Investing

Why are REITs raising?

  • Last Updated:
  • May 15th, 2019 9:10 am
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[OP]
Jr. Member
Mar 8, 2014
124 posts
10 upvotes
Mississauga, ON

Why are REITs raising?

Today everything was going down but all REITs I was looking at (REI.UN, HR.UN, NWH.UN ...) went up. Strange. I am actually waiting for them to drop somewhat to buy in.
5 replies
Sr. Member
Jun 28, 2018
846 posts
584 upvotes
Toronto
JackReacher wrote: Today everything was going down but all REITs I was looking at (REI.UN, HR.UN, NWH.UN ...) went up. Strange. I am actually waiting for them to drop somewhat to buy in.
Yields have been going down with flight to safety in this time of uncertainty.

As well, with the way things are it is becoming even less likely we'll see a rate hike, maybe will see a rate cut somewhere down the line.

My SMU.UN has been back to hitting all time highs. AP.UN is getting close to all time high range as well.
The Distracted Investor

Dividends through quality companies 😃 Though I usually lose money with trades :facepalm:
[OP]
Jr. Member
Mar 8, 2014
124 posts
10 upvotes
Mississauga, ON
OK, let me ask this. What kind of situation will likely bring those stocks a bit down to more comfy levels to buy?
Deal Addict
User avatar
May 11, 2014
4395 posts
5120 upvotes
Iqaluit, NU
JackReacher wrote: OK, let me ask this. What kind of situation will likely bring those stocks a bit down to more comfy levels to buy?
REITs generally go down when interest rates go up. They are similar to bonds. This is because if government bond yields go up, why invest in other bonds if I can guarantee higher rates from safer plays?
You can look at REITs as bonds in general. Economic growth and higher inflation may suggest they may come down. But because they are often run as a business, that is not a guarantee. If you are looking at a them as a longer term hold, I wouldn't worry too much about timing them as it will be hard to predict exact times to go in. Rather take the time to analyze their business and the projection their business has. Buy accordingly. You can mitigate the risks REITs have with other equities to balance it out.

Of course, if you are looking at them as short term investments, you might need to be careful.
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[OP]
Jr. Member
Mar 8, 2014
124 posts
10 upvotes
Mississauga, ON
Thank you for explanation. Won't they go down also if a whole market is tanking? In last few days Dow Jones lost about 1000 points and TSX is following, not that drastically though. It looks like a market rally is over. US will likely reduce lending rates and Canada will follow
Deal Fanatic
User avatar
Sep 8, 2007
8938 posts
10112 upvotes
Way Out of GTA
If I was looking at picking up for example some XRE it would likely be $17.xx not high $18.xx’s.

It was coming off as the market was rallying to new highs but with this pullback the XRE has rallied back.

Personally I’d wait on this. Maybe later in the year. It remains rather overbought and has rallied in the expectations of lower rates.

I think there’s some areas of the market where some oversold deals are emerging....like commodities. Even the banks are down a couple bucks. Whereas thru April it felt like there was zero deals to be had, now it’s getting more interesting if you have cash to deploy.

Artis REIT has done well in the last week, since they appear to be positioning themselves for a sale. Huge stock buyback program underway and special committee formed.

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