realestate investment funds/trusts | General financial discussion | Discussion forum

Please consider registering
guest

sp_LogInOut Log In sp_Registration Register

Register | Lost password?
Advanced Search

— Forum Scope —




— Match —





— Forum Options —





Minimum search word length is 3 characters - maximum search word length is 84 characters

sp_Feed Topic RSS sp_TopicIcon
realestate investment funds/trusts
May 10, 2010
2:02 am
kilarney
Member
Members
Forum Posts: 146
Member Since:
November 8, 2009
sp_UserOfflineSmall Offline

does anyone have any opinions of experience with these property based funds? They advertize good returns with very low risk. Are there any hidden charges or catches to them? They say its like owning and renting a property out without the hassle. Is that true?

May 10, 2010
4:08 pm
andras
Guest
Guests

They are essentially like stocks, with attendant risks, but there are some high yielding ones. My favourite is Whiterock WRK.UN on the TSX. The yield is about 11%. Great Management. Here is Canaccords latest comment on them.

Whiterock REIT (WRK.UN : TSX : $15.01) - Buy - Target: C$16.50
Shant Poladian
Comment: Q1 a bit light but per-unit results back on the upswing; maintain BUY rating and $16.50 target price

Whiterock REIT reported Q1/10 diluted FFO/unit of $0.40 vs. $0.47 in Q1/09, which is below our $0.43 estimate but above consensus at $0.38. The sequential improvement from $0.37 in Q4/09 reflects the accretive impact of recent acquisitions. We are not surprised with the wide variance between our estimate, consensus and the actual reported results owing to the high volume of transactional activity (deleveraging and acquisitions) during Q1/10. Portfolio stats were soft in Q1, but should improve through the year. Same-store cash NOI declined by 1% in Q1/10 over Q1/09, mainly attributable to lower occupancy during the quarter. Q1/10 occupancy came in at 95.3%, sequentially down 90 bps from Q4/09, and down 180 bps from Q1/09. The sequential drop in occupancy is mainly a result of vacancies in Moncton, NB, and Nisku, AB. The Nisku vacancies have been fully re-leased subsequent to Q1/10 and will begin contributing to NOI in 2H/10 (along with the re-leasing at 655 Bay St and 193 Malpeque).
Risk profile continues to diminish as deleveraging is now visible and FFO/unit growth is on the upswing. Deleveraging drove D/GBV to 64% in Q1/10 from ~73% for most of 2009. Although leverage is still higher than peers', it approaches 61% if we treat the in-the-money converts as equity (series F is being converted into units at a rapid pace). Over time we'd like to see total leverage in the high 50s, which doesn't seem as far off as it did for most of Whiterock's public history. At quarter-end liquidity was strong at $50 million, leaving room for additional investments. We continue to like the steps the REIT has been taking with respect to the following factors: (i) deleveraging; (ii) high-quality acquisitions; (iii) a near-sustainable AFFO payout ratio. We believe management will be successful in growing the company into a high-quality mid-cap REIT in the foreseeable future. Our C$16.50 target price is based on a modest premium to our $15.25 pre-tax NAV estimate using a 7.50%
portfolio cap rate.

May 13, 2010
2:09 am
kilarney
Member
Members
Forum Posts: 146
Member Since:
November 8, 2009
sp_UserOfflineSmall Offline

some info suggests that it is not a good time to buy into a REIT since we may be seeing interest rates rise and these funds have gone thru a good return with historically low mortgage rates. Maybe wait a bit to see what happens?

May 4, 2022
10:12 am
AllanB
Member
Members
Forum Posts: 43
Member Since:
April 18, 2022
sp_UserOfflineSmall Offline

Sorry old thread.

Why are Reit stocks falling more than some other dividend payers what will happen if they lose their flow through tax exempt status won't they restructure to similar value but instead of paying as much income they'll become capital gain plays.

I'm all for cooling off real estate if that helps.

May 4, 2022
11:31 am
savemoresaveoften
Member
Members
Forum Posts: 1192
Member Since:
March 30, 2017
sp_UserOfflineSmall Offline

AllanB said
Sorry old thread.

Why are Reit stocks falling more than some other dividend payers what will happen if they lose their flow through tax exempt status won't they restructure to similar value but instead of paying as much income they'll become capital gain plays.

I'm all for cooling off real estate if that helps.  

Rising interest rate makes a REIT's dividend less attractive, and on top increase their funding cost, so a double whammy.

May 12, 2022
10:32 am
AllanB
Member
Members
Forum Posts: 43
Member Since:
April 18, 2022
sp_UserOfflineSmall Offline

Could the Reits go bust with higher rates or a legislative change in structure. How much can they withstand? Are they safe investments

May 12, 2022
5:56 pm
savemoresaveoften
Member
Members
Forum Posts: 1192
Member Since:
March 30, 2017
sp_UserOfflineSmall Offline

AllanB said
Could the Reits go bust with higher rates or a legislative change in structure. How much can they withstand? Are they safe investments  

There wont be a legislative change in structure, period.

May 15, 2022
7:10 pm
AllanB
Member
Members
Forum Posts: 43
Member Since:
April 18, 2022
sp_UserOfflineSmall Offline

savemoresaveoften said

There wont be a legislative change in structure, period.  

How do you know?

Please write your comments in the forum.