Today we analyze the risk levels of four Canadian REITs that have exceptionally high current dividend yields
SmallCapPower | October 20, 2017: Today, we look at the dividend distributions during the year, as a percentage of Funds from Operations (FFO) of four Canadian REITs with the highest dividend yields. The FFO is used to measure cash generated by REITs as an operating performance benchmark. It is calculated by adding depreciation and amortization back to earnings and removing gains on sales of assets.
PRO Real Estate Investment Trust (TSXV:PRV.UN) – $2.21
Commercial REITs
Established in 2013, PRO Real Estate Investment Trust is a Canada-based trust that focuses on markets in Quebec, Atlantic Canada, and Ontario. The Company’s portfolio comprises 43 properties covering ~2.3 million square feet, all of which are rented for commercial operations.
- Market Cap: $120 Million
- Dividend Yield: 9.5%
- Dividend Paid/FFO: 86.25%
True North Commercial REIT (TSX:TNT.UN) – $6.31
Commercial REITs
Founded in 2012, True North Commercial Real Estate Investment Trust focuses on acquiring and renting Canadian commercial real estate properties. Currently, True North owns over 32 properties that comprise approximately 2.16 million square feet. Majority of the Trust’s assets are situated in Ontario and New Brunswick.
- Market Cap: $219 Million
- Dividend Yield: 9.4%
- Dividend Paid/FFO: 71.6%
Slate Office REIT (TSX:SOT.UN) – $8.18
Commercial REITs
Slate Office Real Estate Investment Trust focuses on acquiring and renting office properties across Canada’s major population centers. Currently, the Trust owns 38 office properties that comprise approximately 6.1 million square feet. Approximately half of its real estate assets are located in Ontario.
- Market Cap: $465 Million
- Dividend Yield: 9.2%
- Dividend Paid/FFO: 80.2%
BTB Real Estate Investment Trust (TSX:BTB.UN) – $4.65
Commercial REITs
BTB Real Estate Investment Trust focuses on acquiring and renting out commercial, office and industrial properties across eastern Canada. The majority of the Trust’s assets are situated in Ontario and Quebec. BTB owns a total of 70 properties that cover more than 5.2 million square feet.
- Market Cap: $199 Million
- Dividend Yield: 9.0%
- Dividend Paid/FFO: 82.37%
Disclosure: Neither the author nor any of the principals at SmallCapPower, or their family members, own units in any of the companies mentioned above.
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