New assets will fuel your distributions

Article Excerpt

ALLIED PROPERTIES REAL ESTATE INVESTMENT TRUST $41 is a buy. The trust (Toronto symbol AP.UN; Cyclical-Growth Dividend Payer Portfolio, Manufacturing sector; Units outstanding: 123.1 million; Market cap: $5.0 billion; Dividend yield: 4.0%; Dividend Sustainability Rating: Above Average; www.alliedreit.com) last raised its monthly distribution in January 2020. Investors now receive $0.1375 a unit, up 3.0% from $0.133. The new annual rate of $1.65 yields a high 4.0%. Allied continues to acquire high-quality office buildings. As a result, the trust’s revenue increased by 9.7% for the quarter ended September 30, 2020, to $140.6 million from $128.2 million a year earlier. Cash flow rose 3.0%, to $59.8 million from $58.0 million. Per-unit cash flow fell 3.4%, to $0.481 from $0.498, on more units outstanding due to acquisitions. Allied Properties REIT is a buy. buy. …