Topic: How To Invest

Dividend Advisor Hotline – Friday, May 3, 2019

Article Excerpt

CHOICE PROPERTIES REIT, $13.50, Toronto symbol CHP.UN,acquired Canadian REIT (old symbol REF.UN) on May 7, 2018. The merger created Canada’s biggest real estate investment trust: 756 properties, including 21 under development, for a total of 67.7 million square feet of retail, industrial and office space. Its occupancy rate is a high 97.4%. Choice Properties pays monthly distributions of $0.061667 a unit. The annual rate of $0.74 yields a high 5.5%. Due to the additional properties, the REIT’s revenue in the quarter ended March 31, 2019, jumped 50.0%, to $323.0 million from $215.2 million a year earlier. Overall cash flow rose 60.2%, to $169.3 million from $105.7 million. Due to the extra units outstanding as a result of the merger with Canadian REIT, cash flow per unit declined 1.2%, to $0.252 from $0.255. Choice Properties now plans to sell up to $345 million in new units at $13.15 a unit. That will increase the total number of units outstanding by roughly 4%. The REIT will…