Investment Q&A

Q: I have all 3 of DRG.UN, D.UN & STB in my wife's cash acct but only because of their very high monthly dividends - averaged at about 8.5%. However, I want to drop 1 & while STB would seen the obvious choice as it does not move the needle very much, I am concerned as to the ongoing viability of DRG.UN as related to Brexit, etc. Your opinion - Thank you.

Q: Dream Office REIT is underperforming the REIT index especially recently. It has been trying to improve the balance sheet but is again down today after publicity over a possible sale of part of Scotia Tower. It seems to be very unloved.I have been waiting for a better price to sell with some frustration. Is there hope for better sentiment and price? Thanks for your opinion

Q: Hi Peter & Co.,
Can you please comment on Dream Industrial REIT's latest quarter? I hold this as part of my income-based portfolio. Other than interest rate risk, are there any company-specific risks you see with this company? Is the industrial real estate space still a better place to invest than office space REITs?
Many thanks,
Brian

Q: Which of Slate Office Reit and Dream Industrial Reit is cheaper? WHat are the payout ratios of each - thanks.

Q: Hi Guys

What is your take on Dream Office Reit

Thanks Mike B

Q: In an almost zero percent interest rate environment what sense does this new direction make? I agree with eliminating the DRIP as it made no sense to issue new equity at the current unit price but the distribution cut and selling properties seems to be misguided. Payout was below 100% prior to this cut. Your thoughts please.

Q: Lots of changes. They seem to be raising a lot of liquidity; selling assets, cutting dividend, stopping DRIP, and increasing credit facility. Doesn't seem to make sense. Do you think there are skeletons in the closet that are not apparent that they are preparing for? Could things be worse than they look? Or are they eyeing opportunities? Would you be a buyer?

Q: Hello Peter and Team,

Dream office seems to be on a downward spiral. How stable is the dividend at 13%? How is it's valuation compared to others in the sector? As well, would you recommend adding to a position at todays valuation?

Thank you for all your hard work,

Wes

Q: After the big dip - it looks very attractive - but I have 2 questions: 1) What property or properties caused a loss of 132mm in the second qtr. of this year & 2) what percentage of their total portfolio is in the West - excluding BC? Thank you.

Q: What is up with Dream Office? Yield in now 12.42%, it has fallen over $3 in the past month. What do other people in the market know that we don't? Is the dividend reasonably safe?

Joe

Q: Huge tax loss selloff today and now trades at 40% discount to NAV. I have owned this for about 7-8 years and am strongly considering averaging down (I own a basket of REITs). The selloff seems way overdone, would you agree? Thank you.

Q: Hi Peter & 5i Team,

Considering your reply and (I believe) your view that interest rate rises aren't coming to Canada any time soon (and probably not substantial rises)
>> 5i Research Answer:
>> D.UN is a fairly sizeable REIT at a good valuation. It had a >> good third quarter, with solid occupancy of 92%. The payout >> ratio is fine at 80% and cash flows are supportive of the
>> dividend. We would be fine with a long term hold here.

What would your opinion be for a current, half position, holder considering accumulating more of D.UN (current REITs are 3.5% of overall portfolio). I sense a lot of negative sentiment in the REIT market but I generally have a positive, longer term view.
I'm considering initiating a half position in CSH.UN as well before year end but in no rush to commit to these purchases.

Thanks, I eagerly await your valued opinion.
Mike

Q: ho folks:

in feb 2011 i purchased this at $30.30 (in rrsp)

-- the income rec'd is very close to the drop in capital value

-- ie, i have rec'd about 2k in income and the shares are down about 2k - so i am about breakeven (ish)

question: understanding the oil/alta problems; am i better to sell and buy say a SIA/EXE or ZRE/XRE or ??, OR is D.UN a blue chip that is suffering unduly?

sell, or hold and wait for eventual recovery?

this is my only real estate holding

thanks

Q: Sounds like the banks may be closing some branches over the next few years due to more digital banking- which REITS have a lot of bank tenants and may be affeected?
Thanks

Q: I hold FCR for income and am in a small profit position. Would you trade it for D.UN? Thanks

Q: Good Evening
I am going back to 2005 and note that D.UN has not cut their dividend for the last 11 years. The current yield though of over 10% suggests that a dividend cut may be in the cards. What is your opinion of this company? I am holding it for several years.
Do you recommend averaging down, holding or selling?
Do you anticipate a cut in the dividend?
Thank you

Q: Dream Office REIT continues to get punished. Office real estate is clearly an out of favour asset class and it seems to me could remain that way for a few years (not to mention the weakness in Alberta). At the current attractive valuation, is this a reasonable holding for a patient investor content to collect the 9.60% distribution yield?

Q: Given the current economic and political situation in Alberta, what are your views on D.UN? It appears it has approximately 27% of its assets in Calgary and Edmonton. Any alternatives you would recommend?

Q: Hi Peter and Team!!! I hold both BDT and Dream Office Reit D.UN(who thought of that name I wonder). They both pay a good dividend. I am down on what I bought them for. Should I continue to hold, or is there trouble on the horizon? Technically, I am holding them for the dividend, but am open to suggestions. Cheers, Tamara

Q: Good morning
D.Un has dropped a significant amount since 3Q report. The only internal event in this period was the Disposition of some LPB units to Dream Industrial REIT.

Can you explain what this transaction means eg have they made an investment in DIR.UN? Is the transaction material? Is the dividend safe at 9%+?

Thanks for your insight & merry Christmas

Ernie