Great article! In regards to Dream Office and Allied, for the same price I think it's natural to invest in Dream Office over Allied. Downtown Toronto locations are worth way more than Montreal and the office market in Toronto is much better than in Montreal, especially around core which all access the TTC (metro stations). From what we seen the smaller buildings are more liquid and easily sold for good prices and Dream Office has another advantage over Allied, which has massively large buildings in Montreal which I believe would be very hard to sell for a good price. Allied also is using majorly fake cap rates in the 4s and Dream and others have already moved cap rates. I think it's a no brainer to add Dream Office over Allied in the s/t if bullish office.
Very few of these REITs have operated their current business as publicly held entities for 30 years. I'm fond of using 12/31/03 as a starting point for measuring long-term returns. It captures performance through several bull and bear markets. Online databases of regulatory filings improved after 2000 - older records are incomplete and sometimes only available on paper.
I understand but it is looking into Max diagram on Yahoo charts and dividend history. In example, Allied Properties has now the same price as in 2008 and dividend even was cut in the half in the meantime and never restored. That means that the company never benefited shareholders so if there is no clear catalyst in sight (that will rarely come from the management), from my limited experience, it is better to stay away from such stocks... That's what I have learned from mistakes.
Occasionally such positions will work, especially in the environment when interest rates goes down, so for one that knows how to swim in volatility it might be a "trading sardines" although.
Good article!
long $HR.UN
Great article! In regards to Dream Office and Allied, for the same price I think it's natural to invest in Dream Office over Allied. Downtown Toronto locations are worth way more than Montreal and the office market in Toronto is much better than in Montreal, especially around core which all access the TTC (metro stations). From what we seen the smaller buildings are more liquid and easily sold for good prices and Dream Office has another advantage over Allied, which has massively large buildings in Montreal which I believe would be very hard to sell for a good price. Allied also is using majorly fake cap rates in the 4s and Dream and others have already moved cap rates. I think it's a no brainer to add Dream Office over Allied in the s/t if bullish office.
Thanks for a nice article 👍
Looking forward to your article about Melcor.
Somewhat surprised that Melcor is in the market viewed like a reit & not gets any credit for its booming construction segment.
Thanks for this great update, keep the good work.
My advice would be to look more in past performance of the REIT (ideally past 30 years). Losers rarely became winners over the very long periods.
Very few of these REITs have operated their current business as publicly held entities for 30 years. I'm fond of using 12/31/03 as a starting point for measuring long-term returns. It captures performance through several bull and bear markets. Online databases of regulatory filings improved after 2000 - older records are incomplete and sometimes only available on paper.
I understand but it is looking into Max diagram on Yahoo charts and dividend history. In example, Allied Properties has now the same price as in 2008 and dividend even was cut in the half in the meantime and never restored. That means that the company never benefited shareholders so if there is no clear catalyst in sight (that will rarely come from the management), from my limited experience, it is better to stay away from such stocks... That's what I have learned from mistakes.
Occasionally such positions will work, especially in the environment when interest rates goes down, so for one that knows how to swim in volatility it might be a "trading sardines" although.
Great summary - thanks for sharing