Topic: How To Invest

Dividend Advisor Hotline – Friday, July 24, 2020

Article Excerpt

CHOICE PROPERTIES REIT, $12.42, Toronto symbol CHP.UN, is a top pick for 2020. Choice acquired Canadian REIT (old symbol REF.UN) on May 7, 2018. The merger created Canada’s biggest real estate investment trust: 724 retail, industrial and office properties totalling 65.6 million square feet of leasable area. Its occupancy rate is a high 96.8%. The REIT’s investors get monthly distributions of $0.061667 a unit. The annual rate of $0.74 gives you a very high yield of 6.0%. Many businesses had to temporarily shut down 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, Choice’s revenue in the quarter ended June 30, 2020, fell 3.0% to $330.2 million from $340.5 million a year earlier. Cash flow declined 17.4%, to $140.6 million from $170.2 million. Due to more units outstanding, cash flow per unit fell 19.0%, to $0.201 from $0.248. If you disregard unusual items, including higher provisions for rent defaults because…

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