# REIT allocation in your portfolio



## gibor365 (Apr 1, 2011)

Was curious what is REIT allocation in your total portfolio... Mine is 7% and I'm thinking to increase a bit


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## tygrus (Mar 13, 2012)

Mine is closer to 15% but I am drawn to yeild.


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## GoldStone (Mar 6, 2011)

0%


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## scorpion_ca (Nov 3, 2014)

ZRE 12% of my portfolio.


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## Moneytoo (Mar 26, 2014)

Mine was 7%, thinking of decreasing to 6 (currently 6.7) - not selling, just not buying more with new deposits.


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## gibor365 (Apr 1, 2011)

Moneytoo said:


> Mine was 7%, thinking of decreasing to 6 (currently 6.7) - not selling, just not buying more with new deposits.


Just did exact calculation and it's exactly 7% (include small position in US REIT, WIR.U and German REIT DGR.UN), planning to increase to 8%, 
Money2, why are you planning to decrease? I don't see Canada gonna increase rates any time soon, on the contrary imho they gonna decrease it ... big banks are doing stress test if interest will be negative...like in Japan


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## Spudd (Oct 11, 2011)

10% target, currently at 13%.


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## Moneytoo (Mar 26, 2014)

gibor said:


> Money2, why are you planning to decrease?


Want to increase ZCN (that contains most of the large REITs anyway$), think it has higher growth potential


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## Synergy (Mar 18, 2013)

1.5-2%


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## larry81 (Nov 22, 2010)

5%


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## tygrus (Mar 13, 2012)

I always had the view that real estate can always be re purposed somehow thus making it a safer investment even in a reit thus leading to my higher proportion. 

A shopping mall can be redesigned or a new anchor can be found. Part of an office tower could be changed to condos or even a hotel. Interiors can be upgraded to demand a higher rent. Parking lots can be subdivided for new tenants etc etc. Even during construction if things goes south your can redesign the space or even cut off a few floors like Calgary did back in the late 70s. In real life though I wonder how often this gets done or they just sit on what they have hoping for the market to improve.


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## JosephK (Nov 7, 2012)

5% target, currently very close at 5.2%.


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## Eder (Feb 16, 2011)

The thing is if you hold equities like the banks,McDonalds etc you already own a lot of real estate.


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## gibor365 (Apr 1, 2011)

Eder said:


> The thing is if you hold equities like the banks,McDonalds etc you already own a lot of real estate.


Just average REIT yields much more than average bank or MCD


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## 1980z28 (Mar 4, 2010)

4.4 % for


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## My Own Advisor (Sep 24, 2012)

REITs HAVE to pay out a portion of their distributions to shareholders. Love that structure


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## gibor365 (Apr 1, 2011)

I'm planning to add a bit to HR.UN, AX.UN and REI.UN


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## besmartrich (Jan 11, 2015)

Mine is at 20%. I love adding REITs in my and my wife's TFSA accounts due to their tax advantageous set up and their fairly stable performance. Also love the facts that REITs have been punished hard lately showing some sales lately. I will probably add more during the year by using my wife's TFSA room. Good luck everyone!


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## Tawcan (Aug 3, 2012)

About 12% in our porfolio.


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## Synergy (Mar 18, 2013)

gibor said:


> Just average REIT yields much more than average bank or MCD


True, but are we not more concerned with total return? Take a look at MCD vs REI over the last 10 years.


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## mf4361 (Apr 11, 2015)

About 7% in TFSA


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## TomB19 (Sep 24, 2015)

Synergy said:


> True, but are we not more concerned with total return? Take a look at MCD vs REI over the last 10 years.


Not always.

My REIT ratio is high; probably 30%. Enough distributions find their way into my accounts that I am in a position to buy every two to five weeks. Having some cash kicking around enables me to participate in fire sales and that has helped the performance of my portfolio considerably.


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## Koogie (Dec 15, 2014)

Actual REIT holdings and REIT ETF equals 2% of the portfolio. Have some more indirectly through broad market ETFs (VCN, VTI, etc..)
As a homeowner in Canada whose home equals 16% of his total net worth, I feel I am more than adequately exposed to real estate.


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## atrp2biz (Sep 22, 2010)

We only have two REITs--BPY.UN and D.UN. We allocated our entire RRSP and TFSA contributions for the year to D.UN a few weeks ago. We've had BPY.UN since the BPO days. They make up <2% of our portfolio.


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## gibor365 (Apr 1, 2011)

As my employment status has been changed , was curious what REIT allocation have semi-retired and retired guys?! I invested some cash into REIT this year, however mostly because of new money that came from Group RRSP , my allocation is still 7% .... Planning to increase to 8 - 8.5%.


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## 1980z28 (Mar 4, 2010)

I will soon be done with work

My largest is car.un and than csh.un than ruf.un and exe 

I have reached my dividend per month,,,amount,,,will start to sell some other holdings to bring down my dividend amount for each month


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## TomB19 (Sep 24, 2015)

30% here. No plan to sell anything but REITS had seemed like a good value for a few years. Now other investments seem better.


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## AltaRed (Jun 8, 2009)

gibor365 said:


> As my employment status has been changed , was curious what REIT allocation have semi-retired and retired guys?! I invested some cash into REIT this year, however mostly because of new money that came from Group RRSP , my allocation is still 7% .... Planning to increase to 8 - 8.5%.


There is not any material difference in 7, 8 or even 9% allocations. Why not use the KISS principle and stick with round numbers, such as 10%? REITs have been known to provide stable income flows over long periods of time, just what retirees need.


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## gibor365 (Apr 1, 2011)

> There is not any material difference


 depends on dollar value of the portfolio....  , fot me the difference between 7% and 10% is more than 20K


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## AltaRed (Jun 8, 2009)

I still maintain that 7 vs 8 vs 10 in immaterial. Indeed, I believe anything less than a 10% allocation in an asset class in a portfolio does not have a meaningful effect on a portfolio. I wouldn't change that thesis whether the portfolio is $200k or $2000k in size. Indeed, I provide advice to a $3 million portfolio and my advice for meaningful 10% increments stands. 7 vs 10% (i.e. delta of $90k) hardly moves the needle on that $3 million portfolio.


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## FI40 (Apr 6, 2015)

I'm 60% equities, 20% each of canada/international/US. So I'm in REITs according to their allocation within the broad equity indices I own.

I used to own them separately, but ultimately just figured that they're a sector like any other, and why should they be favored over anything else if I believe in the market cap weighted index philosophy for equities. So I sold them and made my portfolio simpler.


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## larry81 (Nov 22, 2010)

5% total


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## lonewolf :) (Sep 13, 2016)

0% REIT if was going to buy a REIT would consider private REIT
0% stocks
0% gold, silver
0% bonds
100% cash & GICs


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## mordko (Jan 23, 2016)

3 percent in real estate via stock ETFs.


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## zylon (Oct 27, 2010)

5% private reit

plus whatever might be in my balanced mutual funds (not much i guess).


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## EngPhysGuy (Jul 9, 2015)

I target 10% through ZRE (it has slightly higher MER but is more balanced in its holdings). In addition to this there is a few percent from my global market exposure.


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## Beaver101 (Nov 14, 2011)

exe.un + onr.un = 7%


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