If you’re interested in generating monthly income by investing in real estate investment trusts but can’t figure out which one to buy today, then this article is for you. I’ve scoured the industry and selected three high-quality options with high and safe yields of 4-6%, so let’s take a quick look at each to determine which would be the best fit for your portfolio.
1. Plaza Retail REIT
Plaza Retail REIT (TSX:PLZ.UN) is one of the largest developers, owners, and operators of retail properties in Canada with 303 properties in eight provinces that total approximately 7.1 million square feet. It pays a monthly distribution of $0.02167 per share, or $0.26 per share annually, which gives its stock a yield of about 5.6% at today’s levels.
It is also very important for investors to note that Plaza Retail REIT has raised its annual distribution for 12 consecutive years, and its 4% hike in November 2015, which was effective for its January 2016 payment, has it on pace for 2016 to mark the 13th consecutive year with an increase.
2. Smart REIT
Smart REIT (TSX:SRU.UN) is one of the largest owners and operators of shopping centres in Canada with 139 properties in operation and 11 under development that total over 31 million square feet. It pays a monthly distribution of $0.1375 per share, or $1.65 per share annually, which gives its stock a yield of about 5.1% at today’s levels.
Investors must also note that Smart REIT has raised its annual distribution for two consecutive years, and its 3.1% hike in October 2015 has it on pace for 2016 to mark the third consecutive year with an increase.
3. Brookfield Canada Office Properties
Brookfield Canada Office Properties (TSX:BOX.UN)(NYSE:BOXC) is one of the leading owners and operators of office properties in Canada with 27 properties that total approximately 21 million square feet in the downtown cores of Toronto, Calgary, Ottawa, and Vancouver, and it has a site under development in Calgary. It pays a monthly distribution of $0.1092 per share, or $1.31 per share annually, which gives its stock a yield of about 4.8% at today’s levels.
It is also very important for investors to note that Brookfield Canada Office Properties has raised its annual distribution for five consecutive years, and its 7.2% hike on January 25 has it on pace for 2016 to mark the sixth consecutive year with an increase.
Which of these REITs belongs in your portfolio?
Plaza Retail REIT, Smart REIT, and Brookfield Canada Office Properties are three of the best investment options in the real estate industry today. Foolish investors should take a closer look and strongly consider beginning to scale in to long-term positions in one of them.
