There is still worry about a Canada housing market crash. Many investors fear that even investing in real estate investment trusts (REIT) can get them into trouble. However, there is a way to invest in REITs without the worry of a crash. So let’s take a look at three solid options to consider for any portfolio.
The e-commerce industry is booming, and WPT Industrial REIT (TSX:WIR.UN) has been a prime benefactor. Revenue is up 45% year over year as of the latest earnings report, with the company sitting at around 97% occupancy rate. Meanwhile, the light industrial properties company continues to expand, with now 109 properties in its portfolio.
If there is a Canada housing market crash, you won’t have to worry about WPT Industrial for a few reasons. First, its properties are mainly in the United States. Second, it’s not in housing! Light industrial properties are low maintenance, only relying on what’s shipped and stored from these locations. With e-commerce only set to grow higher, it’s more likely you’ll see growth over dips. So you can rest easy knowing your dividend yield of 4.53% is safe and secure.
Another REIT unrelated to housing is NorthWest Healthcare Properties REIT (TSX:NWH.UN). This company owns a diverse range of healthcare properties around the world. So not only do you get international diversity and won’t have to worry about a Canada housing market crash, you’ll also rest easy knowing it’s in the healthcare and not housing sector.
Healthcare continues to see major investment, so NorthWest is a reliable and safe company to hold onto for decades. I say that with confidence as the company’s recent lease agreements averaged 14.5 years! Revenue continues to come in strong from these rent agreements. So investors can look forward to many years ahead enjoying the company’s 6.09% dividend yield.
Finally, Brookfield Renewable Energy Partners LP (TSX:BEP.UN)(NYSE:BEP) offers investors a way to get in on growth and dividends. The renewable energy company owns clean energy assets around the world. So again, you have a diverse range of products in countries besides Canada, avoiding a Canada housing market crash completely.
But there is a lot of growth ahead for Brookfield Energy. The company owns 19,000 megawatts of assets, and this is all without the heavy investment coming its way. Analysts expect about $10 trillion to be poured into clean energy projects around the world in the next decade. In that time, Brookfield will be able to expand its footprint even further.
So not only do you get a dividend yield of 2.95% as of writing, you can also look forward to share growth. Brookfield has already seen share growth of 51% in the last year, and 598% in the last decade for a compound annual growth rate (CAGR) of 21.42%!
Just because you want to get in on REITs doesn’t mean you have to worry about a Canada housing market crash. Instead, invest in areas that won’t be affected. This includes diverse properties that span the globe. In the case of each of these REITs, you get exactly that.
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 Amy Legate-Wolfe owns shares of Brookfield Renewable Partners and NORTHWEST HEALTHCARE PPTYS REIT UNITS. The Motley Fool recommends NORTHWEST HEALTHCARE PPTYS REIT UNITS.