3 REITs I’d Buy With an Extra $5,000

Looking to generate income with a REIT? If so, Agellan Commercial Real Estate Invtmt TR (TSX:ACR.UN), InnVest Reit Trust Units (TSX:INN.UN), and Pure Industrial Real Estate Trust (TSX:AAR.UN) should be considered.

The Motley Fool

As wise investors know, dividend-paying stocks generate higher returns than non-dividend-paying stocks over the long term, and real estate investment trusts, or REITs, have some of the highest yields in the market today. With this in mind, let’s take a closer look at three REITs with yields up to 8.8% that you should consider buying today.

1. Agellan Commercial Real Estate Invtmt TR: 8.8% yield

Agellan Commercial Real Estate Invtmt TR (TSX:ACR.UN) owns 32 commercial properties in North America, totaling 4.7 million square feet of gross leasable area. It pays a monthly distribution of $0.06458 per share, or $0.775 per share annually, giving its stock an 8.8% yield at today’s levels. It is also worth noting that the company has maintained this monthly distribution since it went public in October 2013, but its increased amount of adjusted funds from operations, including 24% year-over-year growth to $20 million in fiscal 2014 and 11% year-over-year growth to $5.57 million in the first quarter of fiscal 2015, could allow for an increase in the very near future.

2. InnVest Reit Trust Units: 8.1% yield

InnVest Reit Trust Units (TSX:INN.UN) owns one of Canada’s largest hotel portfolios comprising of 109 hotel properties with approximately 15,000 guest rooms. It pays a monthly distribution of $0.0333 per share, or $0.3996 per share annually, which gives its stock an 8.1% yield at current levels. The company has maintained this annual distribution since fiscal 2012, and its consistent funds from operations, including an adjusted $44.62 million in fiscal 2012, $46.15 million in fiscal 2013 and $44.35 million in fiscal 2014, could allow it to continue doing so for the next several years.

3. Pure Industrial Real Estate Trust: 6.7% yield

Pure Industrial Real Estate Trust (TSX:AAR.UN) is one of the largest owners of industrial properties in North America with 173 properties totaling 17.4 million square feet of gross leasable area. It pays a monthly distribution of $0.026 per share, or $0.312 per share annually, giving its stock a 6.7% yield at today’s levels. Investors should also note that the company has maintained this annual rate since fiscal 2013, but its increased amount of funds from operations, including 23.4% year-over-year growth to $54.9 million in fiscal 2014 and 31.3% year-over-year growth to $16.8 million in the fiscal quarter of fiscal 2015, could allow for an increase in the second half of this year.

Could your portfolio use an income-generating REIT?

Agellan, InnVest, and Pure Industrial are three of the most attractive real estate investment trusts in the market. All Foolish investors should take a closer look and strongly consider establishing positions in one of them today.

Fool contributor Joseph Solitro has no position in any stocks mentioned.

More on Dividend Stocks

some REITs give investors exposure to commercial real estate
Dividend Stocks

A 7.6% Dividend Stock Paying Cash Every Month

This TSX stock offers reliable monthly income with strong underlying fundamentals.

Read more »

how to save money
Dividend Stocks

A Perfect April TFSA Stock With a 4.3% Monthly Payout

This stable rental housing giant delivers consistent monthly payouts with strong fundamentals.

Read more »

trends graph charts data over time
Dividend Stocks

This TSX Dividend Stock Is Down 20% and Built for the Long Haul

This dividend-paying TSX retail stock could be a long-term winner despite recent weakness.

Read more »

Canadian Dollars bills
Dividend Stocks

The Best High-Yield Dividend Stock to Buy Right Now for Unbeatable Income

Are you looking for reliable dividends? This high-yield Canadian stock could be worth considering right now.

Read more »

Piggy bank on a flying rocket
Dividend Stocks

2 Dividend Stocks That Belong in Every Income Investor’s Portfolio

These TSX stocks have increased their dividends annually for decades.

Read more »

woman checks off all the boxes
Dividend Stocks

TFSA Investors Take Note — The CRA Is Actively Watching for These Red Flags

Holding the iShares S&P/TSX 60 Index Fund (TSX:XIU) in your TFSA can spare you scrutiny for non-approved investments.

Read more »

Canadian dollars in a magnifying glass
Dividend Stocks

The Canadian Stocks I’d Consider Most If I Had $10,000 to Invest in 2026

If you’re planning to invest in 2026, these two TSX stocks stand out for all the right reasons.

Read more »

Dividend Stocks

This Monthly Paying TSX Stock Yields 8.1% and Deserves Your Attention

A strong yield and steady growth make this monthly dividend stock hard to ignore.

Read more »