The TSX REITs on our list have big payouts while maintaining low levels of debt
SmallCapPower | May 10, 2017: The real estate market in Canada has been soaring the past couple of years, and if you expect the trend to continue these five REITs could go even higher. Even if you aren’t a real estate guru, owning a REIT is a good way to diversify any portfolio due to their stability and high yielding stream of income. The TSX REITs on our list all yield over 6%, which is nearly the same historic annual return of the S&P 500. What’s even better is that these companies have managed to provide such a high yield while keeping their debt under control as seen in their relatively low debt ratios.
Morguard Real Estate Investment Trust (TSX: MRT.UN) – $15.24
Commercial REITs
Morguard Real Estate Investment Trust (the Trust) is a Canada-based closed-end trust. The Trust’s objective is to accumulate a Canadian portfolio of real estate assets and then manage the portfolio to generate steady, dependable returns to unitholders. It owns a real estate portfolio of approximately 50 commercial properties consisting of approximately nine million square feet of gross leasable area located in the provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and Quebec. The retail portfolio includes two categories of properties: enclosed full-scale, regional shopping centers that are dominant in their respective markets, and neighborhood and community shopping centers that are anchored primarily by food retailers, discount department stores and banking institutions.
- Market Cap: $674.43 million
- Total Revenue (LTM): $213.96 million
- Debt to Equity (LTM): 91.8%
- YTD Price Change: 2.4%
- Yield: 6.4%
- Debt to Assets: 47.1%
NorthWest Healthcare Properties REIT (TSX: NWH.UN) – $10.76
Specialized REITs
NorthWest Healthcare Properties Real Estate Investment Trust is an open‐ended real estate investment trust (REIT). The Company’s objectives are to manage its investments to provide stable, sustainable and growing cash flows through investments in healthcare real estate across the globe; build a diversified, growth‐oriented global portfolio of healthcare properties based on an initial portfolio of investments in Australasia, Brazil, Germany and Canada; capitalize on internal growth and seek accretive healthcare real estate acquisition opportunities in its target international markets, with a focus on Australasia, Brazil, Germany and Canada; grow the value of its assets and maximize the long‐term value of its Trust Units through its management, and provide predictable and growing cash distributions per unit, on a tax‐efficient basis.
- Market Cap: $686.45 million
- Total Revenue (LTM): $211.11 million
- Debt to Equity (LTM): 268.5%
- YTD Price Change: 5.5%
- Yield: 7.4%
- Debt to Assets: 56.8%
Northview Apartment REIT (TSX: NVU.UN) – $22.59
Residential REITs
Northview Apartment Real Estate Investment Trust, formerly Northern Property Real Estate Investment Trust, is an unincorporated, open-ended real estate investment trust. The Company is a multi-family residential real estate investor and operator that provide a spectrum of rental accommodations with a portfolio of over 24,000 quality residential suites in over 60 markets across Canada. Its residential portfolio includes a multi-family segment, that includes apartments, town homes and single-family rental units, and an execusuites and hotel segment, where rental period ranges from a few days to several months.
- Market Cap: $824.26 million
- Total Revenue (LTM): $253.46 million
- Debt to Equity (LTM): 152.0%
- YTD Price Change: 12.6%
- Yield: 7.2%
- Debt to Assets: 55.0%
Agellan Commercial Real Investment Trust (TSX: ACR.UN) – $11.56
Commercial REITs
Agellan Commercial Real Estate Investment Trust is an unincorporated, open-ended real estate investment trust (REIT). The objectives of the Company are to provide investors with stable, predictable and growing cash distributions on a tax-efficient basis; enhance the value of its assets and maximize long-term unit holder value through active management, and expand the asset base and increase its adjusted funds from operations (AFFO) per unit, including through acquisitions. It invests in income producing properties in the United States and Canada in the industrial, office and retail asset classes. The Company’s portfolio contains approximately 4.7 million square feet of gross leasable area (GLA) in approximately 30 properties.
- Market Cap: $276.75 million
- Total Revenue (LTM): $88.6 million
- Debt to Equity (LTM): 133.7%
- YTD Price Change: 8.3%
- Yield: 6.7%
- Debt to Assets: 53.3%
Dream Industrial Real Estate Investment Trust (TSX: DIR.UN) – $8.80
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.
- Market Cap: $387.66 million
- Total Revenue (LTM): $131.54 million
- Debt to Equity (LTM): 146.9%
- YTD Price Change: 3.2%
- Yield: 8.0%
- Debt to Assets: 52.4%
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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