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REITs have really been punished with the market selloff - a lot of Canadian REITs have sold off a lot more than the TSX has. What are your thoughts on picking these up during the decline?

Any specific recommendations on REIT choice or a REIT ETF?
 

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I would buy the index ETF, such as ZRE or VRE, rather than picking an individual company. ZRE down 47% in 1 month. It was likely overpriced a month ago, but that is still almost a 100% return when real estate is in fashion again. Even if that is 3-4 years from now, that's a good risk/reward.
 

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A good REIT ETF is the CI First Asst Canadian REIT, RIT. Was a Fundata 2019 award winner and rated 5 stars by Morningstar.
 

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I would also go with a REIT etf. I use XRE but I know lots of people prefer the equal weight ZRE.

Does anyone have any insights as to why REIT's seem to have been hit harder than stocks?
 

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I would also go with a REIT etf. I use XRE but I know lots of people prefer the equal weight ZRE.

Does anyone have any insights as to why REIT's seem to have been hit harder than stocks?
Because businesses and residents are not going to be paying rent, maybe for 3 months or longer. They are just going to stop paying. Revenue will plummet. Really though, they're only down marginally more than stocks, which still down 30%+ even after the huge rally.
 

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Does anyone have any insights as to why REIT's seem to have been hit harder than stocks?
I thought it's because REITs are leveraged, so they are kind of like the financial sector which is also leveraged. Leveraged companies are more susceptible in a downturn, just as they benefited from an extra boost in the good times. Leverage amplifies both parts of the credit cycles (boom/bust).

REITs typically have mortgages & bank debts.
 
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