# Cominar REIT (CUF.UN)



## Loon (Apr 12, 2012)

Is anyone following CUF.UN? I bought some along with REI.UN to build up a Canadian REIT position. It's down over 20% in 1.5 years and I'm looking at adding a bit more to get back to my target allocation. Is there something wrong with this REIT or is it just the downswing just due to sector volatility?


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## gibor365 (Apr 1, 2011)

Nothing is wrong with CUF.UN , it has good fundamentals and never cut dividend


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## andrewf (Mar 1, 2010)

A lot of REITs are down 20% from peak. I wouldn't say it's because there is anything particularly wrong with Cominar, just a yield curve story.


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## Synergy (Mar 18, 2013)

CUF.UN got hit a little harder then some of the other REIT's or the index in general. D.UN also got hit pretty hard over the last year (excess supply concerns - office buildings). I hold both. Good yield, quality management, etc. CUF.UN - I recall some analysts mentioning something about a "Quebec" focus being one of the reason why it may have declined more than some of the others.


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## My Own Advisor (Sep 24, 2012)

It does have a Quebec focus....

"Cominar Real Estate Investment Trust is one of the largest diversified real estate investment trusts in Canada and the largest commercial property owner and manager in the province of Quebec. Our real estate portfolio includes 493 office, retail, and industrial properties in the provinces of Quebec and Ontario, in the Atlantic Provinces and in Western Canada and represents more than $5.9 billion in assets."

http://www.cominar.com/ENGLISH/accueil_EN.php

Decent history of distributions but froze them in recent years since financial crisis. As interest rates climb, maybe they will climb in 5 years????, distributions should go up.


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## AltaRed (Jun 8, 2009)

IIRC, one of the major brokerages (Scotia Macleod?) used to publish a REIT report on a fairly regular (annual?) basis where one could compare the various REITs, especially with respect to AFFO, Cap rate, D/E ratio, payout ratio, etc. Not that all can be compared directly due to the different sectors various REITs are in, but I recall it was a very useful report for general comparative reasons. IIRC2, I also thought Cominar had a relatively high D/E ratio relative to other REITs and that makes it more sensitive to interest rate increases.


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## Synergy (Mar 18, 2013)

Here's a past report from CIBC (October)
www.investorvillage.com/uploads/51958/files/64577843.pdf


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## AltaRed (Jun 8, 2009)

Synergy said:


> Here's a past report from CIBC (October)
> www.investorvillage.com/uploads/51958/files/64577843.pdf


Thanks for that. I had not been able to google it for some reason.


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## kaleb0 (Apr 26, 2011)

Cominar makes up my largest REIT holding right before AX.UN, I've also added to it as it's dropped in price. In my opinion it was over-sold when compared to a lot of the other REITs on the market. They have an amazing assortment of assets, and they've taken a lot of steps to make their balance sheet more sustainable over the long term. I actually pass through a couple of their buildings almost daily on my way to work, they are always bustling with shoppers, but always in great shape, well maintained, and in prime locations (like attached directly to a subway or commuter train station).

I'm one of the few insane people who moved TO Quebec from outside the province, and I don't even speak a word of French, I just love paying half of what I make in taxes [sarcasm]. I actually ended up buying CUF.UN AFTER seeing their buildings and noticing their logo in a few places around the building. This prompted me to look them up and research them, and before you know it I started a position.


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## gibor365 (Apr 1, 2011)

kaleb0 said:


> Cominar makes up my largest REIT holding right before AX.UN, I've also added to it as it's dropped in price. .


Mine too  the biggest holding now is CUF, than AX, than HR and then REI


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## the-royal-mail (Dec 11, 2009)

We had a discussion about REITs recently when someone noticed that NWH.UN seemed to be trading at all time lows. The comments did not favour buying such REITs but I did buy some in my practice account when it was worth 10.12. Now it's up to 10.45. With interest rates for personal mortgages being artifically low it tends to encourage the foolhardy to continue buying houses they cannot afford.


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## HaroldCrump (Jun 10, 2009)

the-royal-mail said:


> With interest rates for personal mortgages being artifically low it tends to encourage the foolhardy to continue buying houses they cannot afford.


TRM, residential mortgages have no bearing whatsoever with rates that REITs pay on their mortgages.
NWH portfolio includes hospitals, doctor's offices, clinics, labs, etc.
It has got no relational whatsoever with the over-priced housing market.

NWH is probably a good buy right now, but not for the reasons you think.


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## PatInTheHat (May 7, 2012)

I sold my CUF along with several other REITs a little while back. This is a decent one to be in if you want REIT exposure and likely a decent buying opportunity across the entire sector however I think you should be prepared that you will likely just be collecting a dividend for a while.

As a side note along with HaroldCrump NWH is the only CAD REIT I still own.


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## donald (Apr 18, 2011)

Notice today Cuf suspended drips(no drips just distributions)
Does this mean anything?
Also does anyone have a opinion about Cuf(even quebec economy for that matter)


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## AltaRed (Jun 8, 2009)

https://www.cominar.com/ENGLISH/Documents_PDF/Communiques_PDF/comm_20_01_16EN.pdf

Because they want to re-purchase units because they believe their units are too cheap. So why let unitholders further dilute unitholder equity (increase float) through buying units too cheaply?


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## donald (Apr 18, 2011)

That sounds like def a positive(thought so)
Do you have a vague opinion on any quebec centric?
I remember last time i ask you about something(cwb)I should of listened haha
thanks Alta


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## AltaRed (Jun 8, 2009)

I don't buy Quebec out of principle. Too much political interference (my bias).


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## donald (Apr 18, 2011)

Some could see that as a moat?Ie:nobody plays in their playground?
Just got this gut feeling Jt will make sure quebec is well looked after
seems like the eastern real estate like quebec looks better than the west?
This name is down a lot


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## AltaRed (Jun 8, 2009)

Yeppers, different strokes for different folks. I personally do not care. 

It is not that I have ignorant bias towards Quebec (my spouse is from Montreal and has family there). It is just I think it is an entirely f*cked up province that causes a headwind for business.


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## donald (Apr 18, 2011)

The north of 10% distribution(yield)Kinda makes one cautious(covered though so cuf says/shows)
Seems like reits sector does look cheap 'cheaper'
and eastern side looks better than west
Don't know to much about Cuf
Widely held and big but sort of not mentioned a lot
Are you bearish with commercial real estate in the east Alta?
just curious you take on that


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## Value (Jul 31, 2015)

From my point of view, Cominar is a very good reit... I work in real estate analysis and these guys have smart people and are well run... 

I've been looking at buying shares since last year, but think it's got nowhere to go but down for now... 

Lets face it, real estate assets are well overvalued and altough Poloz could lower rates, their is a lot of downside potentiel and limited upside for now... 

If the oil patch goes under, who knows what repercusions that could have nationally... 

I`m sitting and watching for now, if you think it's time to get into real estate, cominar is a solid pick from my standpoint... 

@ Alta, I think Cominar is pretty independant when it comes to making decisions... Perhaps Quebec is different than the rest of Canada and you might not trust the province for your investments, I understand and respect that, but I don't think that should be a concern for others.


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## donald (Apr 18, 2011)

Prob not a share price grower but if it just stays flat that is a pretty nice income in distributions it's giving you(no div growth is okay since it is paying good now)
Seems decent considering there isn't much to be excited about anywhere broadly
You agree with that yes Value?


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## Value (Jul 31, 2015)

Well Donald... I'm not sure about the growing opportunities... I know an appraiser from the reit that was doing trips to Alberta... But that was a while back... I figured he was looking to aquire from the region, but he told me he wanted to wait it out for now (that was in the spring of 2015)

... They might jump in eventually when prices and returns are interesting, but then again, they might not... I wouldn't know... They would be expanding their operations to new markets if they were to do so.

I personally don't trust the canadian real estate market as a whole and don't see it going up much... Then again I'm kind of a permanent bear on multiple sectors... Energy, Financial and real estate, so I wouln't want to be a buying in those industries right now. 

On the upside, you are paying less than 70% of book value on very tangible assets and the 10%+ dividend is safe unless a major catastrophe arises...

The decision is yours my friend... For myself, I am holding off for now and hope to buy when its even lower.


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## donald (Apr 18, 2011)

Thank-you Value
You make it easy to understand.
I am going to watch this closely 
I am very interested in this and it makes sense it can get cheaper

I really do like a liberal/jt government and what the mngt just did with suspending drips


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## donald (Apr 18, 2011)

Hanging acting nicely here in the bad weather(flat-+)
hmmm
I love watching down days and what something does against it's sector(where that sector stands against the other sectors)and than just broader market 
very simple guideposts 
still watching
Value if your still hanging around this thread-what do you think if the price action today?


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## donald (Apr 18, 2011)

Transcanada setting up for the future(energy east)in Quebec
Nice +
120 High level/high paying jobs(a part of the cartel)
I like it lol
a tick for case in buying
I also love quebec as a 'eventual' world class 'amsterdam' 
You know that is where the cool pot and coffee cafe's are going to explode.
Trudeau will even hang out in one


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## donald (Apr 18, 2011)

+Lowes(usa)
Think being in quebec looks gooood
Rona is a goner


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## humble_pie (Jun 7, 2009)

interesting turn to the thread, thanks donald & value!

i don't see how energy east can substantially benefit quebec, it's my understanding that the port of St John NB, where the energy east pipeline will terminate, will be the major beneficiary of new business. Tankers in & out of harbour, etc.

this is a bit off the topic of CUF.UN but the bitumen that is the oil sands product - the bitumen that is to flow through energy east - is very difficult to refine. There are not that many refineries in the world that can handle tar oil, which is why it has to be exported.

some of these refineries belong to Valero in texas, which is why Keystone made sense. Apparently the world's biggest & newest heavy oil refineries are in china. To the best of my knowledge, canada has no such refineries.

enbridge, though, is said to be diverting, or hoping to divert, some oil to existing refineries in Montreal East, so i have to improve my knowledge of what kind of oil that would be. My understanding is that the Trans Canada pipe is actually 3 separate pipes inside one exterior pipe? so possibly one of the 3 pipes is carrying the lighter crude, which the montreal refineries can handle.

back to CUF, it does merit attention. Thankx again, value, for your input.

there's another smaller montreal-&-environs REIT called BTB.UN. I used to own its shares in TFSA. At the time they did quite well. The big excitement came when CUF.UN (a one-family owned business based, i believe, in quebec city) was said to be wanting to acquire BTB.


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## donald (Apr 18, 2011)

I don't think quebec will be a majority winner of energy east(always the west wins) but i think it 'signals' that the liberals are with the oil "men' of this country
It is like saying hey guy we welcome you(not enemies)
It's got that good 'vibes' under the surface going
Agree with that Humble?
I know you know more about quebec than anyone around here


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## tkirk62 (Jul 1, 2015)

humble_pie said:


> there's another smaller montreal-&-environs REIT called BTB.UN. I used to own its shares in TFSA. At the time they did quite well. The big excitement came when CUF.UN (a one-family owned business based, i believe, in quebec city) was said to be wanting to acquire BTB.


I'm still loving BTB. Trades 80% of book value right now (along with almost every Canadian REIT), 10% yield, which I've been getting for years,and it is my diversification into the strange land of Quebec. It's just been quietly DRIPping in my TFSA for ~5 years after building a large position. One of my lowest maintenance holdings.


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## humble_pie (Jun 7, 2009)

^^

great history, félicitations, i'm happy for you.

as i recall BTB looks to own well-situated commercial buildings with strong core tenants in smaller municipalities outside montreal & also in the suburbs of montreal. They never buy big downtown office towers.

at least, that was the way they were.


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## donald (Apr 18, 2011)

So what makes BTB better?(or is it)
Looking at both with fresh eyes?
Small cap in quebec less risker is that the conclusion if one wants to make a 'play' in quebec?
By the way Humble i have always though Quebec was/is the nicest city in Canada
Very beautiful city and i love Habs fans-god love em


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## Value (Jul 31, 2015)

Hey Donald, 
I`m sorry, I don't really follow the stock movement daily for this one. I'm just seeing it as a long term opportunity when the timing is good, but so far, I still will have to wait. If you`re looking at it very short term, I afraid I'm not much help 

I don't have much to say about BTB, I'm not as familiar to that one as CUF.

Best of luck,


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## humble_pie (Jun 7, 2009)

donald i haven't owned BTB.UN for a few years & i don't follow it either.

back in the day, the concern was that the company had very high levels of debt. They may still do, you'd have to check.


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## tkirk62 (Jul 1, 2015)

They continue to have high debt. It is often what is mentioned when people discuss the company.

http://www.stockchase.com/company/view/2722/0/BTB-Real-Estate-Investment-Trust/BTB.UN-T


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## donald (Apr 18, 2011)

Quebec related-The Nordiques
Is it Possible Quebecor(the media company)still make a bid to get them back
Humble you live there right
a)is there a demand and would the city rally for a hockey team?(or content with just the habs)
It made a huge difference here in Winnipeg,sure it would do the same


B)I also read page 4 Reuters(real estate section)
Institution money buying R.E for rents(no mention about joe blow=bottom)
couple big names
This quebec story looks good
If one was to value each province i think Quebec has the lowest p/e i am not kidding lol
This country has hated on it for a long *** time-tide turning


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## LongShorts (Feb 18, 2016)

Bought into Cominar at $15.04. Currently sitting at $17.31 on the market. Plus the 9% dividend yield was attractive.

Anyone have thoughts on their current 60 days surge upwards? Price targets have it set at $17.43 currently, resistance is at $18.95.


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## Spudd (Oct 11, 2011)

All REITs are surging upwards right now, because it looks like the Fed is not going to raise rates for quite a while.


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## gibor365 (Apr 1, 2011)

I hold CUF for a long term and don't even check current prices (just sometimes check their AFFO payout) ... they never cut dividends and I hope they won't cut in future  . Just DRIPping dividends with discount and in last 2 years my dividend income increased by 18%


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## My Own Advisor (Sep 24, 2012)

Spudd said:


> All REITs are surging upwards right now, because it looks like the Fed is not going to raise rates for quite a while.


Low rates will be the norm the next 20 years! Let the good times roll!


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