Real estate is one of the world’s most popular investments, but buying and managing a rental property is simply not for everyone. Fortunately, there are real estate investment trusts (REITs) that offer the benefits of owning rental properties, such as monthly income, without the hassles that come with purchasing a property or being a landlord. With all of this in mind, let’s take a look at three REITs with yields up to 7.1% that you could add to your portfolio today.
Dream Global REIT (TSX:DRG.UN) is one of the largest owners and operators of commercial real estate in Europe. As of September 30, its portfolio consisted of 282 office, industrial, and mixed-use properties, which are located in Germany, Austria, Belgium, and the Netherlands and total about 20.37 million square feet of gross leasable area.
Dream Global pays a monthly distribution of $0.06667 per unit, representing $0.80 per unit annually, which gives it a yield of about 6.55% at the time of this writing.
Foolish investors should note that Dream Global has maintained its current annual distribution rate since it went public in August 2011, and I think its very strong financial performance, including its 15.5% year-over-year increase in adjusted funds from operations (AFFO) to $0.67 per unit in the first nine months of 2017, will allow it to continue to do so for the foreseeable future.
NorthWest Health Prop Real Est Inv Trust (TSX:NWH.UN) is one of the world’s largest owners and managers of healthcare-related real estate, including full-service medical buildings and a mix of professional office, laboratory, clinical, and pharmaceutical space. It currently has ownership interests in 144 income-producing properties that total approximately 9.7 million square feet of gross leasable area and are located throughout major markets in Canada, Brazil, Germany, Australia, and New Zealand.
NorthWest pays a monthly distribution of $0.06667 per unit, equating to $0.80 per unit annually, giving it a yield of about 7.1% at the time of this writing.
Investors should note that NorthWest has maintained its current annual distribution rate since it went public in March 2010, and I think its consistently strong AFFO generation, including $0.83 per diluted unit in 2016 and $0.68 per diluted unit in the first nine months of 2017, will allow it to continue to do so for many years to come.
InterRent Real Estate Investment Trust (TSX:IIP.UN) is one of the largest residential landlords in Ontario and Quebec. It owns and manages a portfolio of multi-family residential properties in mid-sized population markets across the two provinces with a total of 8,065 suites, as of September 30.
InterRent currently pays a monthly distribution of $0.0225 per unit, representing $0.27 per unit annually, which gives it a yield of about 2.9% at the time of this writing.
Foolish investors must note that 2017 marks the sixth consecutive year in which InterRent has raised its annual distribution, and that its 11.1% hike last month has it on track for 2018 to mark the seventh consecutive year with an increase, making it one of the best distribution-growth plays in the REIT industry today.
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Fool contributor Joseph Solitro has no position in any stocks mentioned. NorthWest Health Prop Real Est Inv Trust is a recommendation of Stock Advisor Canada. Dream Global is a recommendation of Dividend Investor Canada.