The trade war between the U.S. and China has gone too far, which could lead to a global recession. Investors are freaking out while scrambling to look for defensive investments. If you’re sick and tired of the trade disputes and a looming recession, own the best assets to dispel all uncertainties.
REIT stocks have a proven history of enduring a recession or slowing economic growth. Morguard (TSX:MRT.UN), True North (TSX:TNT.UN), and Slate Office (TSX:SOT.UN) will relieve you of those worries.
Expert asset manager
At the price of $11.19 at writing, you can be a quasi-landlord to Morguard’s tenants in 21 retail properties and 28 high-quality office and industrial properties worth $3.0 billion total. This $679.3 million REIT also yields a hefty 8.6%.
The retail properties are mostly located in major urban centres. Morguard’s office and industrial properties are well-situated in six provinces across Canada.
In order to guarantee sustainable, increasing cash flow and dependable returns, Morguard actively operates and manages its real estate portfolio. The high occupancy rate of 93% could rise to 100% when the redevelopment of some properties is completed.
Morguard can maintain its high occupancy rate because of its and re-merchandising and revitalization strategy. Your earnings from this REIT will be more than what you’ll earn from an average stock or bond.
Strongest tenant profiles
With True North, there’s little chance of your monthly budget being disrupted. The stock is among the highest dividend payers (8.55% yield) on the TSX. This $395.45 million diversified REIT has the most active tenant profiles compared with other REITs.
True North currently owns and operates a portfolio of 47 prime commercial properties. The Federal Government of Canada occupies 95% of True North’s 107,100-square-foot office property at 360 Laurier Avenue West, Ottawa, Ontario. Alberta Health Services is one of the top 10 tenants as well.
True North added eight more office properties to its growing real estate portfolio in the first quarter of 2019. As of the same quarter, the occupancy rate stands at 96% with an average lease term is 8.4 years.
Prime office spaces
For Slate Office, it’s all about reliable dividend income and wealth generation. This REIT stock $393 million REIT could boost your portfolio with its 7.0% yield.
Slate Office’s market capitalization as of August 31, 2019, is $393 million. To date, real estate portfolio consists of 39 properties located across Canada’s major population centres. Slate Office has two prime assets in downtown Chicago, Illinois, U.S.A.
This REIT focuses on maximizing value through strategic acquisitions. The acquisitions will deliver organic rental and occupancy growth. Slate Office sold non-core properties recently to preserve cash flow and toughen its balance sheet.
Slate Office is far more superior to bonds and other assets when it comes to providing a steady income stream.
Enough of the trade war
The three REITs can shield your investment against the trade war while you earn from the rich dividends. You receive passive income while the U.S. and China continue with their trade barbs.
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Fool contributor Christopher Liew has no position in any of the stocks mentioned.