These REITs feature steady distributions

Article Excerpt

CHOICE PROPERTIES REIT $12 (Toronto symbol CHP.UN; Cyclical-Growth Payer Portfolio; Manufacturing & Industry sector; Units o/s: 277.2 million; Market cap: $3.3 billion; Divd. yield: 6.2%; Dividend Sustainability Rating: Above Average; www.choicereit.ca) acquired Canadian REIT (old symbol REF.UN) on May 7, 2018. The merger created Canada’s biggest real estate investment trust: 751 properties for a total of 66.8 million square feet of retail, industrial and office space. Choice Properties pays monthly distributions of $0.061667 a unit. The annual rate of $0.74 yields a high 6.2%. In the quarter ended September 30, 2018, the REIT’s revenue jumped 52.5%, to $315.6 million from $207.0 million a year earlier. Overall cash flow jumped 78.7%, to $137.5 million from $77.0 million. Due to the extra units outstanding as a result of the merger with Canadian REIT, cash flow per unit rose 10.2%, to $0.205 from $0.186. Loblaw (Toronto symbol L) formed Choice Properties in 2013 to hold its real estate properties. As a result of the merger with Canadian REIT, Loblaw…

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