Real Estate Investment Trusts or REITs can be some of the best investment options in the market scenario of declining bond yields. If you are expecting a declining bond market and looking forward to taking a position in REIT stocks, you are in the right place. Here are what I think could be three of the best REITs available in the Canadian market.
Dream Industrial REIT
Dream Industrial REIT (TSX: DIR.UN) is an open-ended, unincorporated real estate investment trust. It operates more than 16.2 million square feet of leasable area in over 213 light industrial properties across Canada. The portfolio of Dream Industrial REIT comprises industrial properties situated in some of the important markets across the United States and Canada.
Recently the company has announced a private placement of debentures (unsecured) worth $200 million. Moreover, the company has announced its December 2023 monthly distribution of 5.83%, which is payable in January 2024 to unit holders.
SmartCentres REIT
SmartCentres REIT (TSX: SRU.UN) is a Canada-based integrated residential and commercial REIT along with more than 174 properties strategically situated across Canada. It is primarily into the development of complete and mixed-use retail properties through its sub-brand: SmartLiving.
The company has recently announced a dividend payout for December 2023 at $0.15417/unit, which is payable in January 2024 to its unit holders. Also as per its recently published third quarter results, SmartCentres REIT has successfully executed 182,682 square feet along with 84.2% of its expiring leases.
Canadian Apartment Properties REIT
Canadian Apartment Properties REIT (TSX: CAR.UN) is a real estate investment trust that is primarily focused on the acquisition and leasing of rental properties situated in urban regions across Canada.
Its portfolio is primarily composed of townhouses and apartments situated close to public amenities. A major chunk of Canadian Apartment Properties REIT derives a large part of its revenue from rental income generated from long-term tenants in high-quality assets.
Recently, Canadian Apartment Properties REIT has executed two strategic acquisitions with a combined total US$90.5 million. Also, it has disposed of two non-core buildings for an amount totaling US$10.3 million. For those seeking long-term value, this is among the best REITs in terms of capital allocation worth considering, in my view.
