Canadian REIT
Toronto symbol REF.UN, focuses on acquiring properties in prime locations, usually near major metropolitan centres. That attracts strong tenants, maintains high occupancy rates and delivers a reliable stream of rental income.
Pat McKeough responds to many personal questions on specific stocks and other investing topics from the members of his Inner Circle. Every week, his comments and recommendations on a selection of the most intriguing questions of the past week go out to all Inner Circle members. And every Friday, we offer you one of the highlights from these Q&A sessions.
REITs …read more »
CANADIAN REIT $34.99 (Toronto symbol REF.UN; Units outstanding: 67.0 million; Market cap: $2.4 billion; TSINetwork Rating: Extra Risk; Dividend yield: 4.1%; www.creit.ca) owns over 160 properties, including retail, industrial and office buildings, located across Canada and in the Chicago area. These properties contain over 22 million square feet of leasable area. Its occupancy rate is 93.3%.
In the three months ended …read more »
The federal government’s tax on income-trust distributions has now been in effect for a little more than six months, since January 1, 2011.
However, Ottawa feels the income-trust business structure is still appropriate for real estate investment trusts (REITs), so it has exempted REITs from the new tax. That’s great news for Canadian income seekers.
What’s more, as we predicted in …read more »
DUNDEE REIT, symbol D.UN on Toronto, owns and manages 14.7 million square feet of office, industrial and retail space, including 88 office buildings and 49 industrial properties. The real estate investment trust’s occupancy rate is 96.1%.
In the three months ended March 31, 2011, Dundee’s revenue rose 57.4%, to $91.0 million from $57.8 million a year earlier. Most of the rise …read more »
CANADIAN REIT $33.46 (Toronto symbol REF.UN; Units outstanding: 66.5 million; Market cap: $2.3 billion; TSINetwork Rating: Extra Risk; Dividend yield: 4.3%; www.creit.ca) owns over 160 properties, including retail, industrial and office buildings located across Canada and in the Chicago area. These properties contain over 22 million square feet of leasable area. Its occupancy rate is 94.2%.
In the three months ended …read more »
Real estate investment trusts (REITs) are exempt from Ottawa’s income-trust tax, which came into effect January 1, 2011. That exemption makes REITs’ high yields more attractive, because most trusts have converted to corporations or cut their distributions in response to the new tax. Our REIT recommendations have all moved up, but we still think they offer attractive long-term returns at …read more »
RIOCAN REAL ESTATE INVESTMENT TRUST $23.94 (Toronto symbol REI.UN; Units outstanding: 250.9 million; Market cap: $6.0 billion; TSINetwork Rating: Average; Dividend yield: 5.8%; www.riocan.com) is Canada’s largest real estate investment trust (REIT). It has interests in 297 shopping malls in Canada, including 10 under development. These properties contain over 70 million square feet of leaseable area. The trust has a …read more »
CANADIAN REIT $32 (Toronto symbol REF.UN; Units outstanding: 66.6 million; Market cap: $2.1 billion; SI Rating: Extra Risk; Dividend yield: 4.4%; www.creit.ca) owns over 160 properties. Its holdings include retail, industrial and office buildings located across Canada, and in the Chicago area. In all, these properties contain over 22 million square feet of leasable area. Canadian REIT’s occupancy rate is …read more »
Most real estate investment trusts (REITs), including our recommendations, are exempt from Ottawa’s new tax on income-trust distributions, which comes into effect on January 1, 2011. As a result, these REITs should continue to attract investor interest as the tax prompts more trusts to convert to corporations and cut their distributions.
RIOCAN REAL ESTATE INVESTMENT TRUST $23.15 (Toronto symbol REI.UN; …read more »
ISHARES CDN REIT SECTOR INDEX FUND $14.04 (Toronto symbol XRE; buy or sell through a broker; ca.ishares.com) holds the 13 Canadian real estate investment trusts (REITs) in the S&P/TSX Capped REIT Index. The weight of any one REIT is limited to 25% of iShares CDN REIT Sector Index Fund’s value.
iShares CDN REIT’s expenses are just 0.55% of its assets. …read more »
