Real estate is one of the best industries to invest in for the long haul, so it makes sense that investors want exposure to real estate in their portfolios. And luckily for investors, there are plenty of high-quality Canadian REITs to buy today.
There are REITs of all sizes, serving different geographic areas and even different subsectors of the real estate industry. If you’re looking to buy some of the best Canadian REITs, here are five of the top picks to consider today.
One of the best Canadian REITs to buy for growth
You can find high-growth REITs in any subsector of real estate, but there’s no question that one of the best is residential. And considering InterRent REIT’s (TSX:IIP.UN) long track record of execution, plus how cheap it’s gotten lately, it’s unquestionably one of the best Canadian REITs to buy now.
The fund owns properties in Ontario, Quebec, and B.C. and is focused on constantly expanding its portfolio and investing in adding value for unitholders.
So, although residential real estate has been strong in Canada over the last decade, especially in the regions where InterRent operates, it’s still put up such impressive numbers that it’s clear the fund is one of the best Canadian REITs you can buy.
In those 10 years, investors have earned a total return of roughly 400% — almost certainly more than you can make anywhere else investing in residential real estate.
Two more top REITs to buy for growth
In addition to InterRent, another high-quality residential REIT to buy and hold long term is Canadian Apartment Properties REIT (TSX:CAR.UN). CAPREIT doesn’t quite offer as much growth potential as InterRent. However, it will be a more defensive and less-volatile investment.
The REIT is also quite a bit larger and has assets that span all across Canada, giving it more diversification. If you’re looking for high-quality growth from residential real estate but want a safer investment, CAPREIT is one of the best Canadian REITs to buy now.
In addition, industrial REITs offer investors tonnes of growth potential. And while there are several high-quality industrial REITs to consider, one of the best that I’d recommend investors check out has to be Granite REIT.
One of the best Canadian REITs to buy for passive income
If you’re looking to buy Canadian REITs more for the passive income they provide, one of the best to buy now is CT REIT (TSX:CRT.UN).
CT REIT is a Dividend Aristocrat, as it’s one of the safest dividend stocks you can buy in the real estate industry, and it’s constantly increasing its cash flow.
Part of the reason why CT REIT is such a high-quality investment is that Canadian Tire is a major shareholder. In addition, Canadian Tire is also the REIT’s largest tenant accounting for roughly 90% of its revenue.
Therefore, CT REIT has been incredibly robust, including through the pandemic when many other retail REITs struggled. And considering it’s a REIT that will continue to increase the passive income it pays to investors, plus the fact that its distribution offers a yield of more than 4.5%, there’s no question that it’s one of the best Canadian REITs to buy today.
A top real estate stock with recovery potential
Lastly, if you’re looking for a recovery stock trading undervalued, offering an attractive yield as well as capital gains potential, American Hotel Income Properties REIT (TSX:HOT.UN) is one to consider.
The REIT owns several premium-branded hotels across the United States. So, as travel pics back up, both from travellers and from businesses, the stock offers a tonne of potential to recover, which is why it’s one of the best Canadian REITs to buy now.
It’s already seen a significant recovery, especially from the massive impacts the shutdowns caused. However, there is still significant room to improve back to 2019 levels of capacity, thanks to all the pent-up demand from consumers.
While the REIT trades cheap and offers a yield of more than 5.8%, it’s certainly one you’ll want to check out.
