The Canadian Small Cap REITs on our list are the highest yielding in their universe
SmallCapPower | June 8, 2017: Many investors rely on REITs for a secondary source of income, as they are attractive due to their relatively large earnings payouts. Furthermore, REITs can be an important part of any diversified portfolio. Today we have identified the five highest yielding Canadian small cap REITs.
True North Commercial REIT (TSX: TNT.UN) – $6.21
Commercial REITs
True North Commercial REIT is a Canada-based unincorporated, open-ended real estate investment trust. 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.
- Market Cap: $182,532,858
- Total Revenue (LTM): $41,351,000
- Debt to Equity: 151.2%
- Dividend Yield: 9.5%
Slate Office REIT (TSX: SOT.UN) – $8.08
Commercial REITs
Slate Office REIT, formerly FAM Real Estate Investment Trust, is a Canada-based open-ended investment trust focused on acquiring, owning and leasing a portfolio of diversified revenue-producing commercial real estate properties in Canada with an emphasis on office properties. The Trust has a portfolio that spans approximately four million square feet (sq.ft.) of gross leasable area (GLA) and consists of over 30 properties located across Canada.
- Market Cap: $458,718,888
- Total Revenue (LTM): $122,190,000
- Debt to Equity: 175.0%
- Dividend Yield: 9.3%
Artis Real Estate Investment Trust (TSX: AX.UN) – $13.10
Commercial REITs
Artis Real Estate Investment Trust (Artis) is an unincorporated closed-end real estate investment trust (REIT). The Company’s objective is to provide stable, reliable and tax efficient monthly cash distributions, as well as long-term appreciation in the value of Artis’ units. Its segments include Western Canada, which comprises British Columbia and Alberta; Central Canada, which comprises Saskatchewan and Manitoba, and Eastern Canada, which comprises Ontario. The Company’s properties are diversified across industrial, retail, and office asset classes, and geographically across western Canada, Ontario, and in select markets in the United States. Its REIT portfolio includes over 250 commercial properties totaling approximately 26.2 million square feet of gross leasable area.
- Market Cap: $1,972,576,895
- Total Revenue (LTM): $549,151,000
- Debt to Equity: 104.2%
- Dividend Yield: 8.2%
Inovalis Real Estate Investment Trust (TSX: INO.UN) – $10.11
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 primarily located 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: $218,279,500
- Total Revenue (LTM): $31,120,000
- Debt to Equity: 99.4%
- Dividend Yield: 8.2%
Dream Industrial Real Estate Investment Trust (TSX: DIR.UN) – $8.68
Commercial REITs
Dream Industrial Real Estate Investment Trust is an open-ended investment trust. The Trust’s objective is managing its business to provide growing cash flow and stable and sustainable returns, through adapting its strategy and tactics to changes in the real estate industry and the economy; building and maintaining a diversified, growth-oriented portfolio of light industrial properties in Canadian markets based on an established platform; providing predictable and sustainable cash distributions to unitholders while prudently managing its capital structure over time, and maintaining a REIT that satisfies the REIT exception under the specified investment flow-through (SIFT) legislation in order to provide certainty to unitholders with respect to taxation of distributions. The Trust owns over 210 light industrial income-producing properties totaling approximately 16 million square feet of gross leasable area (GLA).
- Market Cap: $523,394,399
- Total Revenue (LTM): $174,689,000
- Debt to Equity: 146.9%
- Dividend Yield: 8.1%
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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