Investment Q&A

Q: HR.UN is down below the point at which it announced a share buyback (on June 4.) Is this a 'sell' signal?

Q: Q1 2015 - comments please.

Q: hello Peter, Will you prefer AW.UN ( as it is in income portfolio) over HR.UN, for income, stability and overall return. I am holding HR.Un for over a year and it is trailing AW.un by a wide margin. So thinking of switching. Do you advise it. your opinion, please. Thanks.

Q: HI TEAM

I am interested in adding some REITS to portfolio. I own none presently.

1. is this a good time to look at REITS ?
2. How would Bank of Canada changes in interest rates affect sector (the 5i mantra seems to be that earnings and interest rates are the key to looking a company.
3. based on data base you have access to can you classify the following according to the 3 most important metrics to look at for this sector (what are the metrics ? and their values) I think these 3 are the best looking but have trouble with confidence in globe and mail data

HR.UN-T
D.UN-T
AX.UN-T

how would you rank these 3 or do you think others are better from a "value" or safer (maintaining dividend point of view) ?

many thanks

Ernie


by the way, if I understood from my readings on REITS, I am more tax advantaged to hold them in a registered account than an open account ??

Q: My only REIT - AP.UN - seems to have gone into hibernation, from being the top performing REIT for the past few years (highest combined return) to seemingly losing all momentum.

I am looking at flipping it for HR.UN that has a larger market cap $6.7 billion vs. $3.0 billion, higher yield 5.6% vs. 3.8% and more positive overall TA numbers for the short and long term prospects.

Do you endorse this switch?

Thanks.

Q: I heard that REIT would be considered a separate sector rather than a sub-index in the TSX index as of 2016. Is that true? How would it differ from the XRE and other ETFs? What specific REITs would compose this index? Would it be a good investment to buy the major REITs as HR.UN, CAR.UN or REI.UN now or wait until the end of the year as major index fund would presumably have to load up on those REITs to replicate this new sector?
Happy New Year to all.
Jean

Q: At present I have a %5 weighting in HR I am considering a switch to BPY at the same for increased growth and income. Your thoughts please.

Q: H&R creates a strategic alliance with PSP Investments and Crestpoint through the sale of an interest in over $1.4 billion of industrial properties to launch a new industrial platform
8:00AM ET on Wednesday Dec 03, 2014 by CNW Group
H&R Real Estate Investment Trust ("H&R") (TSX: HR.UN; HR.DB.D; HR.DB.E and HR.DB.H) announced today that it has entered into agreements to sell to an affiliate of the Public Sector Pension Investment Board ("PSP Investments") and affiliates of Crestpoint Real Estate Investments Ltd. ("Crestpoint") a 50% interest in a portfolio of Canadian industrial properties and a 49.5% interest in a portfolio of U.S. industrial properties (collectively the "Portfolio") for a total purchase price of approximately C$731 million. H&R will remain the property manager and collect industry standard fees. The Portfolio consists of a total of 101 properties comprising approximately 19.5 million sq. ft. of industrial space located in Canada and in the United States. The sale transactions are expected to close in two tranches, in December 2014 and in February 2015, subject to customary closing conditions.

This was the announcement that sent HR on a new plunge the other day. I found it extremely odd ball that the news did not come from HR rather then the secondary party. However be that as it may, what exactly in fundamental terms does there mean for HR investors? In technical terms it means sell calls, buy puts and watch out for a dividend cut. What actually is taking place here?

Q: Following up on your recent answer re H&R distributions. You note that 58% of the return is "return of capital". I have always considered "return of capital" as giving me my own money back in the sense that it changes my adjusted cost base by the same amount so that I end up paying tax on it when I sell the shares. ie it is giving me my own money back because the company did not earn enough to fully cover the dividend and is therefore not a real earning.
Can you enlighten me on this? ie is "return of capital" really a benefit in the long run?
Thanks

Q: Hi Peter, in the context of taxation, is the income on H&R Reit a dividend or interest? In your opinion, what percentage of a portfolio should be invested in Reits? Thanks, Gervais

Q: I've noticed HR.UN has dropped for several days but can't find any news that it might be reacting to. Can you help?
Edgar

Q: In the past week HR.UN has pulled back considerably, even moving lower than its 200 moving average. Was it due to the latest earnings release? Would you consider this a good entry point?

Brian

Q: I am looking to add a REIT to my portfolio and have generally seen positive commentary from 5i on HR.UN. I like the yield and the 3% DRIP incentive however I'm always looking a little upside in the share price. Given this, what is your current opinion? Should I be looking at other REITs?
Thanks!

Q: In the past weeks our full position in HR.UN has dropped almost 2.5%. What would you tnink of selling it and dividing half of the money between REI.UN and AX.UN, in which we now have 1/2 posn's, and half into NFI in which we have a 1/4 position? We do depend on dividends for much of our income.

Q: 5ireseach
Which would be your top two recommended (REITS) ? For a longer term hold. Or is this a wrong time to be investing in reits?
thanks
Cal

Q: Good Morning 5i,

Till more funds become available for me to invest I’ve decided to strengthen my portfolio fundamentals one sector at a time, starting with the REITs.

I currently own Senior Housing Properties Trust (SNH), RioCan Real Estate Investment Trust (REI.UN), Northern Property Real Estate Investment Trust (NPR.UN), Lexington Realty Trust( LXP), HCP In. (HCP), Dundee Real Estate Investment Trust( D.UN), Cominar Real Estate Investment Trust( CUF.UN), Chartwell Retirement Residences (CSH.UN) , Calloway REIT (CWT.UN).

I am willing to sell a couple of my holdings and buy H & R REIT and HealthLease Properties REIT. Your suggestions please, along with any other ideas you may have.

As always your help is appreciated.

Q: Hello Peter,

What do you think of HR.UN at this time? It seems to go sideways. Some other recommendation in the group?

Monika

Q: With the Reits down am looking at investment income in reits what in your opinion would be best Rio-can or HR

Q: Hi Peter & 5i: Am I missing it or is there no link from your Members page to your model portfolio?
My real question is whether you could take another look at the answer you gave to Ken on his ZPR question? In particular the comment that: “... we would not choose a single company over an ETF.” Presumably that isn’t generally true or else your model portfolio would only hold ETFs. Keep in mind that Ken’s question was about adding a holding in the context of a larger portfolio. Presumably there are times, at least, during which you might prefer the prospects of a single company over the index (or average return) for the relevant sector. So are you really just saying that right now you don’t prefer HR.UN’s prospects enough to outweigh any perceived individual company risk – or do you mean something more than that? Thanks!

Q: Hi Peter:
I am looking for income
I have positions in Reits including Riocan, CSH.un. H&R
Calloway and a smaller position in Dundee and Granite Reit
the last 2 has taken a bigger hit than the rest of the REITs
If I have more funds coming in to invest, which REIT of the above would you consider to add to ? I have heard of Boardwalk
but unsure if you cover it or not ?
Many thanks! Great show on BNN, Peter gave us alot of very valuable information!