# Recommended REIT's



## Young&Ambitious (Aug 11, 2010)

Are there are any REIT's people can recommend? REF-UN.TO and REI-UN.TO are at their 52 week highs so I wouldn't be comfortable buying these at this point in time.


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## dubmac (Jan 9, 2011)

I purchased ZRE - a equally weighted ETF with several top performing REIT's - reasonable distribution paid monthly

http://www.etfs.bmo.com/bmo-etfs/holdings?fundId=80001#
yield is about 5%.


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## arc (May 19, 2012)

dubmac said:


> I purchased ZRE - a equally weighted ETF with several top performing REIT's - reasonable distribution paid monthly
> 
> http://www.etfs.bmo.com/bmo-etfs/holdings?fundId=80001#
> yield is about 5%.


They're paying 5% dividend annually but is the MER the 0.550% annual? Does this mean I would make only 4.5% annually net? Is it worthwhile buying now or should I wait?

thanks


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## bigbadbull (May 25, 2012)

I currently hold IIP.UN and KMP.UN

IIP.UN is currently undervalued relative to its NAV (~$5.50/share) but has been facing some resistance around the $4.40-4.50 mark.

KMP.UN also has some buyout chatter surrounding it. 

I'm just a beginner invester but I'd say reits right now are a case of buy high and sell higher. The interest rate environment for them right now is of great growth potential too, there is an analyst, Dennis Mitchell, who has provided some great returns for investors in the past, you should check his commentary out. Just google him or you can use stockchase.com to find his comments.


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## blin10 (Jun 27, 2011)

then you need to wait for market collapse and/or price houses to sink... 


Young&Ambitious said:


> Are there are any REIT's people can recommend? REF-UN.TO and REI-UN.TO are at their 52 week highs so I wouldn't be comfortable buying these at this point in time.


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## Young&Ambitious (Aug 11, 2010)

Certainly seems that way. To me the majority look like short term spec plays :/ Div yields are okay though, I'd just like value AND income


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## daddybigbucks (Jan 30, 2011)

blin10 said:


> then you need to wait for market collapse and/or price houses to sink...


i agree.
If you buy a loser, it might just be that. 
I would wait as well and buy a winner when it drops 20%.


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## londoncalling (Sep 17, 2011)

I bought REI and REF when I first started DIY over a year ago and they did me well. I am not sure if they are overvalued or not. People have been saying REITs are overpriced for quite some time. The one thing I've noticed is with REITs is that they can have significant price swings from time to time. One day you will check your ticker to see the whole sector take a massive hit. I've also had some bad luck with more speculative plays. I made some rookie mistakes by buying INN prior to Flaherty's tax changes on stapled units and EXE before changes were made to US regulations for health care funding. It was a learning experience for me. Since these positions were taken mainly for income and I plan to hold them long term, I have a paper loss and an opportunity cost loss. INN cut its distribution accordingly and I averaged down on this one in the $4 dollar range. I currently have a high allocation to REITs so I do not plan to add anymore postions. If there is a correction in this sector I will reconsider. Crash and burn live and learn...

Cheers


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## Spudd (Oct 11, 2011)

I have INN.UN and D.UN. I'm a bit underwater on D.UN but have made huge profits in INN.UN. The thing I love about INN.UN is the shares are so cheap, that my DRIP gets me quite a few new shares every month. 

D.UN is currently on TD's "action list" as their only REIT pick.


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## slacker (Mar 8, 2010)

REIT seem sensitive to interest rates nowadays. e.g. the more Euro's tank, the more risk there is on the market, the less likely they will raise interest rates. So my REIT have done a good job for my portfolio so far, in that it satisfied in my original aim of finding a non-correlating asset.


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## londoncalling (Sep 17, 2011)

INN.UN had a great day (up 7.24%) :encouragement:


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## arc (May 19, 2012)

are there any differences between owning a REIT vs. a blue chip dividend stock? Tax or fee differences?
thanks


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## londoncalling (Sep 17, 2011)

from the archives....


http://canadianmoneyforum.com/showthread.php/1663-Income-trust-distribution-vs-Dividend


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## MC25 (Mar 9, 2012)

AGNC- ~16% dividend yield, american stock but I parked it in a TFSA, will still get good return even after the withholding tax.


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## runeash (Dec 28, 2010)

Is it REIT that have withholding tax ie what about lets AAPL. if it is RRSP is it different 


MC25 said:


> AGNC- ~16% dividend yield, american stock but I parked it in a TFSA, will still get good return even after the withholding tax.


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## MC25 (Mar 9, 2012)

All US equities paying a dividend are subject to a withholding tax AFAIK. But dividends outside of a tax free account are eligible for the DTC. TFSA and (Im pretty sure) RRSP accounts do not receive the DTC.


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## bigbadbull (May 25, 2012)

Morguard just came out with a new reit, MRG.UN, It's a North American residential reit. I haven't looked into it yet but It's been recommended by Dennis Mitchell and has already jumped $1.5 from its IPO last month.


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## Young&Ambitious (Aug 11, 2010)

MC25 said:


> All US equities paying a dividend are subject to a withholding tax AFAIK. But dividends outside of a tax free account are eligible for the DTC. TFSA and (Im pretty sure) RRSP accounts do not receive the DTC.


There's a treaty between US & Canada that allows for no withholding tax on US dividends received by a Canadian in a registered retirement account.


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## kcowan (Jul 1, 2010)

MC25 said:


> All US equities paying a dividend are subject to a withholding tax AFAIK. But dividends outside of a tax free account are eligible for the DTC. TFSA and (Im pretty sure) RRSP accounts do not receive the DTC.


But dividends _from eligible Canadian corporations _outside of a tax free account are eligible for the DTC.


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## MC25 (Mar 9, 2012)

Thanks for those clarifications


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## zylon (Oct 27, 2010)

*The Dennis Mitchell effect*

Mr Mitchell (please call me Dennis) was on BNN market call today.
http://watch.bnn.ca/#clip724808

Two of his top picks moved mightily on his reco.
The third (BPO) is up, but not extraordinarily so.


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