BMO Equal Weight REITs Index (ZRE.TO)

Thinks rates are going to be in a choppy, sideways trading range. This should remove a headwind for REITs, which have been big underperformers. His firm's REIT analyst is bullish on the space. Javed likes the space too. No one's interested in REITs or talking about them.

Ultimately, thinks we're heading into an era where inflation is going to be more persistent. REITs actually do pretty well in terms of protecting your portfolio in terms of inflation. He's cautious on bonds longer term, so REITs are an area to put $$ to work for dividend income.

Likes the setup here. Seeing a lot of US and Canadian REITs turn up. Timely, and should continue to work into 2027.

CGR is a global REIT play. ZRE is an equal-weight REIT play. VRE is market-cap weighted.

There isn't a right way, one's not better than another. Looking back in history, in Canada the equal weight has been better than market-cap weighted. That's as a result of some of the smaller REITs doing better than some of the larger ones. Domestic REITs have better tax treatment than global ones. So it depends on whether you're investing in a Canadian taxable account or not. There are a lot of great global REIT dividend plays, but you have to consider the foreign withholding tax.

Any one of these is a great vehicle, but which one will depend on an individual investor's need for exposure and tax situation.

The REIT sector is sensitive to the economy and rates. It has not performed so well, with a five-year return of 1.56%. Rates moving lower in Canada should add support, but our economy may be a bit iffy for a period of time. We would consider ZRE OK for general real estate exposure, but not hugely attractive. 
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Rates coming down further to help stimulate development activities and housing market activity would likely be key. The recent news of Canada slowing immigration over the next few years could be another headwind to rental growth. Overall, it is mainly rates and general improved economic conditions to help the real estate market improve. This will help portfolios appreciate in value, allow REITs to execute on pipeline opportunities, and grow payouts, but there is still work to be done here. 
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We've had a decent run in REITs, so he'd be selling and not buying. Yes, lower interest rates will help REITs. He feels the market is expecting too many rate cuts from the central banks. He predicts a hard landing in the economy eventually which won't help REITs.

Great option for investors. Get exposure to smaller REIT's as well. Lowering interest rates also good. Good for long term investors. 

Up about 11% last 3 months. Basket of 22 REITs. Underperformed TSX since March 2020, but has started to move with most other dividend stocks. He's starting to warm up to areas of higher distributions like REITs. Yield's about 5%. 

Prefers US-focused ones, because of the relative strength of the US economy. Likes logistics, storage, seniors homes, US retail. 

Broad REIT that has exposure to apartment and office assets.
Good diversification.
Would prefer narrower exposure.
Would have to wait 6-12 for REITS to fall before buying.

Down 11.4% over the last 12 months. Underperformed the TSX since early days of the pandemic. Interest rates moving higher is not conducive for REITs to perform well. How healthy is they real estate market in Canada? Macro environment not favourable, especially in Canada. Still uncertainty ahead. Yield is 4.9%.