4 Income-Producing REITs to Consider This Spring
The Motley Fool
Published Mar 21, 2019 12:06
Updated Mar 21, 2019 12:35
Now that spring is officially here, it might be time to do some spring cleaning on your portfolio, and REIT investments can provide both the growth and income-producing capabilities that every investor should aspire to include in their portfolio.
Here are several intriguing options for REIT-seeking investors, all of which offer a very attractive distribution and unique growth opportunities.
RioCan REIT (TSX:REI.UN) is a long-time favourite among REIT investors, and for good reason too. As one of the largest REITs in the country, RioCan has a massive portfolio of primarily commercial retail-focused sites such as large shopping malls that host a variety of top-tier tenants that include some of the biggest names in the retail sector. Furthermore, RioCan boasts a strong occupancy rate with each passing quarter, and the current monthly distribution yield of 5.60% is sure to attract investors.
But that’s not even the best reason to consider RioCan. For that, investors should take a look at the company’s newest venture- a series of mixed-use properties under construction in the major metro areas of the country that will offset the decline in traditional retail store traffic while tending to unaffordability of real estate in Canada’s biggest cities.
The first properties are set to open later this year and will not only further diversify RioCan’s portfolio, but also provide a new revenue stream for the company.
Smart REIT (TSX:SRU.UN) is another primarily retail-focused REIT that comes with a twist. The newer breed of shopping properties that Smart is known for is commonly referred to as “power centres” and typically encompass one or more big-box anchor tenants followed by a series of smaller, yet still popular stores. The company also has a stake in the Premium Outlets stores located in both Toronto and Montreal. In total, Smart has a portfolio of 34 million square feet of assets, with that real estate valued in the billions.
Smart Centre appeals to those investors looking to diversify their portfolio outside of the residential sector while still maintaining a steady stream of growth. In terms of the distribution, Smart Centre offers a handsome 5.25% yield on a monthly payout that has seen annual upticks stemming back several years.
Get The App
If residential properties are more to your liking, than Northview Apartment REIT (TSX:NVU) is worthy of consideration. Northview’s multi-family properties are scattered across eight provinces and two territories, providing a total of 27,000 residential properties. While Northview does have a smaller commercial sector as well, the residential properties, or more specifically the locations of those residential units are what makes this REIT unique.
Northview has targeted secondary markets around the country instead of the large-city focus that other REITs have placed an emphasis on. At first, this may seem like a strange strategy, but when factoring in the limited supply across those markets, the lower cost of acquisition and consistent (if not growing) demand for affordable housing, that secondary market focus is something unique and potentially lucrative for long-term investors.
In terms of the distribution, Northview provides a monthly payout with a respectable 5.68% yield.
Unlike the REITs mentioned above that focused solely on one specific area, H&R REIT (TSX:HR.UN) is a different REIT that spans across the retail, office, industrial and residential space. In total, the REIT, which also happens to be the third largest REIT in Canada, has over 38 million square feet of real estate, and in recent years has shifted to expanding outside of Canada and into the U.S. market.
For investors looking to cast a wide net across broad segments of the market, H&R might just be the REIT to select. Adding to that diversification appeal comes the monthly distribution, which currently provides a very appetizing yield of 6.03%.
Fool contributor Demetris Afxentiou has no position in any of the stocks mentioned.
The Motley Fool’s purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool Canada’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Motley Fool Canada 2019
This Article Was First Published on The Motley Fool
Written By: The Motley Fool
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.