Real estate refers broadly to the property, land, buildings, and air rights that are above land, and the underground rights below it. Three leading ETFs are the iShares S&P/TSX Capped REIT Index Fund, the BMO Equal Weight REITs Index ETF, and the Vanguard FTSE Canadian Capped REIT Index ETF. Everyone wants to own industrial properties that can benefit from the growth in E-commerce. Investors are being well compensated for this uncertainty. Now that we’ve gotten that primer out of the way, let’s take a closer look at 7 of the best Canadian REITs, the kinds of companies that should provide a combination of solid distributions and some impressive capital gains as well. The Chairman of SmartCentres, billionaire Mitch Goldhar, is actually the man who first brought Walmart to Canada, so SmartCentres and Walmart have a very close relationship. The information on Stocktrades.ca represents the views of the authors and should not be misconstrued as advice. REIT stands for real estate investment trust and is sometimes called \"real estate stock.\" Essentially, REITs are corporations that own and manage a portfolio of real estate properties and mortgages. Trading around $19.50 for a yield of 3.93%, XRE has a year-to-date (YTD) daily total return of 20.85%, and a three-year daily total return of 11.76%. Most countries' laws on REITs entitle a real estate company to … Management reinvests the excess cash flow in its developments as well as buying back its units when they are cheap. Net asset value is $21.80. H&R REIT (TSX: HR.UN) is one of Canada’s largest fully internalized real estate investment trusts with total assets of approximately $13.3 billion at September 30, 2020. In addition to the usual advantages, these funds are highly liquid, trading on the Toronto Stock Exchange (TSX), and they offer compelling yields, with distributions paid monthly. Three leading ETFs are the iShares S&P/TSX Capped REIT Index Fund, the BMO Equal … 10 Top Canadian Stocks You Need to Buy in 2021, PO Box 16018 Lower Mount Royal, Calgary, Alberta, T2T5H7, Canada, 5 Top Canadian Gold ETFS for 2021 and Beyond, Canadian Bond ETFS – Best Fixed Income ETFS in Canada, [Complete Guide] The Ultimate Guide To Buying Bonds Today. It has 256 developments planned or underway right now – plans to build offices, hotels, storage facilities, apartments, condos, and seniors’ living facilities on its land. These assets are currently spread across 18 REITs, with the top 10 accounting for 77.2% of the fund’s assets. Skyline Commercial Real Estate Investment Trust (REIT) is an income-producing opportunity to invest in a diversified portfolio of predominantly industrial properties. VRE follows the FTSE Canada All Cap Real Estate Capped 25% Index, which has holdings in a wide range of Canadian real estate firms. Since its inception in February 2012, VRE has accumulated AUM of $246.23 million. The ones that are higher are usually trying to pay down debt, something a REIT will usually do by selling non-core assets or issuing units. If its interest rate comes down 1%, it could boost FFO by almost 15%. Despite the attractive fundamentals of the portfolio, Dream Office is trading at just 72% of its net asset value and ~13x FFO. It used the proceeds from the sales of those assets to pay down debt, and going into 2020 it had debt-to-assets of just 23.7%. Request Profile Update; Download Data He focuses on companies with high quality assets that are trading with a margin of safety. With most of its properties in major cities, and with lots of development/growth potential, that is very cheap. Diversification is an investment strategy based on the premise that a portfolio with different asset types will perform better than one with few. The company locks tenants into long-term agreements of a decade or longer with rent escalators because the operators value stability. The payout ratio is under 50% of 2019's FFO. In this video, I discuss the dangers of investing in REITs and what you MUST know about REITs! It is important to seek out a qualified investment, tax or legal professional before making any decisions related to your own personal investments. That's a nice position to be in today, especially as other REITs struggle with unaffordable payouts. Whether you're looking for a retail, industrial, office or residential REIT, it's got a bit of everything. Dream Industrial REIT (TSE:DIR.UN) might be the best combination of value and growth in the sector. Yes, COVID-19 could slow these expansion plans of the REIT. Both management and Sandpiper wants to focus on industrial properties. One of these criteria is that the company redistributes at a minimum of 90% of its net earnings back to shareholders in the form of dividends. Trustees of the REIT hold legal title to and manage the trust property … About RioCan Real Estate Investment Trust RioCan Real Estate Investment Trust owns and manages shopping Centers in Canada. The post CRA: You Have Until the Year-End to Claim the $443 Emergency GST Refund appeared first on The Motley Fool Canada… If retailers start going out of business, it could give Plaza a lot of shopping centres to buy and fix up. One of the fun things about Canada’s top REITs is they’re a diverse group of companies and you'll find a little bit of everything on the Toronto Stock Exchange. H&R is one of the cheapest REITs in Canada trading at 6.8x 2019’s FFO and a steep discount to book value. Artis Announces US$58 Million Joint Vent... January 6, 2021. Net income is pretty much meaningless in the REIT world. Management has used the attractive valuation to buy back over 8% of the units outstanding this year. Email Print Friendly Share. Real Estate Investment Trust Discussion: Artis REIT September 21, 2020. CT REIT is an unincorporated Real Estate Investment Trust that purchases and manages retail buildings all across Canada. They see that Dream Office is a bargain. Real estate companies, including REITs (real estate investment trusts) or similar structures tend to be small-cap and mid-cap companies, and their shares may be more volatile and less liquid. However, Stocktrades is by no means associated with the Toronto Stock Exchange, or any of the companies we cover. That stake is worth a little under $340 million. Stocks in play: RioCan Real Estate Investment Trust. Like other Canadian REITs, Artis REIT was weighed down by a lot of exposure to the Calgary office market in 2015. That’s a solid payout ratio for a REIT that yields 7.5%. H&R REIT has ownership interests … This compares to its average interest rate in 2019 of 3.59%. Stocktrades offers strictly investment opinions, not investment advice. Founded in 2010, ZRE has holdings in 23 REITs, which invest in everything from large-cap companies like Milestone Apartments REIT (MST-UN.TO) to also smaller real estate firms such as Crombie REIT (CRR-UN.TO). as valuation metrics for a Canadian real estate investment trust. That impacts the bottom line, but not the true picture of profitability. 35% of net operating income comes from industrial assets currently, and Artis has a lot of properties where it wants to develop new industrial buildings. This provides REITs with the money to buy and manage real estate. It then renovates those stores into multiple, smaller spaces, and then leases those at higher rents. The Motley Fool. Real Estate Investment Trusts in Canada industry outlook (2020-2025) poll Average industry growth 2020-2025: x.x lock Purchase this report or a membership to unlock the … Even if you just use 2019’s financials though, Dream Industrial looks inexpensive. Sun is a real estate investment trust focused on acquiring high-quality, multi-family residential real estate assets in the Sunbelt region of the United States, the first of which is a recently acquired controlling interest by Sun in a 288-unit multi-family residential property in Tallahassee, Florida. And it has. This is a trust (other than a trust that is a real estate investment trust for the tax year or an entity that is an excluded subsidiary entity) that meets all of the following conditions at any time during the tax year: the trust is resident in Canada; investments in the trust … H&R REIT (TSX:HR.UN) has been beaten up because of a combination of poor short-term results, a little uncertainty surrounding a key asset, the impact of COVID-19 on the portfolio, and, of course, a recent distribution cut. This small-cap specialty REIT has loads of potential. If we look just at SmartCentres as it currently is, we can fairly conclude it is cheap. H&R also came out with some disappointing results lately, which included a dip in operating income caused by some unexpected vacancies. Is National Bank (TSX:NA) Canada’s Best Kept Secret? it has an expense ratio of 0.61%. The REIT started 2020 with 209 properties after selling some of its lower quality assets in 2019. Property Portfolio. Melcor REIT is a Real Estate Investment Trust, and an extension of Melcor Developments Ltd. View investor relations information, portfolio, and annual reports. In the second quarter of 2020, when every company was thinking about permanently working from home, the REIT was still able to lease 250,000 square feet of space at rents 40% higher than the expiring leases. RioCan owns, manages and develops retail-focused, increasingly mixed-use properties located in prime, high-density transit-oriented areas … The most versatile and in-depth investment platform in Canada is just a click of a button away, Disclaimer: The writer of this article may have positions in the securities mentioned in this article. Choice Properties is a leading Real Estate Investment Trust that creates enduring value through the ownership, operation and development of high-quality commercial and residential properties. The Centurion Apartment Real Estate Investment Trust (“REIT”) invests in a diversified portfolio of rental apartments and student housing properties across Canada and the United States and participates in the profits derived from them. Artis trades at just 7.3x 2019's FFO and around 67% of NAV. A testamentary trust is a trust or estate that is generally created on and as result of the death of the person. As an example, in the third quarter Dream Industrial borrowed $150 million at an interest rate of just 0.9%. The current unit price is around $12. Property … Capital growth is an increase in the value of an asset or investment over time measured by its current value compared to its purchase price. Remember REITs issue units instead of shares, but units and shares are the same thing for all intents and purposes. And others, like SmartCentres, Plaza Retail REIT, and Dream Industrial, are just excellent operators that do everything right. START HERE. About Us:Stocktrades.ca was founded in 2016 by investors Daniel Kent and Dylan Callaghan, with the ultimate goal of providing Canadian investors with the best possible tools to increase their investment portfolios. Allied Properties REIT: Real Estate Investment Trust in Canada, North America. alstria.com. Plaza trades at just 8.5x 2019’s FFO. Even after the distribution cut, H&R REIT offers a 5.9% yield. Skyline Retail Real Estate Investment Trust (REIT) is an income-producing opportunity to invest in a 100% Canadian diversified portfolio of retail properties with a focus on trusted national brands with long-term leases. Most Canadian REITs tend to hang out at a 50% debt-to-assets ratio. Many investors don’t know the first thing about Canadian real estate investment trusts (REITs). Whether the activist investor or management wins the proxy fight, Artis REIT has a lot of ways to return to its fair value. You want to make sure when a REIT issues units to make acquisitions (which is common in the sector because REITs pay out so much of their income) that the deal is accretive to shareholders. Artis' portfolio is well diversified. The REIT has a goal of getting to 50% industrial exposure, a goal Sandpiper hasn’t argued with. Of course it also means Sandpiper can easily increase the distribution if they get control. Latest News. Late to the party compared to the U.S., Canadian Real Estate Investment Trusts (REITs) were first established in 1993. You have until the year-end to file your 2018 returns and claim this refund. Real Estate Investment Trust (REIT): Some of the conditions in this trust include at least 90% of the trust's portfolio must include qualified REIT properties. Dream Industrial REIT is a Canada-based industrial REIT with a portfolio of 209 industrial, distribution, and warehouse properties with 1,400+ tenants and an aggregate of 21.8M sq. Michael Zakuta, the CEO of Plaza, has said the REIT is more about developing properties. The valuation is great, but the development is what is most exciting. Featuring TD Canada Trust online banking Since the company’s 2015 IPO, it has more than doubled the size of its portfolio to 61 dealerships and 2.3 million square feet of leasable space. It gives the REIT plenty of excess cash that can be spent on unit buybacks, acquiring new properties, debt paydown, or developing industrial properties. They can hold any … Company: Nexus Real Estate Investment Trust TSX-Venture Symbol: NXR.UN. Allied Properties REIT is a leading owner, manager and developer of urban office environments that enrich experience and enhance profitability for business tenants operating in Canada’s major cities. Its YTD daily total return is 26.48% and its three-year return, 14.25%. VANCOUVER, BC, Jan. 8, 2021 /CNW/ - The following issues have been halted by IIROC: . Melcor REIT is an an unincorporated open-ended real estate investment trust, that acquires, manages and leases quality commercial properties in western Canadian markets. The REIT plans to expand in the U.S. residential market. The fact they hold positions in securities has had no impact on the production of this article. Using the stock’s closing price of $34.31, the fund has a distribution yield of 3.16%. After selling off non-core assets and cutting its distribution to a more reasonable level, Dream was left with a portfolio consisting of 5.5 million square feet of office space, mostly in Downtown Toronto. They won't abandon these locations just because of a few lean months. The Company has ownership in Canadian retail and mixed use properties. Allied’s business is providing knowledge-based organizations with distinctive urban environments for creativity and connectivity. Right now SmartCentres yields 8.8%. ZRE has AUM of $651.93 million, and it's trading around $24, for a distribution yield of 4.01%. European Residential REIT (ERES REIT) is a publicly traded (TSX: ERE.UN) unincorporated, open-ended real estate investment trust focused on aggregating a portfolio of high quality, multi-residential real estate … Those looking for more exotic pastures might consider Canadian REIT ETFs, which first came into existence 20 years ago. Canadian Pacific Plaza | 120 South Sixth Street, Minneapolis MN . Investing in a REIT gives you access to a liquid diversified portfolio of real estate assets, without the need to manage anything on your own. Artis is a diversified Canadian real estate investment trust investing primarily in industrial and office properties in select markets in Canada and the United States. REIT is governed by and established pursuant to a declaration of trust. Automotive Properties’ portfolio will expand as more dealerships get sold to these big operators, a trend that should continue over the next decade. Artis to spin off retail assets September 9, 2020. Unlike U.S. REITs, which are corporations, Canadian REITs are unincorporated investment trusts. European interest rates are much lower than in North America. SmartCentres has an incredible pipeline of development projects. More companies are going to utilize work from home employees, I'm confident the Downtown Toronto market will still be hot even if overall office demand goes down. Meanwhile, Real Estate Investment Trusts (REITs) and Real Estate Operating Companies (REOCs) raised $6.5 billion. It’s easy to argue Artis units are undervalued, especially after being crushed by recent investor doubt. The distribution was cut, non-core assets were sold, and Artis embarked on a new strategy, one that emphasized stability and its strong office and industrial assets. 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