Topic: How To Invest

Dividend Advisor Hotline – Friday, December 20, 2019

Article Excerpt

CHOICE PROPERTIES REIT, $13.74, Toronto symbol CHP.UN, remains a top pick for your 2019 buying. Choice acquired Canadian REIT (old symbol REF.UN) on May 7, 2018. The merger created Canada’s biggest real estate investment trust: 726 properties, including 19 under development, for a total of 65.5 million square feet of retail, industrial and office space. Its occupancy rate is a high 97.8%. The REIT’s investors get monthly distributions of $0.061667 a unit. The annual rate of $0.74 gives you a high yield of 5.4%. On December 31, 2019, Choice will also pay its investors a special non-cash distribution of $0.07 a unit. That payment represents the capital gains generated by the recent sale of 30 properties. The extra payment represents a portion of net realized capital gains of the REIT, thus this special distribution will be treated as a capital gain, and will be reflected in investors’ 2019 Trust Income slips. Further, the special distribution will raise the adjusted cost base of your units and…

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