The Canadian REITs on our list have exhibited strong three-year revenue CAGR as well as revenue growth estimates
SmallCapPower | July 31, 2019: REITs are generally sound long-term investments, as they typically offer high dividend yields plus the potential for moderate, long-term capital appreciation. Because of the strong dividend income REITs provide, they are an important investment both for retirement savers and risk-adverse investors. REITs are able to fuel their dividends from the stable stream of contractual rents paid by the tenants of their properties. However, today we will be focusing more on the capital appreciation side of REITs, looking at some of the fastest-growing Canadian REITs by examining three-year revenue CAGR and revenue growth estimates (this year/last year).
*Share prices as at close July 29, 2019, data obtained from S&P Capital IQ
Brookfield Property Partners L.P. (TSX:BPY.UN) – $25.38
Real Estate Investment Trusts
Brookfield Property and its subsidiary Brookfield Property REIT Inc. focus on owning and operating commercial real estate with about $85 billion in total assets under management. The Company has a diversified portfolio of offices, retail assets, as well as interest in multifamily, triple net lease, logistics, hospitality, self-storage, student housing and manufactured housing assets. In Brookfield’s Core Office Portfolio segment around the world it has 143 premier properties with a 93% occupancy rate and 8.4-year average lease term. The Company’s Core Retail Portfolio segment represents 8% of the high-quality retail space in the U.S. with 121M sq. ft and a 95.3% occupancy rate. On May 6, 2019, the Company released its Q1/19 financial results, which showed net income of US$713 Million. Visit the Company’s corporate website for more information.
- Market Cap: $24,360 Million
- 3-year Revenue CAGR: 8.3%
- Revenue Growth Estimate (This Yr/Last Yr): 12.6%
- YTD Return: 19.6%
Choice Properties Real Estate Investment (TSX:CHP.UN) – $13.90
Real Estate Investment Trusts
Choice Properties owns, manages and develops a portfolio of 756 properties that total 68M sq. ft of gross leasable area. Its portfolio can be broken down into 602 retail properties, 115 industrial properties, 15 office complexes, 4 multi-family residential buildings and 20 development properties. The Company works with retail, industrial, office and residential assets. Additionally, Choice Properties has a strategic alliance with its principal tenant, Loblaw Companies Limited. In its Q2/19 financial results released on July 17, 2019, the Company reported an occupancy rate of 97.7% and generated $324 million in revenue. Visit the Company’s corporate website for more information.
- Market Cap: $4,303.6 Million
- 3-year Revenue CAGR: 35.6%
- Revenue Growth Estimate (This Yr/Last Yr): 60.1%
- YTD Return: 20.7%
Summit Industrial Income REIT (TSX:SMU.UN) – $13.18
Real Estate Investment Trusts
Summit Industrial focuses on operating in the light industrial sector of the Canadian real estate industry. For reference, light industrial properties are typically one-story properties that are located in or close to major cities. Examples of the type of tenants that lease its properties are warehousing and storage, light assembly and shipping, call centres and technical support, professional services and various other similar uses. The Company has 108 industrial properties with 13.6 million sq. ft of gross leasable area and an occupancy rate of 99.4%. Visit the Company’s corporate website for more information.
- Market Cap: $1,561.7 Million
- 3-year Revenue CAGR: 34.4%
- Revenue Growth Estimate (This Yr/Last Yr): 61.7%
- YTD Return: 37.9%
Dream Global Real Estate Investment Trust (TSX:DRG.UN) – $14.26
Real Estate Investment Trusts
Dream Global REIT owns and operates a diversified portfolio of office and industrial properties located in key markets in Western Europe with a primary focus on Germany and the Netherlands. Currently, the Company has a gross asset value of $5.6 billion. The Company’s assets are 94% industrial space and 6% office space. In Q1/19, the Company sold its development site at Offenbach for three times its book value, at 35.5 Million Euros. Additionally, the Company acquired a light industrial property in Kassel, Germany for 18.3 Million Euros. Visit the Company’s corporate website for more information.
- Market Cap: $2,765.9 Million
- Revenue 3-year CAGR: 21.1%
- Revenue Growth Estimate (This Yr/Last Yr):13.9%
- YTD Return: 19.8%
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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