Focused growth will power these REITs

Article Excerpt

ALLIED PROPERTIES REAL ESTATE INVESTMENT TRUST $43.94 (Toronto symbol AP.UN; Units outstanding: 100.3 million; Market cap: $4.4 billion; TSINetwork Rating: Extra Risk; Dividend yield: 3.6%; www.alliedreit.com) owns 147 office buildings, mainly in major Canadian cities. Most of those are classified as Class I buildings. Together, they comprise over 10.9 million square feet of leasable area. The REIT’s occupancy rate is 94.9%. Class I refers to 19th- and early-20th-century industrial buildings that are now used as office space. They often have exposed beams and brick walls, and hardwood floors. Allied continues to grow steadily by acquisition. In 2016, it spent $376.7 million on seven properties in major Canadian cities, including Calgary and Toronto. In 2017, it spent $122.7 million on six properties. So far in 2018, it has spent $17.2 million on five more properties. Altogether, new buildings helped raise the trust’s revenue by 3.7% for the quarter ended June 30, 2018, to $107.0 million from $103.1 million a year earlier. Cash flow per unit rose…

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