I am currently looking at adding GRT.UN.

Doing that depends a lot on your individual portfolio and strategy.

Say for example you want 5% exposure to the REIT sector. If you hold 2.5% positions in each of Smartcentre and PRO REIT, then yes it would make sense to sell a bit to reallocate to Granite, or else you'd be overweight.

However, if you're looking to increase the real estate portion of your portfolio, just adding Granite and reducing those taxable events isn't a bad idea.

You do have industrial exposure via PRO REIT. However, it is a small cap company with nowhere near the space or diversity that Granite has. For example, Granite sits at around 58M in gross leaseable space. PRO Reit only has around 6M.

Hi Rick,

It really all depends on the context of your portfolio. Do you have any capital losses to offset the gains? Will adding GRT put you over your REIT allocation requirement? GRT is an industrial REIT whereas the other two are mainly retail and in PRV's case, a diversified REIT with exposure to Office, Retail and INdustrial. So it's not inconceivable to add GRT without having to sell off one of your others since they operate in different industries. Assuming you have the funds and it doesn't put you over your targeted real estate allotment.

As you can see, lots of factors to consider when selling one position for the next. One thing worth noting is that both GRT and SRU are likely to be less volatile than PRV given their size in relation to PRV (which is a small cap). That said, PRV is trading at a bigger discount to historical averages and to NAV. IF you had to sell, it's a tough call and a toss up between SRU and PRV. It depends on if you want more stability (then sell a portion on PRV may be the way to go) or want to unload the one that is closer to full valued - which in this case, would be SRU.

Mat