Investment Q&A

Q: In a previous question in March you answered that MEQ was a much more expensive stock then Boardwalk BEI-un. MEQs book value was .5 at the time vs a .7 from Boardwalk. How did you make that judgement that MEQ was much more expensive? Since March boardwalk is down 15%, does that make it significantly less expensive then MEQ at the moment?

Also is it safe to assume IIP.un has pretty much has the same strategy as MEQ albeit an Eastern Canada concentration? Its book value is 1.1 vs a .6 from MEQ. Its ROE is significantly better then MEQ but P/E ratios are roughly the same? Does that justify the lower book value of MEQ or am I looking at things wrong?

What are your 3 favorite stocks in the real estate market.

thanks

Q: Hello,

Do you consider boardwalk as a good long term hold. It would be a new position for me. I do already have real estate exposure (7 - 8 %). This would be new money. I was also looking at H&R but I prefer the usual stability of apartments vs commercial. Thank you for your thoughts. Maybe a mix 50/50 would be a good idea.

Q: Your thoughts on the latest earnings - the market clearly disliked it.

Q: Hello 5i Team

I have equal dollar amounts in Boardwalk REIT (BEI.UN) and Northview Apartment REIT (NVU.UN). The REITs are held in a taxable account.

After release of the 2nd quarter results last week and the resulting change in share prices, I am down 5 % in Boardwalk and up about 1 % in Northview (after a long 2.5 years).

Should I sell my Northview and invest in Boardwalk for the long term or invest in Killam / Canadian Apartment to diversify my apartment REIT holdings from a apartment location strategy (i.e. Boardwalk is concentrated in Alberta, versus Killam is more eastern Canada and Canadian Apartment is more Ontario focused).

Thanks again for the great service.

Q: In reagrds to your model portfolio update;

Sell full position in BMO Equal Weight REIT ETF (ZRE, NR)
Trade Rationale - We see a few headwinds facing the broad REIT industry. Higher potential rates may make this segment come out of favour while also increasing costs to the REITs themselves. Add in high property values and pressure on retail stores, and we think it is time to be more targeted with any REIT exposure.


I concur and shifted my focus to smaller, higher yielding albeit riskier REITS like PRV which is flat since purchase not including DRIP & NXR just bought. My question is what REIT's would you recomend for this targeted approach and retail concerns, I am familair with some of your more popular REIT suggestions so hoping to hear some diferent names.

Thanks!

Craig

Q: Would you be kind enough to rank these companies as to your current preference & explain why? How does the insider ownership play a factor? Would the long term chart comparisons, figure into your decision? With interest rates possibly moving up in the USA & the Canadian real estate mkt. rather extended & a Federal budget on our doorstep, your comments greatly appreciated. Thanks for the hard work. Ken

Q: I hold smaller positions of the above collection of what I would consider to be "second tier" income stocks in an unregistered account. I also have BIP.UN, CSH.UN and HR.UN in a TFSA. I want to raise a bit of cash before the snow melts; which two or three of these would you sell first?

Thanks for the wonderful service - I've just renewed again!

Q: I'm looking for a recommendation on a REIT (I have no exposure currently). In light of the interest rate outlook, do you expect these investments to be hit materially as rates rise. What about BEI.... it has been beaten up due to the Alberta exposure. Would this be an opportune time? Appreciate your thoughts and this service. Jim.

Q: Boardwalk announced another lousy quarter! Generally, real estate markets move with a lag to the economy of about 6 to 9 months. Do you think Q4 could be a trough for Boardwalk? I am accumulating shares at this level. I think it is a good entry point for a long-term investor to add multi-family properties (defensive segment) as a good valuation. They are using this opportunity to acquire new builds and renovate their existing portfolio as well.

Thanks,
Jason

Q: bei.un has been rising but mainstreet is stalled.
Similar companies, similar geography.
Any thoughts.

Thanks Ian

Q: Good morning,

I am managing 2 portfolios, mine and my wife. Both portfolios are oriented toward income but with some growth as well. Both portfolios are diversified and has at least one company in each of the 11 tsx sectors with a total of 20 companies in each portfolios with a 4% to 6% weight in each of the 20 companies.

Both portfolios has a reit, Boardwalk (BEI.UN) and Milestone (MST.UN). The reason that we have invested into these reits is that both has assets in the U.S. and are in family residential.

With the interest rate moving up in the U.S. is time to sell these two reits?

Thank you

Paul P.

Q: Hi

With Alberta real estate bottoming, can you suggest a REIT with heavy real estate exposure in Alberta? Thanks

Q: Looking for yield with some growth and would appreciate your opinion of each of these.Would appreciate your ranking in order of preference.

Q: Hello Peter & Team, as it stands right now BEI.UN shares have decreased by more than 12% whithin a week. I have a full position in BEI.UN. Should I switch to another REIT? Thank you, Gervais

Q: BEI.UN getting hammered last few days because of concern over rentals and general poor state of economy in Alberta due to weakness in oil patch. Would you agree this is a good buying opportunity?

Steve

Q: I currently hold a 2% position and would like to increase my REIT holdings. Would you suggest a single position or an ETF ? Would you continue to hold Boardwalk ?

Q: Hello Peter and the 5I team

I have been having a debate with a friend as to how interest rate hikes affect stocks (especially REIT's, pipelines and utilities shares) in the North American stock markets (FED and the BOC). His take is that it only increases the cost of borrowing. My take is that it 1.increases the cost of borrowing, this would put pressure on all businesses not just pipe, REIT's and utilities. It would actually put pressure on all asset classes. 2. Make bonds a more attractive asset class to own compared to stocks. The risk/reward balancing act would slightly tilt in the favour of the bond over say REIT's, utility or pipeline stocks which are generally known for their safe dividend yields. So people would flee the equity market and go toward the bond market causing the stock prices to fall. Would you say that I am more right then my friend??? Is there more to it then my rather simple explanation???

I was curious about BEI.UN, what is the pay out ratio? What is the P/B ratio and would you consider this a ok place to put money?

Thanks

Q: Boardwalk is trading in the low $40's due to its exposure to Alberta and the collapse in the oil price. With a net asset value in the low $60's, crude oil close to a bottom (hopefully!) and very little exposure to Fort McMurray itself, would you recommend initiating a position for a long-term hold (more than 5 years)?

Thank you,
Jason

Q: Good morning folks,
Would you be able to give the pro,s and cons of buying BEI.UN at this time? I know interst rates possibly could start drifting up soon but from what I can find out they have a six percent yield with a sixty percent payout ratio ,also have come down a long way from their highs. The "Alberta" influence could last a while longer but I don't think we'll be in the tank forever .

Thanks again,
Larry

Q: I noticed that even though BEI.UN only offers a yield of slightly under 3%, it has combined returns in double digits for YTD, 1 year, 3 years, 5 years, and 10 years. That's impressive.

Do you think this trend can be continued? I'm interested in taking a major position in BEI.UN (say around 10% of my portfolio).

Thanks.