SmartCentres Real Estate Investment Trust (SRU). H%26R Real Estate Investment Trust. RioCan Real Estate Investment Trust (. Artis Real Estate Investment Trust (ARY).
Granite Real Estate Investment Fund (GRT). Luckily, there is a way to invest in real estate through the stock market itself. The REIT or Real Estate Investment Trust is a commonly overlooked investment asset that can be used to gain exposure to real estate. If you like consistent returns and a stable, generous dividend, there are plenty of Canadian REIT stocks investors can add to their portfolios.
A REIT is a company that owns and operates real estate and generates income through the payment of rents for its occupants. This can include residential properties, retail properties, or even industrial properties. Canadian REITs must have the property physically located within Canada and comply with special regulations that allow it to operate as a REIT. To qualify as a REIT, the trust must pay at least 90% of its taxable income as a dividend or distribution to shareholders.
In exchange for this generous payment, REITs are not required to pay any corporate taxes and also to own the property on which they collect rent. For shareholders, in exchange for owning REIT units, a healthy dividend or distribution is paid quarterly or even monthly, according to the REIT. Here is a list of top Canadian REIT stocks to add to your portfolio. H%26R is one of Canada's largest REITs in terms of market capitalization and assets under management.
Until the beginning of this year, the H%26R was a well-diversified REIT with residential and commercial stakes, headquartered in Toronto. If you look at the stock chart, you may notice a significant and sudden drop in the price of the REIT. The REIT now focuses primarily on residential real estate and has maintained its 4.0% dividend yield that is distributed monthly. Of these properties, 67% are in Canada's Atlantic, 23% in Ontario and 10% are divided between British Columbia and Alberta.
Killam REIT has earned an average of around 15% annually over the past five years, which doesn't even include the reinvested dividends it pays monthly. Dream Industrial REIT operates warehouses and fulfillment centers, as well as other industrial buildings. The REIT also has a stellar dividend yield of 4.25% and pays its distributions monthly. Not only is Riocan one of the best-known Canadian REITs, but it is also one of the largest in terms of market capitalization and asset value.
The company owns 214 different properties in its portfolio and has an impressive committed occupancy rate of 96.4%, with 91.4% of these properties in Canada's six largest markets. Riocan pays a monthly dividend with a yield of 3.98%. You might think offices aren't a big investment after the COVID-19 pandemic, but Slate focuses on high-quality tenants, such as government agencies. Are you starting to see a pattern here? Residential REITs offer the stability of owning rental property without the hassle of owning a rental property.
Monthly rent checks are great for REITs because it means that shareholders often receive monthly distributions. Canadian Apartment Properties is no different, with a monthly payment and an annual return of 2.67%. Boardwalk REIT has a long history of performing well for Canadian investors, apart from a sharp decline a few years ago after its Alberta portfolio was hit hard. Since then, Boardwalk REIT has more than recovered and has more than 33,000 properties in its portfolio.
Boardwalk has been consistently performing throughout the pandemic and is currently trading at its 52-week high prices. The waterfront administration is also putting its money where its mouth is, with 26% of the shares owned by insiders, which is quite a high percentage. Boardwalk's distribution is not as high as other REITs, with a monthly payout with a return of only 1.77%. Morguard was one of the Canadian REITs hardest hit during the pandemic, as it has heavy exposure to retail properties such as malls and malls.
There should be optimism that Morguard may rise once restrictions are lifted and that it should be able to restore the previous higher dividend yield in the future. Summit Industrial, a relatively unknown Canadian REIT, has 159 different warehouses and industrial centers across Canada. It also provides some exposure to data centers, one of the only Canadian REITs that provides this. Summit pays decent but not spectacular return of 2.46% and pays distributions monthly.
Smartcentres also has one of the best distributions, with a monthly payment with a return of 5.62%. High-dividend REIT stocks are excellent stabilizers in your portfolio and can add a sense of stability during times of volatility. Unfortunately for Questrade users, REITs do not fall under the category of ETFs, which means that trading fees are charged for transactions. Qtrade is a popular Canadian trading platform that offers all of the above mentioned REIT assets for you to add to your portfolio.
Canadian investors will love Canadian REIT stocks because of their stable prices, steady growth, and generous monthly or quarterly distributions. These are just ten of dozens of the top dividend REITs in Canada that can help you form the foundation of your long-term portfolio. Adding assets such as REITs to your portfolio can help you stay afloat and provide much-needed cash flow that is so valuable during economic uncertainty. By investing in both residential and commercial REIT stocks, investors can ensure that their portfolios are further diversified and safe from declines in any specific sector or industry.
The two assets are very different in terms of behavior and long-term objectives. Stocks have the potential for growth, while REITs won't show as much growth in the short term, but they can provide excellent cash flow to build your portfolio. Here it will be reduced to personal preferences. One thing to note is that REIT ETFs are traded for free on some trading platforms such as Qtrade or Wealthsimple, so it might be worth checking out if you use one of these platforms.
There aren't many to avoid per se, but in times of economic recession, avoiding REITs that focus on retail spaces such as shopping malls or entertainment spots such as cinemas can be a good option. These REITs will be the most likely to struggle to collect rent and will have struggling tenants when fewer consumers spend money. Trading fees low to 0.20% and support for multiple fiat currencies. Offers professionally managed, self-directed wallets.
Pro Reit is led by an experienced management team with significant experience in real estate and capital markets. While REITs don't appreciate on the same scale as real estate, they don't crash as hard either. A real estate investment trust or REIT (pronounced “REET”) is a company that gathers investors' money to buy and manage real estate. I still like Canadian REITs as a way to invest in real estate rather than buying and managing properties ourselves.
The largest REITs manage a large number of properties in various parts of the country, as well as in different real estate sectors, such as residential and commercial. Minto Apartment REIT is a Canadian real estate investment trust that owns and manages a collection of 29 multi-residential rental homes spread across the country. Winnipeg-based Artis REIT invests in commercial real estate in Canada and the United States. In addition to REITs, investing in rental properties is another popular way for people to get involved in real estate.
If you're looking for a way to invest in real estate without all the expenses and hassle of buying rental property, a REIT could be the way to go. If you're looking for an easy way to add the real estate asset class to your portfolio, REITs may be the right solution. As a diversified REIT, H%26R is an excellent option to consider because it invests in multiple categories of real estate. Like H%26R REIT, Net REIT is an excellent REIT stock to consider because it invests in multiple real estate segments.
Summit Industrial Income REIT participates in commercial leasing of real estate properties in Ontario, Quebec, Alberta, British Columbia and New Brunswick, with industry focus on light industry. There are a few reasons why you might consider adding real estate to your portfolio in the form of a REIT. . .