Our Three Top REIT Recommendations

Article Excerpt

Real Estate Investment Trusts (REITs) are down from last year’s highs, largely due to fears that slowing consumer spending will hurt cash flows. However, top-quality REITs continue to have high occupancy rates and rising lease rates. As well, lower interest rates will help REITs fund their expansion plans. We still advise against overindulging in REITs. But if you stick with the highest quality, like the REITs we recommend on this page, you should make attractive long-term returns with relatively low risk. RIOCAN REAL ESTATE INVESTMENT TRUST $21.43 (Toronto symbol REI.UN; SI Rating: Average) is Canada’s largest REIT. RioCan has ownership interests in a portfolio of 214 retail properties across Canada, including 14 under development. These properties contain over 55 million square feet of leasable area. Portfolio occupancy stands at 97.6%. RioCan’s revenue in the three months ended December 31, 2007 was $165.2 million, up 9.3% from $151.2 million a year earlier. Cash flow per unit rose 7.7%, to $0.42 from $0.39. RioCan’s annual…