These REITs just raised their distributions

Article Excerpt

Thanks to the re-opening of offices and shopping malls with the end of COVID-19 restrictions, these two REITs are rewarding investors with higher distributions. ALLIED PROPERTIES REAL ESTATE INVESTMENT TRUST $28 is a buy. The REIT (Toronto symbol AP.UN; Cyclical-Growth Dividend Payer Portfolio, Manufacturing sector; Units outstanding: 128.0 million; Market cap: $3.6 billion; Distribution yield: 6.4%; Dividend Sustainability Rating: Above Average; www.alliedreit.com) owns 200 office buildings and 13 properties under development, mainly in major Canadian cities. Starting with the January 2023 payment, Allied raised its monthly distribution by 2.9%. The new annual rate of $1.80 a unit yields a high 6.4%. Allied acquired six office properties in Toronto, Montreal, and Vancouver from Choice Properties REIT (Toronto symbol CHP.UN) for $774.6 million in March 2022. It also recently paid $126.2 million for a property in Montreal. The purchases are largely why its revenue in the quarter ended December 31, 2022, rose 10.9%, to $135.9 million from $122.5 million a year earlier. Cash flow per unit also increased by 4.7%,…