Real estate is one of the most popular investments in the world, but buying and managing a rental property is simply not for everyone, especially if you’re interested in owning industrial real estate. Fortunately, there are real estate investment trusts (REITs) that can give you the benefits of owning industrial properties without the hassles that come with being a landlord.
REITs are also very attractive ways to invest in real estate because you can invest as little or as much as you want, and it maintains your liquidity since you can sell a stock in a few seconds compared with a property that could take weeks, months, or even years to sell.
With all of this in mind, let’s take a look at four industrial REITs with high and safe yields of 6-9% that you could buy right now.
1. Granite Real Estate Investment Trust
Granite Real Estate Investment Trust (TSX: GRT.UN)(NYSE:GRP) owns and manages a portfolio of 96 industrial properties, comprising of approximately 30.4 million square feet located across Canada, the United States, Austria, Germany, the Czech Republic, the Netherlands, Spain, the U.K., and Poland.
It pays a monthly distribution of $0.203 per share, or $2.44 per share annually, giving its stock a yield of about 6.2% at today’s levels. It has also raised its annual distribution for five consecutive years, and its 5.7% hike earlier this year has it on pace for 2016 to mark the sixth consecutive year with an increase.
2. Pure Industrial Real Estate Trust
Pure Industrial Real Estate Trust (TSX:AAR.UN) owns and manages a portfolio of 167 industrial properties, comprising of approximately 17.8 million square feet located across Canada and the United States.
It pays a monthly distribution of $0.026 per share, or $0.312 per share annually, giving its stock a yield of about 6% at today’s levels. It has maintained this annual rate since 2013, and its consistent generation of adjusted funds from operations could allow it to continue to do so for many years to come.
3. Dream Industrial Real Estate Investment Trust
Dream Industrial Real Estate Invest Trst (TSX: DIR.UN) is Canada’s largest industrial REIT. It owns and manages a portfolio of 219 industrial properties, comprising of approximately 17 million square feet located across the country.
It pays a monthly distribution of $0.05833 per share, or $0.70 per share annually, giving its stock a yield of about 7.8% at today’s levels. It has maintained this annual rate since 2014, and its consistent generation of adjusted funds from operations could allow it to continue to do so going forward.
4. Summit Industrial Income REIT
Summit Industrial Income REIT (TSX: SMU.UN) owns and manages a portfolio of 49 industrial properties, comprising of approximately 4.6 million square feet located across Canada.
It pays a monthly distribution of $0.042 per share, or $0.504 per share annually, giving its stock a yield of about 8.1% at today’s levels. It has also raised its regular annual distribution for two consecutive years, and its strong growth of adjusted funds from operations could allow it to continue this streak in 2016 by announcing a slight hike before the end of the year.
