Saturday, June 30, 2018
One thing I love about investing is discovering new and potentially lucrative opportunities to invest in, and one area that continues to attract a lot of interest are REITs (real estate investment trusts).
Simply stated, REITs are an excellent option for everyday investors to enter the world of being a landlord and collecting, in many cases, a monthly distribution from a portfolio of dozens, if not hundreds, of different properties.
Here are a few great REITs to consider adding to your portfolio today.
BTB Real Estate Investment Trust (TSX:BTB.UN) caters to the commercial, industrial, and office segments of the economy, with a portfolio that consists of 70 properties with a combined 5.2 million square feet across parts of Quebec and Ontario.
BTB may have a smaller portfolio than many of its peers, but that doesn’t mean that the distribution offered by the company should be any less. BTB currently offers a monthly distribution that pays a very impressive 8.97%
In terms of results, in the first fiscal of 2018, BTB reported rental income of $21.4 million, representing an increase of 12.6% over the same period last year. Net operating income for the quarter came in at $11.45 million, up from the $9.84 million reported in the same quarter last year. Occupancy rates across BTB’s portfolio have remained stable over the course of the year at just over 89%.
BTB currently trades at $4.64 with a P/E of 6.82.
American Hotel Income Properties REIT LP (TSX:HOT.UN) is another great investment worthy of consideration. The company is invested in hotel properties primarily in the U.S. market, specifically targeting secondary markets. In total, the company spans 33 different state markets, encompassing 91 cities under 18 different brands.
When it comes to a monthly distribution, American Hotel offers investors an incredible 10.29% yield, which is sure to attract the interest of income-seeking investors.
In the most recent quarter, American Hotel reported total revenues of US$81.06 million, representing an impressive leap over the US$61.72 million posted in the same quarter last year. Much of that growth can be attributed to new acquisitions made by the company in the year, reflected in the company’s expenses, which surged from US$49 million last year to US$67 million in the most recent quarter.
Slate Office REIT (TSX:SOT.UN) is a REIT that is on the smaller side, with just 45 properties that combine to hold 7.5 million square feet. Unlike other REITs that cater to multiple segments, Slate is a pure-play office REIT, which holds some advantages.
Despite the smaller footprint, Slate has a very diversified portfolio of properties with locations in over half a dozen provinces, and in terms of a distribution, Slate impressively offers a 9.75% yield that is distributed on a monthly basis.
Slate is set to announce results for the second fiscal quarter later this summer in August, but in the first quarter, Slate reported net income of $7.9 million, $500,000 lower than the same period last year, and rental revenues of $44.3 million, which came in $1.9 million higher over the same period last year.
True North Commercial REIT (TSX:TNT.UN) is as the name implies, a REIT focused on commercial properties. True North currently has over 40 commercial properties that are spread out over five provinces, with the majority of the properties located in Ontario and New Brunswick.
In addition to providing a monthly distribution that pays out a 9.04% yield, True North’s portfolio has a 7% occupancy with an average lease term of over four years. Even better is that a sizable portion of True North’s tenants are government offices, which, to put it another way, translates into stable tenants for the long term.
Furthermore, the company continues to look for additional assets to acquire, the most recent of which was announced earlier this month — a flagship property in Toronto with direct access to transit. The building already carries an occupancy rate in excess of 90%, of which 74% of the tenants are government and credit rated.
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More reading
- The 10 Highest-Yielding Canadian Dividend Stocks in the Market Today
- The Top 5 Stocks for Dividend-Hungry Investors
- TFSA Investors: 3 Cheap Dividend Stocks That Pay up to 10%
Fool contributor Demetris Afxentiou has no position in any stocks mentioned.
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