RIOCAN to my TSFA. It has been beaten up with the REIT sector and looks like a reasonable entry point now. I think Shopping centers are in the cards for the long term, providing a secure revenue stream. The close to 6% dividend is therefore likely sustainable and subject to increases. And lower interest rates seem to be here for some time to come.

Would you recommend RIOCAN, or do you see a preferable name in the REIT sector.

Thanks so much,

Q: Hi 5i team. I'd like to put in my 5 cents worth to give contrast to Lance's question on REIT's and specifically Riocan (REI.UN). From my perspective as an income invester, the pay-out and it's ability to keep up with inflation is more important than the value of the shares. I bought REI in 1997, soon after its debut for $8.75. Over the years, the ACB has declined to zero and the yield at cost (present yield divided by original cost as percentage) has gone up to 16.11%. Depending on how you calculate inflation, it has done pretty well as a taxable investment and because of the ACB situation, it is difficult for me to sell. I don't think it has done too badly compared with the TSX. Going forward is a different matter because, as Lance has pointed out, we are going the opposite direction as far a interest rate is concerned. Should I sell and paid the hefty tax bill? Thanks. Henry

Q: I hold 6% in rei.un would you reduce this as of june 20 I was at break even on cost but have held it for 2 years .
Stan

Q: Hi, I have a large holding with REI.un and wondering if I should hold it or sell (at a loss) Do you know if they have any debt that would complicate things with interest rates climbing?

Q: In your model portfolio, I see that there is only one "real estate" holding (FSV). In this sector, I own two REITs in my RRSP and realize that my weighting is way out of whack: (14% in REF.UN and 12% in REI.UN.) I am gradually attempting to diversify my holdings, using stocks that you have chosen in the model portfolio, and would like to know which of my two REITs to keep (or if neither or if both) and what percentage REITs should be in a portfolio. I have done very well with both of these REITs, especially REF.UN, but it's a bit painful to see these two stocks dropping daily. Thanks for the great service you provide.

Q: Could I ask your opinion on Riocan (REI)? Thanks for your useful information.

Q: Hi,
I read a Globe article today about the bite that on-line shopping is taking from malls. Would it be wise to move some of my REI.UN to an apartment focused REIT?
Thanks!

Q: Peter,

I am recently retired and I am looking for investments for my RRSP. For tax reasons, I would prefer not to add equities to the RRSP and have been looking at income trusts. Are there any that you can recommend, beyond those that you have reported on to date?
Many thanks,
John