The Canadian REITs we’ve discovered have had an average dividend increase of 4.3% over the past four quarters and have seen their unit price increase on average 24.2% year-to-date
SmallCapPower | November 12, 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 for both retirement savers and risk-adverse investors. REITs can fuel their dividends from the stable stream of contractual rents paid by the tenants of their properties. Today we have identified four Canadian REITs that have provided investors with increased dividend payments (last quarter/same quarter last year) and superior share-price appreciation year-to-date.
*Share price data as at November 8, 2019, data obtained from S&P Capital IQ
Canadian Apartment Properties Real Estate Investment Trust (TSX:CAR.UN) – $54.16
Real Estate Investment Trusts
Canadian Apartment Properties Real Estate Investment Trust (CAPREIT) is one of Canada’s largest residential landlords. CAPREIT is a growth-oriented investment trust owning interests in approximately 63,478 suites and sites across Canada, the Netherlands and Ireland. It owns, directly in Canada and indirectly in Netherlands through its investment in European Residential Real Estate Investment Trust (ERES), a total of 59,844 residential units, comprising 48,167 residential suites and 72 manufactured home communities comprising 11,677 sites located in and near urban centers.
- Market Cap: $8,666.7M
- 90-Day Return: +5.7%
- YTD-Return: +22.3%
- 90-Day Average Trading Volume: 348,720
- Q2/19 Dividend Per Share: $0.35
- Q2/18 Dividend Per Share: $0.33
- Dividend Increase: +6.1%
Granite Real Estate Investment Trust (TSX:GRT.UN) – $65.91
Commercial REITs
Granite Real Estate Investment Trust is a Canada-based REIT engaged in the acquisition, development, ownership, and management of industrial, warehouse, and logistics properties in North America and Europe. As of July, Granite owns over 80 rental income properties, representing ~34M square feet of leasable area. On November 5, Granite Real Estate Investment Trust announced its results for Q3/19. These results featured total revenue of $68.8M, a 2% increase from the previous quarter. The Company also posted a net income of $114.5M, an increase of 16% from the previous quarter.
- Market Cap: $3,562.6M
- 90-Day Return: +5.5%
- YTD-Return: +23.9%
- 90-Day Average Trading Volume: 147,920
- Q3/19 Dividend Per Share: $0.70
- Q3/18 Dividend Per Share: $0.68
- Dividend Increase: +2.9%
Allied Properties Real Estate Investment Trust (TSX:AP.UN) – $53.22
Commercial REITs
Allied Properties Real Estate Investment Trust is an owner, manager, and developer of distinctive urban workspaces in major cities in Canada. The Company also focuses on network-dense urban data centres in Toronto that form Canada’s hub for global connectivity. On August 6, Allied Properties Real Estate Investment Trust announced that it has launched an offering of a minimum of $225M aggregate principal amount of series D senior unsecured debentures. On Oct 30, the Company announced results for its Q3/19 ending on September 30, 2019. These results featured total revenue of $143.0M, an increase of 21% from the previous quarter. The Company also posted net income of $121.2M, an increase of 22% from the previous quarter.
- Market Cap: $6,188.0M
- 90-Day Return: +4.7%
- YTD-Return: +20.1%
- 90-Day Average Trading Volume: 183,450
- Q2/19 Dividend Per Share: $0.40
- Q2/18 Dividend Per Share: $0.39
- Dividend Increase: +2.6%
CT Real Estate Investment Trust (TSX:CRT.UN) – $15.04
Commercial REITs
CT REIT owns a Canada-wide portfolio of assets leased primarily to Canadian Tire Corporation (TSX:CTC.A). The Company’s portfolio owns ~300 retail properties containing over 24.6 million sq. ft. of leasable area. The portfolio consists of approximately 300 retail properties, four distribution centers, a mixed-use commercial property and three development properties. The properties are in all 10 Canadian provinces and in two territories.
- Market Cap: $3,418.0M
- 90-Day Return: +2.3%
- YTD-Return: +30.4%
- 90-Day Average Trading Volume: 223,470
- Q3/19 Dividend Per Share: $0.19
- Q3/18 Dividend Per Share: $0.18
- Dividend Increase: +5.6%
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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