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Thread: Reits

  1. #11
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    What REIT would you buy now?

    Thoughts?


  2. #12
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  3. #13
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    I'd buy kmp, wait for the EU to crash this summer, and then sell the kmp and buy drg.

    If drg doesn't become volatile this summer, I'd just hold the kmp and be pleased to do so.

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  5. #14
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    Same one I always buy whenever the cash builds up in my TFSA.

    SRU.un
    "That's what I do, I drink and I know things" - Tyrion Lannister

  6. #15
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    CAR.UN and REF.UN. Nobody can afford to buy in urban cities anymore!

    to Moderators - can we merge?
    Last edited by My Own Advisor; 2017-03-24 at 01:47 PM. Reason: Request to merge....
    Hidden Content - Working on a $1 million portfolio and $30k per year from it.

  7. #16
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    Agree. Please merge. Freaking annoying to have virtually identical new threads born on a monthly, or bi-monthly basis.

  8. #17
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    I think I'm finally going to change course... I have been holding ZRE for a while now, but can't get over the 0.6% MER for only 19 holdings. I've looked closely at VRE and XRE as well and can get more than 50% of what is in these ETFs by holding REI.UN, HR.UN, CAR.UN, SRU.UN and REF.UN.

    From a quick look it seems like I'd still be getting pretty good diversification in the various REIT classes; Residential, Office, Retail.
    I see a number of people doing this as well. How did others come up with their basket of REITs to avoid paying the costly MER on REIT ETFs? Any thoughts on if the 5 suggested REITs above concentrate too much on one class?

  9. #18
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    Hello,

    I had a similar thread elsewhere and started with the same concerns - I didn't want to pay 0.60% MER for 19 equally balanced REITs so decided to roll my own. This is my list and some of the reasons why I chose each of them. Feel free to comment.

    REI.UN - largest, retail + office, 5.35% yield, 0.27 beta, AFFO = 91.55%, Occupancy = 95.60%, Debt = 40.00%
    CAR.UN - large, residential, good grown but low yield, -0.18 beta (great!), above metrics are 75.00% 98.70% 44.31%
    AX.UN - medium size, diversified, beat up lately due to Alberta but good growth potential, 8.0% yield, metrics: 88.50% 92.00% 51.00%
    AAR.UN - medium size, industrial, focused on ecommerce distribution and logistics FedEx is 25% of client base, 5% yield, metrics: 86.60% 95.60% 42.30%
    NWH.UN - small, medical buildings and hospitals in 5 countries, good diversification, 7.34% yield, metrics: 93.00% 95.60% 51.50%
    SOT.UN - very small, office, great sustainable yield of 9.23% but probably not much growth due to this, metrics: 87.60% 86.40% 59.10%

    Equal weight them all 1/6 yeah. Average yield comes to about 6.5%. Used http://portfoliovisualizer.com/ to compare inner correlations and tried to keep them small. Also wanted to keep the basket with as low correlation to the TSX as possible.

    Currently hold 12% of total portfolio in those but 2 of them I haven't purchased yet.

    That's all I have. Hope it's useful.

    Cheers,
    JC

  10. #19
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    Im in CAR, KMP, NWH, and VRE in my RRSP, in the same vein as JC above - on modest returns, long term 0.6 drag does pile up as to the hit you take over time.

    Then RSI as a commodity I don't see dying off soon. and FSC as a real estate management and the services management buys , largely.

    Wife has FCR as her RE play in her RRSP


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