Over the last few weeks, many real estate stocks in Canada have been selling off. This is creating several opportunities for long-term investors to buy the best REITs now while they trade undervalued.
There are several reasons why real estate stocks are struggling. First, rapidly rising interest rates are going to make debt and growth more expensive to fund. In addition, though, uncertainty over potential government regulation, especially in the residential industry, is something investors are worried about.
Even with these concerns, though, there are several great REITs to buy now, especially if you’re willing to commit to these investments for the long haul. Here are two of the best to consider today.
One of the best residential REITs to buy now
Real estate is well-known to be an exceptional industry to invest in. But there are many different real estate assets to consider. Without a doubt, the best REITs to buy for the long haul any time, but especially now in this market environment, are high-quality residential REITs like Canadian Apartment Properties REIT (TSX: CAR.UN).
CAPREIT is the largest residential REIT in Canada, offering investors exposure to more than 65,000 sites and suites. Plus, not only does it offer exposure to so many properties, but its portfolio is well-diversified across Canada and it even owns assets in Europe.
There are several reasons to consider an investment like CAPREIT and why it’s one of the best Canadian REITs to buy now.
First off, residential real estate, in general, offers investors tonnes of opportunities for long-term capital gains. And CAPREIT has consistently proven to expand its portfolio and create value for unitholders. Plus, in addition to the capital gains growth, CAPREIT also offers consistent passive income growth.
It’s also worth pointing out that an investment in a high-quality residential real estate stock is not just about growth. These assets are highly defensive, meaning the REIT also offers investors protection of their capital.
And, of course, because it’s a simple, low-cost, and low-risk way to gain exposure to residential real estate, it’s an ideal investment.
So while the REIT trades at the bottom of its 52-week range and at a significant discount to its net asset value, it’s one of the best Canadian REITs you can buy while it’s still cheap.
A top REIT for long-term growth trading at an attractive discount
Another excellent sub-sector to find some of the best real estate investments for the long haul is in industrials. That’s why Granite REIT (TSX: GRT.UN) is one of the best REITs to buy now.
In recent years industrial REITs have seen demand for their warehouse space grow rapidly due in large part to the growth of e-commerce. So already, Granite is a high-quality REIT to own for the long haul. But it also has significant short-term potential as nearly 50% of its portfolio will see the leases turnover in the next three years, at a time when the surging demand continues to push rent prices higher.
So Granite has a tonne of potential to see organic growth from its portfolio, in addition to all the acquisition potential it offers.
Therefore, considering it’s also sold off in recent months, it offers investors tonnes of value today. So if you’re looking for some of the best REITs to buy now, Granite is one that offers investors an incredible opportunity.
