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.
Real Estate Investment Trusts (REITs) dropped in price last November when Ottawa announced that it will impose a tax on income trust distributions in 2011. However, REITs were exempt from the prosposed new tax, and all of our REIT recommendations went on to reach new all-time highs. We advise against overindulging in REITs. But if you stick with the highest quality, like the REITs we recommend on this page, you should make attractive long-term returns with low risk. RIOCAN REAL ESTATE INVESTMENT TRUST $26.61 (Toronto symbol REI.UN; SI Rating: Average) is Canada’s largest REIT. RioCan has total assets of $4.6 billion, consisting of ownership interests in a portfolio of 206 retail properties across Canada, including nine under development. These properties contain over 52.1 million square feet of leasable area....
ISHARES CDN REIT SECTOR INDEX FUND $17.55 (Toronto symbol XRE; buy or sell through a broker) holds the 12 Canadian real estate investment trusts (REITs) in the S&P/TSX Capped REIT Index. The weight of any one REIT in the value of the S&P/TSX Capped REIT Index is limited to 25%. RioCan REIT makes up 23.7% of the index’s value; H&R REIT, 14.5%; Boardwalk REIT, 9.2%; Calloway REIT, 8.5%; Canadian REIT, 8.4%; Dundee REIT, 6.1%; Chartwell Seniors Housing REIT, 5.6%; Canadian Apartment Properties REIT, 5.6%; Primaris Retail REIT, 5.0%; Extendicare REIT, 4.6%; Legacy Hotels, 4.1%; and Innvest REIT, 3.6%. We’ve glad to see that the top holding is RioCan, one of our favorite REITs. In fact, three of the top five holdings are among our recommendations. Note that iShares REIT holds a couple of REITs we don’t recommend....
High quality Real Estate Investment Trusts, or REITs, are among the most stable of the royalty and investment trusts. That’s because they own nondepleting assets, and can lock in lease rates and financing costs for long terms. Investors are also aware of the takeover prospects for REITs these days. That’s not reason enough alone to buy them, but it’s a plus. The REITs we recommend hold top-quality assets. In contrast, many other types of trusts hold lowquality assets in volatile industries such as resources and commodities, sugar production or restaurants. These trusts expose holders to hidden business risks that could have a sudden, devastating effect on their cash flow and yields....
ISHARES CDN REIT SECTOR INDEX FUND $14.78 (Toronto symbol XRE; buy or sell through a broker) holds the 12 Canadian real estate investment trusts (REITs) in the S&P/TSX Capped REIT Index. The weight of any one REIT, in terms of market capitalization (unit price times units outstanding), is limited to 25%. RioCan REIT makes up 24.1% of the index’s value; H&R REIT, 13.6%; Summit REIT, 10.8%; Calloway REIT, 9.1%; Boardwalk REIT, 8.4%; Canadian REIT, 7.8%; Canadian Apartment Properties REIT, 5.3%; Chartwell Seniors Housing REIT, 4.8%; Primaris Retail REIT, 4.8%; Legacy Hotels, 4.1%; Innvest REIT, 3.8%; and Retirement Residences REIT, 3.5%. We’ve glad to see that the top holding is RioCan, one of our favorite REITs. In fact, four of the top six holdings are among our recommendations. Note that iShares REIT holds a couple of REITs we don’t recommend....
GUARDIAN MONTHLY HIGH INCOME II FUND $16.06 (CWA Rating: Income) (GGOF Guardian Group of Funds, Commerce Court West, Suite 4100, P.O. Box 201, Toronto, Ontario M5L 1E8. 1-800-668- 5613; Web site: www.ggof.com. Available from brokers) emphasizes more stable real estate investment trusts (REITs), and high-quality, long-lived resource trusts. We think investors should diversify carefully with trusts, and emphasize those with stable cash flows, a low need for capital expenditures and mature business operations. The $1.3 billion fund’s top holdings are: ARC Energy Trust, Canadian Oil Sands Trust, Rio- Can REIT, Canadian REIT, Yellow Pages Income Fund, Enerplus Resources Fund, Penn West Energy Trust, Peyto Energy Trust and BFI Canada Income Fund....
IUNITS S&P/TSX CAPPED REIT INDEX FUND $14.22 (Toronto symbol XRE; buy or sell through a broker) holds 12 Canadian real estate investment trusts (REITs). In the Capped REIT Index, the weight of any one REIT, in terms of market capitalization (unit price times units outstanding), is limited to 25%. RioCan REIT makes up 24.6% of the index’s value; H&R REIT, 14.7%; Summit REIT, 10.2%; Canadian REIT, 7.8%; Calloway REIT, 8.3%; Boardwalk REIT, 6.2%; Retirement Residences REIT, 5.4%; Canadian Apartment Properties REIT, 5.3%; Legacy Hotels REIT, 4.3%; Chartwell Seniors Housing REIT, 4.6%; Innvest REIT, 3.6%; and Primaris Retail REIT, 5.0% We’ve glad to see that the top holding is RioCan, one of our favourite REITs. In fact, all of the top four holdings are among our recommendations. Note that iUnits REIT holds a couple of REITs we don’t recommend....
RIOCAN REAL ESTATE INVESTMENT TRUST $23.07 (Toronto symbol REI.UN; SI Rating: Average) is Canada’s largest REIT. RioCan has total assets of $4.2 billion consisting of ownership interests in a portfolio of 201 retail properties across Canada, including 14 under development. These properties contain over 50 million square feet of gross leasable area. RioCan is Canada’s largest owner of neighbourhood shopping centres. These are enclosed malls in smaller urban centres. But where it’s showing the strongest growth is as the largest owner of ‘New Format’ malls. These are in the suburbs of larger cities, and are made up largely of ‘Big Box’ stores with lots of parking and room for new building. RioCan’s revenue in the three months ended September 30, 2005 was $149.8 million, up 8.6% from $138 million a year earlier. Cash flow per unit fell 3.3%, to $0.29 from $0.30. RioCan’s annual distribution of $1.29 gives it a current yield of 5.6%....