If you’re interested in earning monthly dividend income from a real estate investment trust, or REIT, then you’ve come to the right place. I’ve scoured the market and compiled a list of three of the industry’s top investment options, so let’s take a closer look at each to determine which would fit best in your portfolio.
1. Dream Global REIT
Dream Global REIT (TSX:DRG.UN) owns 214 commercial properties in Germany, which total approximately 13.2 million square feet of gross leasable area. It pays a monthly distribution of $0.06667 per share, or $0.80 per share annually, giving its stock a 9.55% yield at today’s levels.
Investors should also note that Dream Global has maintained this rate since it first began paying a dividend in August 2011, and its ample funds from operations, including an adjusted $60.98 million in the first nine months of fiscal 2015, could allow it to continue to do so going forward.
2. InnVest Reit Trust Units
InnVest Reit Trust Units (TSX:INN.UN) has ownership interests in 111 hotels across Canada, which total over 15,000 rooms, and it has a 50% interest in Choice Hotels Canada Inc., one of the country’s largest franchisors of hotels. It pays a monthly distribution of $0.0333 per share, or $0.40 per share annually, giving its stock a 7.7% yield at today’s levels.
It is also important to note that InnVest has maintained this annual rate since 2012, but I think its increased amount of adjusted funds from operations, including 53.4% year-over-year growth to $55.46 million in the first nine months of fiscal 2015, could allow for a significant increase in 2016.
3. RioCan Real Estate Investment Trust
RioCan Real Estate Investment Trust (TSX:REI.UN) is Canada’s largest REIT. It has ownership interests in 354 retail properties containing approximately 78 million square feet, including 49 properties containing 13 million square feet in the United States. It pays a monthly distribution of $0.1175 per share, or $1.41 per share annually, giving its stock a 5.65% yield at today’s levels.
Investors must also note that RioCan has maintained this annual rate since 2013, but I think its increased amount of operating funds from operations, including 6.9% year-over-year growth to $414.6 million in the first nine months of fiscal 2015, could allow for a slight increase in 2016.
Is now the time for you to buy a REIT?
Dream Global, InnVest, and RioCan are three of the best investment options in the real estate investment trust industry today. All Foolish investors should take a closer look and strongly consider initiating positions in one of them before the end of the year.
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Fool contributor Joseph Solitro has no position in any stocks mentioned.