REITs Are In Trouble - Page 2
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Thread: REITs Are In Trouble

  1. #11
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    REITs in trouble? The index is down about 2.5% from last month.

    What are the headlines going to look like in a minor correction, -10%?


  2. #12
    Senior Member olivaw's Avatar
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    Quote Originally Posted by new dog View Post
    Canada housing bubble, oil, higher interest rates and the recent Home Capital problems are causing REITs to drop. They have rolled over and could go far lower. However they could be an opportunity going forward as pension funds are hungry for alternative investments such as REITs.

    https://www.bloomberg.com/news/artic...property-reits
    Interesting read.

    I hold a modest portion of my portfolio in XRE for the dividend. There is nothing in the article which gives me pause. I certainly don't plan to panic and sell based on this one Bloomberg article.
    If you have something to say - then say.

  3. #13
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    Olivaw just like the general stock market we could be in for some pain but I agree with you why drop the dividend and investment unless you are sure there will be a bloodbath. Going forward it could be a place to add to though if the correction continues. This thread was started as a watch over this sector which is correcting at the moment and does have some headwinds against it as the article suggests.

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  5. #14
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    Quote Originally Posted by GalacticPineapple View Post
    Speaking of REITs--I don't buy the REIT ETFs because the fees are too high. Instead I buy them individually focusing on high, sustainable yields. I wouldn't mind trimming my collection by a name or two but still want to remain diversified. Thoughts? I currently have these in equal-ish slices:

    REI.UN
    HR.UN
    AX.UN
    D.UN
    BEI.UN
    MRT.UN
    +1 I also prefer to debundle any REIT ETF and own the assets directly.

    Top ones for me are REI.UN, HR.UN, D.UN, CAR.UN and SRU.UN.

    REITs will be around and thrive and return 4-6% for the foreseeable future.

    What sector does not have any headwinds? I would like to know!
    Last edited by My Own Advisor; 2017-05-19 at 06:50 AM.
    Hidden Content - Working on a $1 million portfolio and $30k per year from it.

  6. #15
    Senior Member tygrus's Avatar
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    Couple ways to look at REITs. Ones that hold rentals could be beneficiaries of a boom and a bust. People cant get a home, have to rent, then after a bust people have to rent or have cashed out and now rent.

    I am more concerned about the REITs holding lots of mall properties because it looks like it will just be amazon, walmart and handful of big box stores - (Costco/CTire/Home Depot) that we will be buying directly from. So much moving online now.

    A good REIT should have all asset classes - rentals, mall, industrial/commercial and be in every city across the country.

  7. #16
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    I get the worry about retail REITs and mall properties but I think there will always be small niche (and need) for businesses outside of box stores. I could be wrong of course.
    Hidden Content - Working on a $1 million portfolio and $30k per year from it.

  8. #17
    Senior Member m3s's Avatar
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    Quote Originally Posted by My Own Advisor View Post
    I get the worry about retail REITs and mall properties but I think there will always be small niche (and need) for businesses outside of box stores. I could be wrong of course.
    At least as long as the older generations is around. Malls are being converted into service based business but I doubt they will be able to sustain the high retail rent per square foot as before. I want a REIT for the online warehouses
    amat victoria curam

  9. #18
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    Quote Originally Posted by olivaw View Post
    ... There is nothing in the article which gives me pause. I certainly don't plan to panic and sell based on this one Bloomberg article.
    Not enough detail to separate those who made a bet on REITs going down who are trying to get their message out so that their view becomes a self-fulfilling, profitable prophecy.

    It doesn't hurt that most of the REITs I own are mentioned as buyout targets.


    Cheers

  10. #19
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    Quote Originally Posted by tygrus View Post
    ... A good REIT should have all asset classes - rentals, mall, industrial/commercial and be in every city across the country.
    Any examples come to mind?

    Most I have looked at typically want to stick to what they know.


    Cheers

  11. #20
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    Top retailers of REI.UN = CTC, Shoppers, Loblaws, Walmart.... These are not all going go out of business at the same time, if ever.

    They are also starting to cater to urban density.

    Personally, I am very happy that REITs are not generally in favour right now because when they are, they will be worth much, much more.

    HR.UN = diversified REIT.
    REF.UN = diversified REIT.

    Hidden Content - Working on a $1 million portfolio and $30k per year from it.

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