Income Investors: 3 Super REITs That Yield up to 8.3%!

Canadian income investors may want to target top REITs like Northwest Healthcare REIT (TSX:NWH.UN) and others in early April.

Pixelated acronym REIT made from cubes, mosaic pattern

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Canadians who are on the hunt for steady passive income should feel good about targeting real estate investment trusts (REITs). These are companies that own, operate, and/or finance income-producing real estate. This can be across a variety of sectors, including residential, commercial, and more specialized spaces like health care or specific retail. Today, I want to look at three top REITs that are perfect for income investors in the beginning of April. Let’s jump in.

Here’s why income investors should snatch up this discounted REIT today

SmartCentres REIT (TSX:SRU.UN) is a Toronto-based REIT that features a well-diversified portfolio, making up more than 150 properties in communities across Canada. Shares of this REIT have climbed 3.3% in 2022 as of close on April 1. The stock has jumped 22% in the year-over-year period.

The REIT released its fourth-quarter and full-year 2021 results on February 15, 2022. Net income rose to $987 million compared to $89.9 million in the previous year. Funds from operations (FFO) jumped 3.3% year over year to $380 million. Meanwhile, cash flows provided by operating activities climbed 25% from the prior year to $75.6 million.

Shares of this REIT currently possess a very favourable price-to-earnings (P/E) ratio of 6.9. Income investors can count on a monthly distribution of $0.154 per share. That represents a strong 5.6% yield.

Don’t sleep on this top defensive REIT in 2022

Northwest Healthcare REIT (TSX:NWH.UN) is another Toronto-based REIT. This REIT offers income investors exposure to a global portfolio of high-quality healthcare real estate. The stock has jumped 1.6% so far this year. Its shares are up 7.3% from the same period in 2021.

Canadians got to see Northwest’s final batch of 2021 earnings on March 15. In Q4 2021, revenue was mostly flat in the year-over-year period at $95.6 million. Meanwhile, adjusted funds from operations (AFFO) for the full year rose 11% on a constant-currency basis to $0.87 per unit. It also posted strong portfolio occupancy of 97%. Total assets under management (AUM) jumped 17% to $9.2 billion. Northwest has proven to be a fantastic defensive option for income investors in the face of the COVID-19 pandemic.

This stock last had an attractive P/E ratio of 7.9. It currently pays out a monthly dividend of $0.067 per share, which represents a 5.7% yield.

One more REIT that should alert income investors

True North REIT (TSX:TNT.UN) is the third and final REIT I’d look to snatch up in early April. This Toronto-based REIT offers exposure to quality commercial properties throughout Canada. Its shares have dropped 4.3% in the year-to-date period. The stock is still up 3.1% from 2021.

It unveiled its Q4 and full-year 2021 earnings on March 2, 2022. Revenue, net operating income (NOI), and portfolio occupancy were stable in the year-over-year period. Shares of this REIT possess a favourable P/E ratio of 12. True North REIT last paid out a monthly dividend of $0.05 per share. This represents a monster 8.3% yield.

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 Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool recommends NORTHWEST HEALTHCARE PPTYS REIT UNITS and Smart REIT.

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