Strong collection rates protect your payments

Article Excerpt

Despite the closures of offices due to COVID-19, these two REITs continue pay their investors steady distributions. That’s due to their high-quality properties and tenants, who continue to pay their rent. ALLIED PROPERTIES REAL ESTATE INVESTMENT TRUST $44 is a buy. The trust (Toronto symbol AP.UN; Cyclical-Growth Dividend Payer Portfolio, Manufacturing sector; Units outstanding: 127.3 million; Market cap: $5.6 billion; Dividend yield: 3.9%; Dividend Sustainability Rating: Above Average; www.alliedreit.com) owns 192 office buildings and 10 properties under development, mainly in major Canadian cities. The overall occupancy rate is 91.4%. Starting with the January 2021 payment, the REIT raised its monthly distribution by 3.0%. Investors now receive $0.1417 a unit instead of $0.1375. The annual rate of $1.70 yields a high 3.9%. Revenue increased by 1.8% for the quarter ended March 31, 2021, to $141.8 million from $139.3 million a year earlier. Allied collected 97.6% of the rent due in the first quarter. Cash flow per unit rose 3.0%, to $0.521 from $0.506. The average…