These REITs weather the COVID-19 storm

Article Excerpt

Despite COVID-19’s impact on REITs, we continue to like the outlook for these two trusts. Their high-quality properties should continue to attract tenants without having to offer them deep discounts on rent. That should let them maintain their attractive distributions for investors. CHOICE PROPERTIES REIT, $12.50, is a buy. Canada’s biggest REIT (Toronto symbol CHP.UN; Units outstanding: 700.4 million; Market cap: $8.8 billion; TSINetwork Rating: Extra Risk; Dividend yield: 5.9%; creates value for investors through its 724 properties with a total of 65.6 million square feet of retail, industrial and office space. Its occupancy rate is a high 97.5%. Many tenants had to shutter their businesses due to the COVID-19 pandemic. The REIT also sold 30 of its properties in September 2019 for a total of $426.3 million. As a result, the trust’s revenue fell by 4.4% for the quarter ended September 30, 2020, to $309.0 million from $323.3 million a year earlier. Cash flow fell 2.9%, to $147.6 million from $152.0…

You are trying to access subscriber-only content.

To read this article, you may subscribe or sign in.
If you are already a subscriber, log in here.

If you wish to become a subscriber, click here. Or you may enjoy access to all our publications when you become a Member of Pat McKeough's Inner Circle Pro.