The Motley Fool

These 2 REITs Just Raised Their Distributions

Real estate investment trusts (REITs) are great sources of monthly income, and the best of the best tend to grow their distributions over time. Let’s take a closer look at two that just raised their rates by 2-5%, so you can determine if you should invest in one of them today.

Agellan Commercial Real Estate Investment Trust

Agellan Commercial Real Estate Invtmt TR (TSX:ACR.UN) has ownership interests in a portfolio of 44 income-producing office, industrial, and retail properties located in major urban markets in the United States and Canada that total approximately seven million square feet as of September 30.

In a press release on November 28, Agellan announced a 4.5% increase to its monthly distribution to $0.0675 per unit, equating to $0.81 per unit annually, which brings its yield up to about 6.8% at the time of this writing.

Foolish investors must also make the following two notes.

First, this increase is effective for Agellan’s January 2018 distribution, which is expected to be payable in February 2018.

Second, this is the first time the REIT has raised its distribution since it went public in 2013, and I think its strong financial performance and its rapidly growing property portfolio could allow 2018 to mark the starting point to an extensive streak of annual increases.

Allied Properties Real Estate Investment

Allied Properties Real Estate Investment (TSX:AP.UN) owns and manages a portfolio of 157 urban office properties located across major cities in Canada and the United States that total approximately 11.82 million square feet of gross leasable area as of September 30.

In a press release on December 6, Allied announced a 2% increase to its monthly distribution to $0.13 per unit, equating to $1.56 per unit annually, which brings its yield up to about 3.7% at the time of this writing.

It’s important to make the following two notes.

First, the first payment at this increased rate will be made on January 15 to unitholders of record on December 31.

Second, this hike puts Allied on track for 2018 to mark the seventh consecutive year in which it has raised its annual distribution, and I think its consistently strong financial performance will allow this streak to continue in 2019 and beyond.

Which should you buy today?

When including reinvested dividends, Agellan has returned more than 63% since I first recommended it on July 13, 2015, and Allied has returned more than 28% since I first recommended it on June 24, 2015. I think both are still great buys today, so take a closer look and consider adding one of them to your portfolio.

Just Released! 5 Stocks Under $49 (FREE REPORT)

Motley Fool Canada's market-beating team has just released a brand-new FREE report revealing 5 "dirt cheap" stocks that you can buy today for under $49 a share. Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune. Don't miss out! Simply click the link below to grab your free copy and discover all 5 of these stocks now.

Claim your FREE 5-stock report now!

Fool contributor Joseph Solitro has no position in any stocks mentioned.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss an important event.

Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

This is your chance to get in early on what could prove to be very special investment advice.

Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada.

I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. I understand I can unsubscribe from these updates at any time. Please read the Privacy Statement and Terms of Service for more information.