Dream Industrial Real Estate Investment Trust T.DIR.UN

couple thoughts on Cdn REITs

[SargeX]

With DIR taking such a huge smack down, I thought I'd have a look back at my wife & my past experiences with REITs. 

We got more heavily into them in 2012 just before I retired for the excellent income. I wasn't sure at that point if we were going to be fine in terms of our money lasting. As it turns out, this definitely hasn't been an issue as we have gone from barely having enough dividend income to cover expenses to now havng 3x as much as we need,

Anyway, in the 2012-2019 timeframe, we had 6-10 REITs. As time went along, we reduced that number to 2 (DIR, NWH) earlier this year. This was due to a combo of getting tired of the behaviour of a few/divy cuts (D,AX,HR,REI), take-overs (AAR, NVU, DRG, BPY)., and yield getting too low (GRT - which was bought with cash from AAR take-over).

Getting rid of these REITs generated $255k of profit.

For DIR & NWH, we're down on capital value but still up a small amount with the divs added back in. We've held DIR since 2013 and NWH since 2017 and the average annual total return for each is ~1%. 

My conclusion on REITs is that they are generally not worth investing in unless you really need the income or you get lucky with take-overs or timely sells.

Ciao
  Sarge

[SargeX]

One other really interesting tidbit that just dawned on me - of the $255k profit, $205.9k is from AAR take-over ($47.6k), NVU take-over ($71.4), and teh very timely GRT sell ($86.9k). Holy moly that makes REITs generally even less appealing!!

[DeanEdmonton]

Completely agree Sarge. I have little left in the REIT area. Have done well with physical real estate since 2008, actually really well, REITS have done basically nothing let alone coming close to being as good. For those that need dividend income, something like ZWU provides much higher dividends and the same zero growth profile on the Share price.

[SargeX]

Hey Dean It's really interesting that the investment learning never ends. Our strategy evolved over time into a dividend income/growth with 5 sectors - banks, utilities, midstream, telcos, and REITs. I am now ready to drop the REIT sector and focus on the blue chip dividend growers in the other 4 sectors. As mentioned, REITs have been really good to us but that was more lucky timing than

[CanSiamCyp]

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[SargeX]

Hey CSC Definitely long time, no hear. Good to hear all is going so well for you. All is top-shelf here as well. Congrats once again on doing so well on the investing front. That is sure going to be one BIG estate tax bill. I sure hate to see so much hard earned money going to wasteful governments. I've certainly changed my view on REITs going forward.We've done quite well with them in

[Defiance2050]

It is a good strategy to diversify like you have over various sectors and companies in the same sector. Having a good job, not spending / saving and investing works wonders over time.  Personally I find it to be a great opportunity to add into REITs as the majority of the publicly traded sector has fixed debt. CPP, Ontario teachers and other private options have cost of capital that is

[maypeters]

well done CSC. Hope all is well Sarge. Best wishes to both.  I have been looking at Skyline for a long time and the paperwork is a bit much for me. You can look at their returns over the past 1 year (private market NAV) vs the returns for a public company (market establishes the stock price - I doubt based on real NAV in private market).  Same as other times this phase shall pass also

[SargeX]

Hey May Long time, no hear. I hope all is well with you as well and that your investments are doing well. I'm also hoping DIR gets taken over. It will create a tiny problem for us with what to do with the extra cash but I'm sure I could figure out something. As mentioned, at this stage, we probably will never buy any additional REIT units of anything and would just be down to holding NWH

[maypeters]

All is well. Investmenets are okay. Investments are okay. Divvies come in no matter what. Am adding to the Canadian Banks as before along with health care (HHL -  Harvest ETFs). Need to figure out what to do with the cash next year assuming the Summit Industrial buyout goes through (I have almost zero doubts it will based on the buyers). Holding close to 7000 shares of SMU.UN.  . . this

[CanSiamCyp]

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[maypeters]

Thank you CSC. Congratulations from Trudeau and our esteemeed (?) Finance Minster on the sucesss you have had and for the capital gains taxes current and in the future lol :-) True. Cannot forget as DIR is almost 40% of Dream Office market Cap. I would expect Cooper to gobble back Dream office at some point of time.  DIR is a massive money maker for DRM due to the fee structure. I have the

[CanSiamCyp]

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[SargeX]

Blackstone previously did a take-over of DRG.UN and I would imagine it's a similar scenario. (I'm hoping so anyway :-)

[SargeX]

Hey May Good stuff on your 7000 SMU shares. Odd that SMU is trading a full dollar below the offer price. I'm with you on hoping for a DIR take-over. Not too sure how the GIC/SMU deal mght affect that. Take care    Don

[CanSiamCyp]

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[Red_Deer]

Hey CanSiam__Just read your very detailed and interesting Post__The One Thing that  JUMPED OUT for me was HOW LITTLE taxable unrealized capital gains you currently have running on your spreadsheets. I am assuming that your 600K gains are the Actual Taxable amounts reported on your  annual Tax Return in Schedule 3 ? If so, then even though both Your Total Portfolio Value and Annualized

[leo101]

looks like the old vulcan has entered his mating cycle again and is trying to attract a female with promises of wealth.  the rich and bountiful plumage has long since fallen from his old head so the mention of wealth is his best chance of snaring a nubile young mate.