Here are a couple of Canadian REITs investments to consider adding to your portfolio
Canadian REITs offer many of the advantages that a landlord gets–most importantly, a monthly distribution for your investment–but without any of the hassles associated with actually owning and managing the property. Even better, REITs typically comprise of dozens, if not hundreds, of properties scattered across vast areas, which diversifies your investment even further.
Here are a couple of REIT investments to consider adding to your portfolio.
Killam Apartment REIT (TSE:KMP.UN) has a portfolio that is primarily focused on multi-family residential homes that are primarily in Atlantic Canada, but with some exposure to Alberta and Ontario. Killam proudly boasts its commitment to tenant satisfaction as a key point in keeping growth strong and vacancies low.
Killam pays a monthly distribution of $0.05, which, given the current stock price, amounts to a yield of 5.07%. This is a great distribution rate, but what makes it even better is the fact that the payout rate for this stock is low enough that it allows ample room for investment growth and the ability to pay out a handsome distribution.
Dream Office Real Estate Investment Trst (TSE.D.UN) is another great option. Dream focuses on primarily commercial properties around Canada with a sprawling 21.5 million square feet in the company’s portfolio. While the company currently trades below $18 per share, Dream values the company much higher–over $23.64, specifically.
That figure is based on the value of the assets the company has, not necessarily based on speculation. Even better, that $23.64 takes into consideration a massive decrease in value attributed to the portion of the company’s portfolio based in Alberta. If you factor in the value of those Albertan properties, the value shoots up past $30. Again, keep in mind the share price right now is below $18.
Dream is actively working to boost value by selling non-core products and paying down debt. Assuming that the Albertan properties recover as the economy slowly does, Dream should emerge much healthier with far less debt while still paying a great distribution.
Dream’s current monthly distribution is pegged at $0.12 per share, which, at the current stock price, provides a very healthy 8.49% yield.
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