Dream Industrial Real Estate Investment Trust T.DIR.UN

RE:Reply to Defiance

[Defiance2050]

CanSiamCyp wrote: Hey Defiance!

Several years ago, I did study all of the available Canadian MICs. Based on market valuation (i.e., trading at a discount to estimated mortgage portfolio value), I purchased 2 separate Timbercreek MICs which traded under TMC & MTG on 3/12/2015 (one was shorter duration and the other longer duration mortgages); Timbercreek merged these two entities into one MIC which trades under TF (merged during July 2016).

As of Friday's close, my holding of TF is +4.2% compared to my total purchase cost of the two subsequently-merged MICs, and is current yielding 8.9%.

So, for me, TF is essentially a low volatility and high yielding substitute for bonds/GICs in our portfolio.

The downside to MICs, of course, is that their cash flow is taxed in your hands as interest income - not dividend or the complex mix of RoC plus other components as for REITs. That is why I only own the one MIC ... cuz it is situated in my RRSP (and our portfolio is approx. 93% non-registered investments).

Cheers!

Makes sense about the taxation to try an minimize and with reits a fair amount of the distributions are ROC. thanks