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

Real estate investment concept with person pointing on growth graph and coin stacking to get profit from property
Dividend Stocks

How to Use a TFSA to Bring in $500 a Month Completely Tax-Free

These Canadian dividend stocks distribute dividends on a monthly basis and offer attractive yields for reliable tax-free income.

Read more »

coins jump into piggy bank
Dividend Stocks

TFSA Income: How I’d Structure $14,000 for Consistent Payouts

A $14,000 TFSA won’t make you rich overnight, but it can kickstart a simple compounding engine with real staying power.

Read more »

drinker sniffs wine in a glass
Dividend Stocks

Use a TFSA to Make $500 in Monthly Tax-Free Income

Discover how to maximize your TFSA for lucrative passive income. Learn strategies for disciplined investing today.

Read more »

diversification is an important part of building a stable portfolio
Retirement

What TFSA Millionaires Understand That Most Canadian Investors Do Not

TFSA millionaires build wealth through patience, diversification, and quality holdings like CNR, XIC, and TD rather than chasing quick returns.

Read more »

A airplane sits on a runway.
Dividend Stocks

A Strong TFSA Stock Offering a 2.2% Yield and Monthly Paycheques

Exchange Income Corp. (TSX:EIF) is a monthly dividend payer that has been soaring in recent years.

Read more »

workers walk through an office building
Dividend Stocks

This Dividend Stock Has Fallen 55% and I’d Still Back It as a Long-Term Hold

This Canadian dividend stock has taken a beating over the last year, yet its turnaround strategy and double-digit dividend yield…

Read more »

gift is bigger than the other
Dividend Stocks

BCE or Telus: Which TSX Dividend Stock Is a Better Buy Now?

Let’s compare the financial performance, growth prospects, and dividend outlook of BCE and Telus to determine which telecom stock is…

Read more »

woman looks ahead of her over water
Dividend Stocks

The Dividend Stock I’d Pick Over Enbridge Stock, and Why I Keep Coming Back

Find out the impact of recent changes on Enbridge's dividend yield and stock price, and what it means for investors…

Read more »