RioCan Real Estate Investment Trust T.REI.UN

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Sru.un earning shows why sru is better

[CANCDN]

hroark7 wrote:

CANCDN wrote: Am I taking a lot of risk? How is my risk any more than someone buying a triplex rental property in Toronto? or a small 5 suite strip plaza in Toronto? or buying a Popeyes franchise with an annual 10% return?

In fact, my risk is less because with the click of a button, Market Order, I can liquidate my entire position immedaitly. I also have professional management of my real estate investments.

If I were to buy a strip plaza in Toronto right now, I would have to pay ACTUAL market value, vs buying into a group of strip plazas that are discounted at 50% that also have access to cash much cheaper than I would, along with professional management.

If my investment is not at 25 by end of 2022, I will be making a HUGE push to get the board of trustees to liquidate the company. You only need a few institutional investors on board to get the ball rolling. Its our rights as unit holders to force this if we can get 50% support. Management would have no choice but to sell off all assest, pay off debts and distribute the proceeds which today, stand at 8.7 billion, though market value would be much a few billion higher due to development prospects. The IFRS valuation is based on the CAP rates, internal and external appraisals but they CANNOT value a property at its FUTURE value.

Your investment thesis makes sense. I think the only thing that makes it risky is using a callable loan called margin. If you were able to buy it with a non-callable loan (ie. HELOC) then I'd say yeah, very low risk. But the stock market being what it is, you never know how far a stock can drop in the short term.

that why I keep a 10% buffer. When it dropped below 14, I trimmed a little to keep me in the black. 

Your loan can also be called on a mortage for commerical realestate. You miss a couple payments, they will call in the loan. Its no different, Its managing a business and managing my investments is like a business. Never had a margin call yet and this puppy would need to gap down like 30% and still would likley be little to no losses as I have been collection 10% on a large position.

Buy a strip mall and then a 'safe injection' site open next door and see how quickly the value drops of your property. 

In my assessment, the risk here is mutliples less of bnuying and selling real estate on my own, and the FFO is likely much better.