Buy these REITs for income but also growth

Article Excerpt

The market plunge in the wake of the COVID-19 crisis lowered prices for many stocks and most REITs. But with REITs, you also face the coronavirus’s very real impact on the ability of tenants to pay their rent. Still, government transfers to individuals and businesses are helping to offset that uncertainty. Recent interest rate cuts are another big plus considering the heavy debt loads of most REITs. The two REITs featured here are increasingly focused on their high-value core markets. That strengthens their appeal for income seekers. We’re confident that their high-quality properties in top urban markets will let both REITs rebound quickly, and spur your gains and distributions. CHOICE PROPERTIES REIT, $12.68, is a buy. Canada’s biggest REIT (Toronto symbol CHP.UN; Units outstanding: 700.4 million; Market cap: $8.9 billion; TSINetwork Rating: Extra Risk; Dividend yield: 5.8%; www.choicereit.ca) creates value for investors through its 724 properties with a total of 65.6 million square feet of retail, industrial and office space. Its occupancy rate is a high…

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