High, safe yields from growing REITs

Article Excerpt

ALLIED PROPERTIES REAL ESTATE INVESTMENT TRUST $34.29 (Toronto symbol AP.UN; Units outstanding: 68.7 million; Market cap: $2.4 billion; TSINetwork Rating: Extra Risk; Dividend yield: 4.1%; www.alliedpropertiesreit.com) owns 133 office buildings, mostly in major Canadian cities. These mainly Class I properties contain over 9.5 million square feet of leasable area. Class I refers to 19th- and early-20th-century light industrial buildings that have been converted to retail space. They usually feature exposed beams, interior brick and hardwood floors. The trust bought $400 million worth of properties in 2012. In 2013, it added $182.4 million more. Allied’s new buildings helped raise its revenue by 18.4% in the quarter ended December 31, 2013, to $81.4 million from $68.7 million a year earlier. Cash flow per unit rose 13.3%, to $0.51 from $0.45. The trust recently raised its monthly distribution by 3.7%, to $0.1175 from $0.1133. It now yields 4.1%. In July 2012, Allied entered into a joint venture with RioCan REIT to buy buildings…