TFSAs remain incredible savings vehicles to help investors grow their wealth thanks to their preferred tax terms, which ultimately allow the investment to grow through the magic of compounding. Among the myriad of investment options to place into a TFSA, one of the most popular, lucrative areas of investment continues to be the growing field of REIT investments.
Here are two interesting REITs that are worthy of inclusion in nearly any portfolio.
Meet Inovalis
One REIT that has gained in popularity among investors recently is Inovalis (TSXINO.UN). Inovalis, like many other REITs on the market, doesn’t manage any properties in Canada but instead has a diversified portfolio of over one-dozen properties located in France and Germany. In total, the properties comprise 1.3 million square feet of space that boast a 93% occupancy and an average lease term of over four years.
The properties are predominately classified as office space, and Inovalis has targeted the specific major metro markets in those countries such as Paris, Stuttgart, and Frankfurt. Adding to that appeal is that all properties are ideally situated within close proximity to high-traffic and in-demand areas for offices, shopping, and transit. With many investors seeing the white-hot market in Canada beginning to cool over the next year, a little diversification and exposure to European markets could be a worthwhile option to consider.
Adding to that global appeal, Inovalis also offers investors a very healthy dividend. The current distribution amounts to an incredible 8.23% yield, handily making it one of the best returns on the market at the moment.
Another option closer to home
If you prefer an investment that is still within Canada, another REIT to consider is RioCan (TSX: REI.UN). RioCan is one of the largest REITs in the country, with a massive portfolio of investments that are scattered across the country. The properties the company primarily owns and operates are commercial and retail in nature, but that mix is slated to change over the next few years thanks to a new concept that the company has dubbed RioCan Living.
With home prices continuing to surge into unaffordable territory for many younger first-time buyers, there exists an opportunity to provide affordable housing in the urban, centrally located areas that are close to the shopping, restaurants, and amenities people want in addition to short commute times. To meet that need and to address the declining foot traffic across a variety of brick-and-mortar properties, RioCan is redeveloping properties into mixed-use retail and residential sites that can solve both issues.
The first properties are set to open later this year in Toronto, and RioCan has several other sites in major metro areas across the country in various stages of development.
In terms of its distribution, RioCan offers an attractive monthly payout that currently has a yield of 5.74%.
