Comments on: To REIT, or not to REIT http://www.canadiancapitalist.com/to-reit-or-not-to-reit/ Helping you invest and prosper Sat, 11 Feb 2012 19:27:54 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Canadian real estate investment calculator | Money Talks... http://www.canadiancapitalist.com/to-reit-or-not-to-reit/#comment-213654 Canadian real estate investment calculator | Money Talks... Sat, 20 Mar 2010 15:32:43 +0000 http://www.canadiancapitalist.com/?p=1065#comment-213654 [...] Should Canadians own Real-Estate Income Trusts (REITs … [...] [...] Should Canadians own Real-Estate Income Trusts (REITs … [...]

]]> By: Thicken My Wallet » Blog Archive » How much will they cut my income trust distribution by? http://www.canadiancapitalist.com/to-reit-or-not-to-reit/#comment-150422 Thicken My Wallet » Blog Archive » How much will they cut my income trust distribution by? Mon, 25 Aug 2008 09:04:23 +0000 http://www.canadiancapitalist.com/?p=1065#comment-150422 [...] in the meantime or you can convert to other vehicles which distribute cash. As mentioned, real esate investment trusts are generally not subject to the new tax regime and have been suggested by some as a good [...] [...] in the meantime or you can convert to other vehicles which distribute cash. As mentioned, real esate investment trusts are generally not subject to the new tax regime and have been suggested by some as a good [...]

]]> By: No Full Time Blogging Just Yet Said Boss Sunday Links | Personal Finance Blog by Money Ning http://www.canadiancapitalist.com/to-reit-or-not-to-reit/#comment-147649 No Full Time Blogging Just Yet Said Boss Sunday Links | Personal Finance Blog by Money Ning Sun, 10 Aug 2008 15:30:54 +0000 http://www.canadiancapitalist.com/?p=1065#comment-147649 [...] Capitalist takes a look at REITs, a possible alternative as others pointed out to my decision to buying an investment [...] [...] Capitalist takes a look at REITs, a possible alternative as others pointed out to my decision to buying an investment [...]

]]> By: Canadian Capitalist http://www.canadiancapitalist.com/to-reit-or-not-to-reit/#comment-147480 Canadian Capitalist Sat, 09 Aug 2008 18:11:03 +0000 http://www.canadiancapitalist.com/?p=1065#comment-147480 DGI: What's an asset class? David Swensen defines it as a "combination of securities that collectively provide a reasonably well-defined contribution to an investor's portfolio". REITs can't be grouped with equities because they "contribute diversification to a portfolio with lower opportunity costs than fixed-income investments". REITs are quite different from equities in the sense that: (1) their returns are not correlated (2) Most of the returns is in the form of current income (3) Their returns are expected to be lower than equities and higher than fixed-income (4) The volatility of returns are less than equities and more than fixed income (at least, according to Swensen). DGI: What’s an asset class? David Swensen defines it as a “combination of securities that collectively provide a reasonably well-defined contribution to an investor’s portfolio”. REITs can’t be grouped with equities because they “contribute diversification to a portfolio with lower opportunity costs than fixed-income investments”.

REITs are quite different from equities in the sense that: (1) their returns are not correlated (2) Most of the returns is in the form of current income (3) Their returns are expected to be lower than equities and higher than fixed-income (4) The volatility of returns are less than equities and more than fixed income (at least, according to Swensen).

]]> By: The Financial Blogger | Financial Ramblings http://www.canadiancapitalist.com/to-reit-or-not-to-reit/#comment-147381 The Financial Blogger | Financial Ramblings Sat, 09 Aug 2008 11:32:03 +0000 http://www.canadiancapitalist.com/?p=1065#comment-147381 [...] Capitalist is wondering if we should add REIT or not to our portfolio. He brings different point of view from well known investors in the [...] [...] Capitalist is wondering if we should add REIT or not to our portfolio. He brings different point of view from well known investors in the [...]

]]> By: squawkfox » Waiting for your eBook? Link Love Oh My! http://www.canadiancapitalist.com/to-reit-or-not-to-reit/#comment-147315 squawkfox » Waiting for your eBook? Link Love Oh My! Fri, 08 Aug 2008 19:10:48 +0000 http://www.canadiancapitalist.com/?p=1065#comment-147315 [...] Canadian Capitalist ponders Real Estate Investment Trusts in To REIT, or not to REIT. [...] [...] Canadian Capitalist ponders Real Estate Investment Trusts in To REIT, or not to REIT. [...]

]]> By: Dividend Growth Investor http://www.canadiancapitalist.com/to-reit-or-not-to-reit/#comment-147284 Dividend Growth Investor Fri, 08 Aug 2008 17:59:34 +0000 http://www.canadiancapitalist.com/?p=1065#comment-147284 I totally agree with Phil S that REIT's are a great way to generate dividend income because they offer a nice yield as well as the opportunity to increase their payment to shareholders. But at the end of the day aren't REIT's a type of stock asset, not a completely different asset class. In other words if you treat REIT's as a separate asset class ( although they are stocks), then financial stocks, utility stocks, telecom stocks and all the stocks in gazillion other sectors should be asset classes. I totally agree with Phil S that REIT’s are a great way to generate dividend income because they offer a nice yield as well as the opportunity to increase their payment to shareholders.
But at the end of the day aren’t REIT’s a type of stock asset, not a completely different asset class. In other words if you treat REIT’s as a separate asset class ( although they are stocks), then financial stocks, utility stocks, telecom stocks and all the stocks in gazillion other sectors should be asset classes.

]]> By: A Lap Of The Blogs : WhereDoesAllMyMoneyGo.com http://www.canadiancapitalist.com/to-reit-or-not-to-reit/#comment-147161 A Lap Of The Blogs : WhereDoesAllMyMoneyGo.com Fri, 08 Aug 2008 01:45:42 +0000 http://www.canadiancapitalist.com/?p=1065#comment-147161 [...] The Canadian Capitalist gives a great primer on REITs (Real Estate Investment Trusts). [...] [...] The Canadian Capitalist gives a great primer on REITs (Real Estate Investment Trusts). [...]

]]> By: Tom B. http://www.canadiancapitalist.com/to-reit-or-not-to-reit/#comment-146846 Tom B. Wed, 06 Aug 2008 04:31:45 +0000 http://www.canadiancapitalist.com/?p=1065#comment-146846 I recently bought H&R REIT and it is doing quite well. Capital gains plus a 8% yield sounds pretty good to me. Plus I think commercial real estate is much safer than residential. I recently bought H&R REIT and it is doing quite well. Capital gains plus a 8% yield sounds pretty good to me. Plus I think commercial real estate is much safer than residential.

]]> By: Canadian Capitalist http://www.canadiancapitalist.com/to-reit-or-not-to-reit/#comment-146804 Canadian Capitalist Wed, 06 Aug 2008 02:48:57 +0000 http://www.canadiancapitalist.com/?p=1065#comment-146804 Moneymonk: REITs don't have a long history but data from 1978 to 2003 quoted in Unconventional Success shows that REITs returned 12% compared to 13.5 for the S&P 500 and 8.7% for intermediate Treasury bonds. I don't know where you are getting the "do not have a good rate of return" comment from. Phil: Looks like you are taking Swensen's recommendation to heart! NN: I agree with you that long-term investors should be most concerned about inflation. Bonds are not very attractive holdings as their expected real returns is quite low. But I think a little bit of short-term bonds (20% in my portfolio) serve as a hedge against financial distress or unexpected deflation. Volatility doesn't faze some people, it terrifies others. The benefits of stocks accrue only if an investor has the fortitude to withstand periods of terrifying losses. Bonds could provide ballast to get through such periods. Whether investors want to give up a little return for these benefits is a personal choice. Moneymonk: REITs don’t have a long history but data from 1978 to 2003 quoted in Unconventional Success shows that REITs returned 12% compared to 13.5 for the S&P 500 and 8.7% for intermediate Treasury bonds. I don’t know where you are getting the “do not have a good rate of return” comment from.

Phil: Looks like you are taking Swensen’s recommendation to heart!

NN: I agree with you that long-term investors should be most concerned about inflation. Bonds are not very attractive holdings as their expected real returns is quite low. But I think a little bit of short-term bonds (20% in my portfolio) serve as a hedge against financial distress or unexpected deflation. Volatility doesn’t faze some people, it terrifies others. The benefits of stocks accrue only if an investor has the fortitude to withstand periods of terrifying losses. Bonds could provide ballast to get through such periods. Whether investors want to give up a little return for these benefits is a personal choice.

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