CANADIAN REIT $42.88 (Toronto symbol REF.UN; Units outstanding: 68.4 million; Market cap: $2.9 billion; TSINetwork Rating: Extra Risk; Dividend yield: 3.9%; www.creit.ca) owns over 192 properties, including retail, industrial and office buildings, across Canada and in Chicago. These holdings contain over 19.7 million square feet of leasable area. The trust’s occupancy rate is 94.9%.
In the three months ended March 31, 2013, Canadian REIT’s revenue rose 8.9%, to $91.4 million from $83.9 million a year earlier. Cash flow per unit rose 6.3%, to $0.68 from $0.64.
Canadian REIT added just $11.3 million of new properties in the latest quarter. However, it bought $401.9 million of buildings in 2012. That includes a 50% stake in Calgary Place, a 575,000-square-foot office and retail complex, for $156.0 million.
The trust has just increased its distribution for the second time this year. Canadian REIT will now pay $0.1375 monthly, up 6.6% from $0.129. That gives it a 3.9% yield.
The REIT’s broad diversification cuts its risk. It has 38% of its assets in Alberta, followed by Ontario, 27%; Atlantic Canada, 14%; B.C., 9%; Quebec, 8%; the Prairies, 2%; and the U.S., 2%. Shopping malls account for 53% of its properties, followed by office (26%) and industrial (21%).
Canadian REIT is still a buy.
