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Old 08-30-2012, 09:14 AM #1
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Best Canadian Investments - Real Estate Investment Trusts (REITs)

Hi Everyone,

Some of you know by now I'm a Canadian living southside of the border, but about 2/3 of my total investments remain in Canada.

I've always subscribed by the belief that if something can't explain how it makes money that I do not want to invest in it. Immediately prior to the market crashed I put about 95% of my total investments in about 5 REIT companies that are publicly traded on the Toronto Stock Exchange (TSX) or Vancouver Stock Exchange (VN).

Real Estate Investment Trusts are companies that manage huge pools of money to purchase commercial or residential real-estate and rent or lease them out. They are required to pay out 95% of their net income in monthly dividends. This maintains their trust status in Canada which is favourable for tax purposes.

To simplify, imagine I and five people gave you $100,000 and you bought an apartment building, but you had to pay us 95% of the rental income every month. The value on the buildings would slowly depreciate over time, and you would have to use the remaining 5% monthly on upkeep and admin fees.

I have a return on investment of about 8 1/2% year on year for the past 5 years. Some of the REITs, such as BTB.UN have increased by about 30% in the past two years alone, not including the monthly dividend.
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Old 09-15-2012, 02:37 AM #2
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GESI will hit .50 by next summer. If not I will never visit PBN again
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Old 10-03-2012, 12:24 AM #3
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Old 10-03-2012, 12:25 AM #4
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Quote:
Originally Posted by trickedoutkid7 View Post
GESI will hit .50 by next summer. If not I will never visit PBN again
you got more info on this?
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Old 10-08-2012, 10:18 PM #5
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Quote:
Originally Posted by PillsburyDoughboy View Post
you got more info on this?
tone7ate9@gmail.com if you want all the DD I have done. These are just quick link to some DD others have done:

http://investorshub.advfn.com/boards...?board_id=4361


HOW TO BUILD A 50 MILLION DOLLAR COMPANY
http://investorshub.advfn.com/boards...ge_id=77362095

Just doing some math, but with an OS of 173M and a 50M asset being given to the company along with an equity deal off of what could possibly be a 125M project, lets play some numbers to see what things would look like for shareholders.

So, 125M minus 50M = 75M

$75M into the OS of 173M is $0.433 per share

Now lets throw in some revenue/profit speculation.

Say they're selling it at $0.11 per kWh and at 20 tons per day of railroad ties would put it around $12M per year.

Say worst case scenario of the equity deal is 50/50 profit sharing, thus giving GESI $6M in profit each year from one small facility.

$75M + $6M = $81M

$81M into the OS of 173 = $0.468

This is without factoring in price to earnings ratio, and again, this is just off of a base model facility without expansion processing 20 tons per day of railroad ties.

Conservative figures look good. If GESI got better terms than 50/50 on the equity deals, that number goes up.

Again, this is also without price to earnings (PE) ratios factored in, which would make that figure even higher, and this is also off of just 1 year of business.

BTW, it should about $0.433 PPS without any revenue based on assets alone.

These are conservative figures based off the OS. You could do the same math based off the float and get an even higher conservative figure upwards of $0.70+ PPS.
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Old 07-25-2013, 02:27 AM #6
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Alberta has the highest incomes in Canada as well as the lowest taxes making it the most affordable province to live in Canada. Albertan's also have the highest disposable incomes, therefore, they have extra income to spend on homes, automobiles and other big ticket items. Alberta's population is growing faster than any province in the country.
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Old 01-06-2014, 12:26 AM #7
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95% of your investments into 5 companies within the same industry? That defies all diversification portfolio theories.

Yes, REITs can have great dividends and provide great returns through capital gains, but like any stock it's not guaranteed. I'm no broker by any means, but I'd advise against doing anything similar to the statement in bold. REITs in the US are having regulatory troubles nowadays with potential legislation. I should know, a REIT i've been holding has lost 44% of its face value since my buying into it. The dividends have certainly made that loss significantly less, but the principal remains.

Look into diversifying into different markets, statistically it'll help you maximize gains and minimize losses.
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