Buy these two REITs for sustainable payouts

Article Excerpt

CANADIAN REIT $49 (Toronto symbol REF.UN; Cyclical-Growth Dividend Payer Portfolio, Manufacturing & Industry sector; Units outstanding: 73.3 million; Market cap: $3.6 billion; Dividend Sustainability Rating: Above Average; Dividend yield: 3.7%; www.creit.ca) owns 205 properties across Canada and Chicago. They include retail (55% of income), industrial (23%) and office buildings (22%), In all, they total 25.4 million square feet, and the trust’s occupancy rate is 94.8%. Canadian REIT’s top five tenants by rental revenue are Canadian Tire, Suncor, Loblaw, TJX (parent of Winners), and Staples. Its top three markets are Alberta, accounting for 37% of its income; Ontario (28%;) and Atlantic Canada (13%). In the three months ended March 31, 2017, the trust’s revenue rose 4.9%, to $117.2 million from $111.7 million a year earlier. Cash flow per unit gained 10.8%, to $0.72 from $0.65. Canadian REIT will now pay $61.0 million to buy the remaining 50% of Mahogany Village Market, a retail development in Calgary. That will give it 100% ownership of the…