Tuesday, November 13, 2012

Canadian REITs At A Glance

Since reviewing the basics of REITs last week, I received a lot of questions asking if I was ever going to review individual Canadian REITs. We here at the Loonie Bin aim to please our readers, so we uncovered some of the more popular REITs available on the TSX. If we listed all of them then this wouldn’t be a glance, it would be more like an awkward stare. As always, please do your own research before making any investment decision. Here they are in no particular order:

Rio Can REIT

  • Rio Can is Canada’s largest REIT focused on retail real estate.
  • Their portfolio is chock full of supermarkets and shopping centers across Canada and in the north eastern U.S and Texas.
  • Current Stock Price: $27.24
  •  Yearly Distribution: $1.38
  • Current Yield: 5.06%
  • Distribution Growth: Was solid up until the 2008/2009 financial crises.
I heard that Rio Can was managing the new Target stores in Canada. Will be interesting to see how that works out for the future share price.

Crombie REIT: CRR.UN

  • Largest landlord in Atlantic Canada but is expanding west with properties across 9 provinces
  • Focused on income generated retail and office properties
  • Current Stock Price: $15.09
  • Yearly Distribution: $0.89
  • Current Yield: 5.89%
  • Distribution Growth: Somewhat stagnant thanks to the 2008/2009 financial crises.
Crombie REIT is owned by the Empire Company (Sobeys).

Calloway REIT: CWT.UN

  • Manage properties across Canada.
  • Focused on retail and shopping centers.
  • Current Stock Price: $28.95
  • Yearly Distribution: $1.55
  • Current Yield: 5.35%
  • Distribution Growth: Stagnant since 2008/2009 (Hmm, I sense a pattern here).
Calloway REIT has Wal-mart properties in its portfolio

Dundee REIT: D.UN

  •  Own and operate properties in key urban centers across Canada
  • Focused on office space and industrial properties
  • Current Stock Price: $36.65
  • Yearly Distribution: $2.20
  • Current Yield: 6%
  • Distribution Growth: A flat line that extends across the last decade.
Dundee REIT pays a monthly distribution

Boardwalk REIT: BEI.UN

  • Canada’s largest public owner/operator of multi-family rental communities.
  • Focused on residential rental income properties.
  • Current Stock Price: $64.27
  • Yearly Distribution: $1.92
  • Current Yield: 2.98%
  • Distribution Growth: Solid up until 2008/2009 and started increasing again in 2012
Boardwalk REIT is everywhere in the rental scene. Hope you have good references!

Well that’s enough REITs for now. I will try and come up with a more diversified list for a part 2 in the near future. Until then I hope your dividends always increase!
Which REITs do you currently own?
 This article was written by The Loonie Bin. If you enjoyed this article, please consider subscribing to his feed.  

1 comment:

  1. A word of caution for US investors: Unlike "regular" Canadian stocks in which the 15% withholding tax on dividends does not apply to stocks which are held by foreign investors in IRA or 401K accounts, dividends paid by Canadian REIT's are subject to that withholding even if held in a tax-deferred account. Since there is no way to recover foreign taxes withheld when filing your federal income tax if those taxes occurred in a tax deferred account, 15% of your dividend is lost.

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