Increase your exposure to Canada’s red-hot real estate market with the REITs on our list
SmallCapPower | April 21, 2017: Today we have identified some Real Estate Investment Trusts (REITs) with expected funds from operations (FFO) increases of more than 10%. REITs are a pool of money (trust) that is used to buy, develop, manage, and sell real estate assets. REITs generate income through renting, leasing, and selling of property and distributes it directly to unitholders via a cash distribution or payout—less maintenance costs of the properties. With increasing funds from operations, the REITs on our list are most likely to increase their payouts to investors.
Pure Multi-Family REIT LP (TSXV: RUF.UN) – $9.07
Residential REITs
Pure Multi-Family REIT LP (Pure Multi) is a Canada-based company, which invests in multi-family real estate properties in the United States. The Company offers investors exposure to the United States multifamily real estate assets. It offers investors the ability to participate in monthly distributions, with potential for capital appreciation, stemming from ownership of quality apartment assets located in core cities within the Southwestern and Southeastern portions of the United States, including states, such as Texas, Arizona, Georgia and Nevada (collectively, the Sunbelt).
- Market Cap: $442.0 million
- YTD Price Change: 8.3%
- Current Yield: 5.6%
- Expected Growth in FFO (per share, NTM/LTM): 17%
WPT Industrial Real Estate Investment Trust (TSX: WIR.U) – $12.85
Commercial REITs
WPT Industrial Real Estate Investment Trust (the REIT) is an open-ended real estate investment trust engaged in the business of acquiring and owning industrial investment properties located in the United States. Its objective is to provide Unitholders with an opportunity to invest in a portfolio of institutional-quality industrial properties in the United States markets, with a particular focus on distribution industrial real estate. The United States industrial real estate sector consists primarily of single-story properties located in or near major cities. The REIT’s portfolio is concentrated in the Midwestern and Southeastern regions of the United States.
- Market Cap: $600.4 million
- YTD Price Change: 8.3%
- Current Yield: 5.9%
- Expected Growth in FFO (per share, NTM/LTM): 14%
Inovalis Real Estate Investment Trust (TSX: INO.UN) – $9.59
Commercial REITs
Inovalis Real Estate Investment Trust (Inovalis REIT) is a Canada-based, open-ended real estate investment trust (REIT), formed for the purpose of acquiring and owning office properties located primarily in France and Germany and also in other European countries. It owns interest in over 11 properties, of which seven are owned by the REIT (Baldi, Courbevoie, Jeuneurs, Metropolitan, Sabliere and Vanves in France, Hanover in Germany) and four are held through partnerships with various global institutional funds (Arcueil in France, Bad Homburg, Cologne and Duisburg in Germany) comprising over 1,083,000 square feet of gross leasable area.
- Market Cap: $206.8 million
- YTD Price Change: 4.5%
- Current Yield: 8.6%
- Expected Growth in FFO (per share, NTM/LTM): 13%
Pure Industrial Real Estate Trust (TSX: AAR.UN) – $6.47
Commercial REITs
Pure Industrial Real Estate Trust (PIRET) is a Canada-based unincorporated, open-ended investment trust that owns and operates a portfolio of income-producing industrial properties. The Trust’s primary objectives are to generate stable and growing cash distributions from investments in income producing industrial properties in markets across Canada and distribution and logistics markets in the United States; to maximize the long-term value of the properties through active management, and to expand its asset base and increase its distributable income through an accretive acquisition program.
- Market Cap: $1,744.7 million
- YTD Price Change: 15.7%
- Current Yield: 4.8%
- Expected Growth in FFO (per share, NTM/LTM): 12%
Dream Global REIT (TSX: DRG.UN) – $9.89
Commercial REITs
Dream Global REIT is an open-ended real estate investment trust (REIT), which is an owner and operator of approximately 10 million square feet of office and mixed-use space in Germany and Austria. The Company allows investors to invest in commercial real estate outside of Canada. The Company’s portfolio consists of approximately 170 properties, including properties located in Germany and Austria.
- Market Cap: $1,362.4 million
- YTD Price Change: 4.7%
- Current Yield: 8.1%
- Expected Growth in FFO (per share, NTM/LTM): 11%
Disclosure: Neither the author nor any of the principals at Small Cap Power, or their family members, own shares in any of the companies mentioned above.
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