H&R Real Estate Investment Trust T.HR.UN

INTEREST RATES

[SNAKEYBOY]

REITs tumbled on average 20% since Feb 28 when the BOC paused.  The average yield on a REIT has increased 0.50-1% depending on how much it fell in 2 months.  So if REITS are going to crater from another BOC 0.25 hike why did they crater so much with a PAUSE?

[ScroogeMcDuck1]

It was the us bank implosion that set the fuse, IMO

[Frankie10]

It's a multi variable equation... snakey just needs a simple answer so he can point and complain about it... you are spot on, the us banking collapse and how the mainstream media linked regional collapses and vulnerabilities to commercial real estate specifically, obviously resulted in significant downward pressure. All else being equal, if I ran a multi million dollar ad campaign to engine

[ScroogeMcDuck1]

What I gather is that any office exposure is being marked down 50% value and stated nav is not trusted.  All reits with office are bundled together and treated the same until they prove their mettle.  

[pjn0987654321]

From a Globe article A year into the fastest campaign to hike interest rates in decades, the commercial real estate sector is deadlocked. In one corner, the world’s most sophisticated private real estate investors, including Canadian pension plans, say scores of properties they own are worth hundreds of millions of dollars each and have held most of their value. In the other, investors are

[Frankie10]

Great article - thanks for sharing... if I had to bottom line it: "MSCI, a financial market research firm, tracks the difference between publicly-listed and private, or unlisted, real estate in Canada and the U.S. Its latest figures show the gap in public and private values is 37 per cent in Canada, and 30 per cent in the U.S." I have taken solace in the fact that I could invest in the

[Reece1986b]

Thank you for sharing that article. I agree with Frankie. Many REITs are managing to sell one or a very small number of office assets at full IFRS NAV and then claiming that this validates their NAV on all their office properties. I don't think that ever really made sense however I think it particularly makes no sense in cases such as the Dream Office sale of 720 Bay Street where the property

[Calbucin]

Hi Reece, where do you see an 11% distribution? for hr.un, I see half of that? best regards

[Frankie10]

Total return over 2 years (annual yield x2)... and I felt this way last time I was buying like mad in the low 10's... only took a quarter to realize a very fat gain. Not saying this wil happen again... but I am saying the fundamentals on a company specific basis have only improved. Great company at a great price = amazing investment.

[Capharnaum]

I think that real estate will hold value because the cost of building new has just gone so much higher. The extra office supply can be repurposed at cheaper cost than building from scratch, especially if it's well located, as there's hardly any land piece to build out something new. Long term, rents will be driven by new build costs, and those aren't coming down anytime soon