Their strategic plans support your income

Article Excerpt

The high-quality properties of these top REITs—along with their high yields—enhance your long-term returns. While COVID-19 has increased their risk, their long-term strategies should continue to pay off. Their current distributions also look sustainable. DREAM OFFICE REIT $20 is a buy. The REIT (Toronto symbol D.UN; Cyclical-Growth Dividend Payer Portfolio; Manufacturing sector; Units outstanding: 56.2 million; Market cap: $1.1 billion; Dividend yield: 5.0%; Dividend Sustainability Rating: Average; www.dream.ca) launched a three-year strategic initiative in 2016. As part of that plan, it sold roughly 138 properties for $3.7 billion. It used $1.8 billion of the proceeds to pay down its high-interest debt. It also repurchased over $1.1 billion of its outstanding units. The trust now has 31 office properties, including two under development. These properties have a total of 5.5 million square feet of gross leasable area. In addition, it has 50% interest in a 22,000 square foot building in downtown Toronto. The highly profitable downtown Toronto market supplies 77% of its rental revenue. Dream Office’s occupancy…

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