I'm a bit selective on which REIT I want to be partners with. I only own Choice and now RioCan.I have a couple others I like but it the most important thing in this sector is what I don't buy imo.
What are you buying? 2020
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Interesting. I bought near a local bottom but today they had great earnings report but dropped -15% right away.
What's interesting is that I watch how my portfolio of 17 stocks and 1 ETF (all TSX) is reacting to the current swings of the market during these times of high volatility. I'm trying to beat NASDAQ while having only TSX stocks (so far) and less tech exposure. I obviously don't think I'll beat NASDAQ long term, but who knows...
7 months later, I'm following NASDAQ quite well, but that's the beginner's luck because the market has been pretty bullish after the crash.
In the last couple of days, I'm on a strike beating NASDAQ every day. Now I have this REAL holding (mid-size in my portfolio) that dropped -15% but my portfolio is currently up +0.16% while NASDAQ is up +0.15%.
That's why I don't want to hold big indices or too many stocks, it's useless. Just pick enough in a pool of winners and even a sudden loser won't effect that much the overall portfolio.
Anyways, I plan to add some small ETF for global diversification like DXG holding only about 25 stocks diversified in every sector worldwide and performing awesomely. My style is stock-picking and ETF-picking. Other strategies aren't bad, they are just adapted to other investment styles which fits the personality of the investor.
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Speaking of REITs, after being cashed out of NVU, I took the money and bought ZRE. I never intended to use a REIT ETF, but I have been stumped what to buy in the sector. I still own BPY, AX, HR, REI, FCR but as of today, ZRE is 25% of my REIT allocation.
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I own both ZRE and REI.UN.
The REI.UN chart tells the story - not a pretty picture. I've been reading their press releases. the CEO is retiring and being replaced, but that won't make the virus disappear! Last I read was that they were receiving more overdue rent payments (I thought I saw 90% recovery?). That said, I think I saw news that announced rent freezes for the next 8-12 months - which could also put a lid on returns from REIT's - at least those that invest in apartment buildings.
ZRE has been very good and reliable - so much so that I am considering moving $ from a GIC ladder and buying more in Feb 2021. GIC ladder
The REI.UN chart tells the story - not a pretty picture. I've been reading their press releases. the CEO is retiring and being replaced, but that won't make the virus disappear! Last I read was that they were receiving more overdue rent payments (I thought I saw 90% recovery?). That said, I think I saw news that announced rent freezes for the next 8-12 months - which could also put a lid on returns from REIT's - at least those that invest in apartment buildings.
ZRE has been very good and reliable - so much so that I am considering moving $ from a GIC ladder and buying more in Feb 2021. GIC ladder
I agree with the horrible chart...Rio Can was flat lining long before Covid. Yet like beaten down pipeline stocks Rio Can value will be not the empty Reitman stores failing to pay rent, but the prime real estate locations they own. Will be a long road for them to redevelop . Price/book is 30% below long term average.
Man...I think I've talked my self into buying more.
Man...I think I've talked my self into buying more.
Definitely a quality fund with a great track record.
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Thought I'd take a look since it came up. I'll put on my technical analysis hat.
This multi-year chart does not actually look too bad to me. It was fine before COVID. And yes, it dropped sharply, but this was an external and unforeseeable shock. Since then, REI.UN has actually rallied back above its 200 day moving average.
The 55% drawdown is rather severe, worse than the broad stock market, but this was one of the unlucky sectors which was hit hard due to the nature of this particular disaster.
Not a great chart by any means, but it also doesn't have the multi-year pattern of declines which is typical of companies which are "toast".
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I've been a long term holder of REI.UN. Not the best investment I've owned but they have clearly up'd their game with shedding assets in secondary markets and starting the re-development of their prime locations into multi-use projects, e.g. condos/commercial. Huge parking lots which can be reclaimed into multi-family housing. It simply takes years to plan, re-zone and re-build, funding disproportionately more of it with retained earnings than strictly debt or yet another share offering. I think it will be a long term winner but it is a multi-year journey.
Clearly I will hold, simply because I firmly believe it is substantially under-valued at this point.
Clearly I will hold, simply because I firmly believe it is substantially under-valued at this point.
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Decided to jump in CTS.V
That's one of my dream cars. The 2016-2018 version.
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Haha! Unfortunately I didn't jump in that car, no.
This is a nice max timeline graph, but if I had put my money in something like ZRE in early June (after the general market rebound) when I invested in a bunch of REITs, I would be much poorer.
Went heavy on HR Reit (up 42% currently), REI I got in October (up ~20%), and I got into MRT.un recently which is up 25% in 2 weeks. Hot.un also went up 40% in a few weeks (my stop order ditched that yesterday down a few %)
My ZRE is up 19% since roughly early June (respectable, but worse than all of the banks I got in May as well...)
The above is just anecdotal, but I have found that index funds, reit etfs, etc, have had much lower gains since May or June's general rebound. Lost opportunities with the vaccine hype and rebound.
I have since reduced or eliminated some of the reit positions since I think they're mostly "caught up" and are not really things I would typically hold long-term.
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Disappointing but they are doing the right thing to re-direct more of their cash flow into multi-use re-developments. It will pay off in a year or so notwithstanding they may permanently lose some tenants like Cineplex. I see no reason to 'cut and run' if they can re-deploy capital effectively.
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When did this announcement happen? I see normal trading on REI.UN. Was it after the close?
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RioCan Real Estate Investment Trust Announces One-third Reduction in Distributions to Unitholders
TORONTO, Dec. 03, 2020 (GLOBE NEWSWIRE) - Today, RioCan Real Estate Investment Trust (“RioCan” or the “Trust”) (TSX: REI.UN) announced a reduction of RioCan’s monthly distribution to unitholders from $0.12 per unit to $0.08 per unit, or from $1.44 to $0.96 on an annualized basis. RioCan’s Board...
After close. Current comments are split. Some say it's bad management and that they should've done it months ago, not when the stock is rising. Some are angry to get a cut. Some think it's a good idea. Some people may switch to BPY, others may switch to HR, and others will hold.
Hard to tell what will happen. When HR cut their dividends back in May, the market actually went bullish. But we are now in December, the timing seems awkward to me.
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