In times of uncertainty in the Canadian macro environment, investors should consider accumulating income-yielding equities such as Real Estate Investment Trusts (REIT) that trade on the TSX.
SmallCapPower | May 13, 2016: Since the Great Recession, the Canadian housing and real estate market seems to have provided steady upside for investors. While the macro environment in Canada suggests slower economic growth, we believe investors should allocate some of their capital towards REITs. Specifically, income investors will search for relatively high dividend yields, with a positive and considerable funds from operations (FFO), which may be present in REITs on our list.
True North Commercial Real Estate Investment Trust (TSE:TNT.UN) – $5.81
Commercial REITs
True North Commercial Real Estate Investment Trust (the REIT) is an unincorporated, open-ended real estate investment trust trading on the TSX. The Company owns approximately 25 commercial properties located in Alberta, Ontario and New Brunswick. The properties consists of approximately 98% office and over 2% industrial space, representing an aggregate of approximately 1,444,100 square feet of gross leasable area. The Company is focused on growing its portfolio principally through acquisitions across Canada and such other jurisdictions where opportunities exist.
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Market Cap $100.8 Million
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Dividend Yield (LTM): 10.2%
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FFO ($, LTM): 0.50
Slate Office REIT (TSE:SOT.UN) – $7.91
Commercial REITs
Slate Office REIT (the REIT), formerly FAM Real Estate Investment Trust, is a Canada-based diversified commercial real estate investment trust focused on owning and acquiring office retail real estate located in Canada. The REIT’s portfolio consists of approximately 1.8 million square feet of gross leasable area, comprising of approximately 963, 000 square feet office.
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Market Cap: $237.8 Million
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Dividend Yield (LTM): 9.4%
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FFO ($, LTM): 0.70
BTB Real Estate Investment Trust (TSE:BTB.UN) – $4.65
Commercial REITs
BTB Real Estate Investment Trust (BTB) is a Canada-based open-ended real estate investment trust. The Company owns properties in eastern Canada. BTB owns and manages a portfolio of 73 commercial, industrial and office properties totaling approximately 5.1 million square feet The Company’s properties are predominantly situated in and around Montreal, Quebec City and Ottawa.
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Market Cap: $162.2 Million
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Dividend Yield (LTM): 9.1%
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FFO ($, LTM): 0.36
OneREIT (TSE:ONR.UN) – $3.36
Commercial REITs
OneREIT, formerly Retrocom Real Estate Investment Trust, is a Canada-based unincorporated open-end real estate investment trust (REIT). The Company owns, manages and operates shopping centers located throughout Canada. The Company owns a portfolio of approximately 59 properties, including 57 investment properties located in nine provinces and the Yukon Territory, one parcel of land for development located in New Brunswick, and an interest in 39 acre tract of land in Mississauga, Ontario.
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Market Cap: $257 Million
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Dividend Yield (LTM): 8.9%
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FFO ($, LTM): 0.33
Dream Global REIT (TSE:DRG.UN) – $9.07
Commercial REITs
Dream Global REIT is an open-ended real estate investment trust, which provides investors with the opportunity to invest in real estate exclusively outside of Canada. Its objectives are to manage its investments to provide cash flows through investments in commercial real estate located outside of Canada, building a diversified, growth-oriented portfolio of commercial properties, capitalizing on internal growth and seeking accretive acquisition opportunities in its target markets, growing the value of its assets and maximizing the long-term value of its units through the management of its assets and providing predictable and growing cash distributions per unit, on a tax-efficient basis. Its portfolio consisted of approximately 266 properties located in Germany, including seven properties held within a joint venture of which the Company retained a 50% ownership interest.
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Market Cap: $1.03 Billion
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Dividend Yield (LTM): 8.8%
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FFO ($, LTM): 0.56
