There’s no question that real estate is an excellent industry to invest in and a sector where you can find many of the best stocks to buy now.
But in addition to your traditional real estate stocks that own apartment buildings, plazas, malls, and office buildings, there are other, lesser-known investments you can make in the popular industry.
So if you’ve got cash that you’re looking to invest and you want to find the best stocks to buy now, here are two unique real estate stocks to consider adding to your portfolio this week.
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One of the best real estate stocks to buy for long-term growth
One lesser-known real estate stock, but also one of the best long-term growth stocks to buy now, is StorageVault Canada (TSX: SVI). As its name suggests, the stock offers Canadians exposure to self-storage assets. In fact, it’s the only stock in Canada to do so.
Self-storage properties are wonderful long-term assets to own because they consistently provide cash flow while requiring little capital expenditures and maintenance. This makes these assets cash cows. And given all the acquisitions StorageVault has done in recent years, it’s no surprise it’s one of the best growth stocks to buy.
Today it owns 194 properties across Canada, totalling over 95,000 units and making up more than 10 million square feet of space. In addition, StorageVault has another 1 million square feet of expansion potential already within these facilities, representing another 10% growth for its portfolio.
So with the Canadian self-storage market estimated to be roughly 90 million square feet, StorageVault has more than 10% market share. And with the stock proving for years now that it can grow organically by acquisition and continue to increase its cash flow, it’s certainly one of the best real estate stocks to buy for your portfolio.
A recovery stock offering an attractive yield
If you’re looking for a cheaper stock or one that offers a yield, American Hotel Income Properties REIT (TSX: HOT.UN) is a stock you’ll want to consider.
While most companies have recovered from the pandemic by now, the REIT is one of the best recovery stocks to buy.
It has started to see its occupancy pick up compared to the first few quarters of the pandemic. At the worst point of the pandemic, the REIT’s occupancy was just 34%, and only 42% of what it was in 2019.
In recent quarters the REIT has been reporting occupancy numbers that are around 85% of what it was doing pre-pandemic. So it’s seen a strong increase, and it’s also improved its revenue per available room. However, there is certainly still room for the REIT to recover to get back to 2019 levels of capacity, and then, of course, continue growing from there.
Nevertheless, the business is well on its way to recovering, and the cash flow has been attractive enough for management to reinstate the distribution. And that distribution currently provides investors with a yield that’s north of 5.6%.
So, considering all the recovery potential American Hotel Income Properties still has and the attractive distribution it already pays to investors, it’s one of the best real estate stocks to buy now.
