Topic: How To Invest

Q: Pat: What is your recommendation on Automotive Properties REIT? It has a high 7.3% yield. Thanks.

Article Excerpt

A: Automotive Properties REIT, $11.02, symbol APR.UN on Toronto (Units outstanding: 26.1 million; Market cap: $288.2 million; www.automotivepropertiesreit.ca), is a real estate investment trust that owns 35 commercial properties across cities in Ontario, Saskatchewan, Alberta, B.C. and Quebec. The properties offer 1.4 million square feet of space for car dealerships. Its tenants sell a wide variety of vehicles. Those brands include Chrysler, Ford, General Motors, Kia, Nissan, Honda, Hyundai, Mazda, Mitsubishi, Toyota, Volkswagen, Acura, Audi, BMW, Porsche, Infiniti and Mercedes-Benz. The REIT first sold units to the public on July 22, 2015, at $10.00 a unit. The Dilawri Group, which owns 61 dealerships, is Automotive Properties’ largest tenant; it accounts for about 90% of the company’s rental income. As well, Dilawri owns 38% of the REIT. Since the initial public offering in 2015, Automotive Properties has purchased eight properties for a total of $125.5 million. These acquisitions have expanded its presence in Toronto, Montreal and Edmonton. They have also brought several of its luxury…

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