Investment Q&A

Q: True North REIT is paying 8.41% as of today. Is this dividend sustainable and is the share price solid?
Please recommend two other REITs with a relatively generous but safe dividend for steady income? Thanks.

Q: I am looking to increase my allocation to the Materials and Real Estate sectors. My current exposure is only through various index ETFs. Can you provide 3 companies for each sector that trade on the TSX to have a balanced exposure?

Q: Would you please do a comparison of these two stocks in regard to stability, growth, dividend and valuation. I currently own both but am wondering about the merits of liquidating MI and putting the proceeds into CAR?

Q: Thinking of getting back into 1 or 2 real estate companies. Looking at IIP.un and MEQ. Can I have your opinion on these thwo? Are there others you would consider over the next 3 years?

Thank you, Mike

Q: Hi
Am I correct in understanding that REITs are a good hedge against inflation? All of these REITs have been decreasing- some more than others. Are there any that you think will continue to be at risk in a rising rate environment? would you add to any during this most recent decline?
thanks

Q: Can you suggest 2-3 Reits for a RIF considering timeliness, safety, dividends and modest appreciation.
Thank you

Q: What are your thoughts on this company? To quote "FCR remains one of a small number of REITs trading at meaningful valuation discounts versus pre-pandemic (P/NAV 74% versus 86%, P/AFFO 16.0x versus 20.0x)" I understand its debt is high but has been reducing it aggressively pre pandemic.
I know you like GRT.UN and CAR.UN, wondering where FCR ranks in relation to these 2.

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: Hi, should have some exposure to R.E. Could you please pick two of these R.E companies you would prefer, with dividend , growth, and management considerations. This is for a unregistered acct. for long term. Or would you stay clear of this sector for now because of higher interest rates that are likely to come?
also if you have a better suggestion please include it .
Thanks

Q: I have not seen any questions on Starwood for a while. It has a good yield. Is it a buy at these levels?
Thanks
Ian

Q: May I get your opinion on this company , after it's recent earnings release, ...please and thank you

Q: Hi 5i Team - Could you provide two or three top picks in each of the following sectors: Real Estate, Consumer Staples, Financial, Industrial. Any market cap is fine but with a focus on mid cap. Also with a focus on Canadian Equities.
Thanks.

Q: Hi group - I am a medium risk investor - Can you please give me your top picks + % weighting in the top sectors - Financial, Industrials, Materials , Energy, Health care , real estate, Tech Thanks

Q: This is a follow-up to our question from last week (see: https://www.5iresearch.ca/questions/140708).

Based on your response that nothing in the list gives you much cause for concern, we would understand this to imply none of the 30 stocks would be considered a "sell" today.

Please divide the 30 stocks into a pair of ranked (best to worst) lists, one of "buys" and the other of "holds". As well, for each of the "holds" indicate the principal rationale for caution.

Q: What are your top three value picks in the Canadian reit sector. What do you think of the sector today.

Q: About 1 year ago we created an equal-weighted 'balanced' portfolio of 30 Canadian companies in a non-registered account. Most were chosen from companies either covered by a 5i research report or included in a 5i model portfolio. The remainder were chosen, based on the 5i Q&A section, from what appear to be 5i sector favourites. All purchases are made with the intent to be long-term holds (10+ years). As well, we intend to increase our investments over the next 2-3 years, and then adjust over time as needed. Currently the amount invested represents ~40% of the eventual total.

Although a goal is to keep the portfolio roughly equal weighted, of the 30 companies, the following 14 were acquired in 3 purchases (full position) and currently have weights in the 2.31% (SHOP) to 5.00% (ATA) range for an average of 3.71%: CSU, MG, GSY, WSP, LNF, ATD, ATA, SLF, BAM.A, BIPC, FTS, DOO, SHOP and TFII. The remainder were acquired in 2 purchases (2/3 position) and currently have weights in the 1.98% (BEPC) to 3.17% (TCN) range for an average of 2.56%. So, overall, the weightings currently range from ~2% to ~5%.

Over the next 6 months we will invest another ~25% of the eventual total. As we make additional purchases, we need to strike a balance between keeping the weights roughly equal while taking advantage of market opportunities. Please provide some broad guidance/wisdom.

Of the 30 companies in the portfolio, which 10 would you have the highest conviction in today? Please rank them.

Are there any of the 30 that you might consider as candidates to be replaced because there are better options, and if so, what replacements would you suggest and why (disregard tax considerations)?

What additional 3 Canadian companies might you consider adding to the portfolio and why?

As always, thanks for the great service!

Q: I'm overweight in real estate. Which would you sell and why?

Q: Good morning Peter, Ryan, and Team,

With interest rates set to climb, do you believe that “residential” REITs/Real Estate stocks like CAR.UN, IIP.UN and TCN should be over-weighted in one’s portfolio? My thesis is that less people will be able to buy a house in an already overheated real estate market, forcing them to consider renting an apartment or home. (I assume that real estate is also overheated in the US when including TCN) Do you concur, and if so, can you suggest any additional names? Thanks.

Q: For context, this is a locked in RSP which will likely turn into a LIF and I am looking at this in terms of a dividend stream. Cashed in some cnq and have cash to deploy.

Of those mentioned, for relative safety of capital, good yield and yield appreciation, how would you rank these (cdn or us it does not matter). For eg, ABBV has an attractive yield but I am unsure of patents expiring etc. You thoughts.

Thank you

Q: Would you consider apartment REITs as good inflation hedges? Rental rates and property values should presumably increase in an inflationary environment. However, the currently low dividend yields on these REITs, I assume, could cause some weakness in a rising interest rate world. What's the right way to look at these? Thank you.