Would you believe that one of the stocks with the best value in the market today is a REIT stock? Morguard (TSX:MRT), a close-ended real estate investment trust can be your main source of passive income. The REIT’s structure is unique compared with a typical REIT.
Morguard uses internally generated cash flows to make cunning investments. The REIT adheres to its mandate to accumulate high-quality real estate assets. The result is a diversified portfolio that produced the best returns over the last 10 years.
Morguard is operating real estate properties worth $3.0 billion, and its total 49 assets are located in six provinces across Canada. The real estate portfolio primarily includes 28 well-located, high-quality office and industrial properties.
The 21 retail properties are situated in major urban centres. The tenants are dominant regional enclosed shopping centres, neighbourhood and community shopping centres, and a small group of industrial properties.
Morguard actively operates and manages its portfolio to ensure the generation of stable, increasing cash flow and dependable returns for shareholders. This REIT stock also offers the potential for long-term capital appreciation.
This $710.9 million REIT is a class of its own. The occupancy rate is a high 93%, excluding other properties not available for occupancy. When the redevelopment and re-merchandising of these properties are completed, the occupancy rate could increase to 98%.
The REIT will realize and create more value through revitalization, re-merchandising and transit-oriented strategy. Heritage Place in the heart of Ottawa now offers long-term revenue generation potential.
Morguard successfully negotiated with the City of Ottawa to incorporate an LRT station entrance into the main lobby of the 218,000 square foot Class A Office tower.
Heritage Place is positioned as the primary choice for government and private sector office tenancies in downtown Ottawa.
Expect Morguard to continue to leverage its asset management and development expertise. The REIT’s real estate portfolio will be further strengthened with more leasing initiatives and a greater focus on redevelopment projects. Generating solid income is the hallmark of Morguard.
Investors are buying Morguard because of its core strength in real estate. With that strength, you know this REIT will continue on its broad and efficient real estate platform.
The platform will serve as the foundation to enhance the quality and value of Morguard’s real estate assets under management.
Furthermore, Morguard’s geographic diversification is the key to income stability and income growth. It counters or reduces the REIT’s vulnerability to economic instabilities. Morguard’s proven management platform is the reason for its consistent financial performance.
Revitalize your portfolio
Morguard’s current dividend yield is 8.16%. Let’s assume you have a TFSA but has yet to use the total contribution room of $63,500. If you invest in Morguard and the yield remains intact, your investment would compound and double in 8.8 years.
In case you’re losing patience at the turtle’s pace growth of your investments, consider Morguard. You can revitalize your portfolio with this top-performing REIT stock.
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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
Fool contributor Christopher Liew has no position in any of the stocks mentioned.