Are you looking to invest in real estate this January? With real estate investment trusts (REITs), you don’t have to wait for years to save money. REITs are trusts that own, operate, and finance income-generating properties, offering a great alternative to traditional real estate investments.
Notably, these trusts are set up to pay out a vast majority of their net income to investors in the form of dividends. Thus, as far as dividend stocks are concerned, many of the companies on this list are among the best options in the market.
Here are the three top REITs listed on the TSX that could be worth considering.
SmartCentres REIT
SmartCentres REIT (TSX: SRU.UN) is a fully integrated REIT dealing with both commercial and residential properties. It owns around 174 properties in different communities strategically located across Canada.
The company is working on creating well-planned communities that have a mix of stores and homes. They’re doing this on their existing retail properties, and it’s all happening under their own residential brand: SmartLiving.
Recently, the REIT has disclosed that SmartCentres has declared a distribution for January 2024 at $0.15417 per unit, equivalent to $1.85 per unit for the entire year. If you’re a unitholder of the company, you can receive this distribution on February 15, 2024, but you need to be officially recorded as a unit holder by January 31, 2024.
Canadian Apartment Properties REIT
Canadian Apartment Properties REIT (TSX: CAR.UN) is a big player in rental housing space in Canada. As of September 2023, it owns a whopping 64,500 residential properties, including apartments, houses, and more, valued at US$16.5 billion.
As per this company’s latest report in December 2023, it has added more rental homes in Canada worth US$90.5 million. Almost all of the company’s earnings come from renting out its properties to tenants. Most of this income is derived from the Greater Montreal region and Greater Toronto, where the majority of CAPREIT’s housing units are located.
These new additions make it likely that CAPREIT will bring in solid returns for investors in 2024 and beyond. As far as residential REITs are concerned, this company remains my top pick.
Dream Industrial REIT
Dream Industrial REIT (TSX: DIR.UN) is one of the biggest REITs in Canada. It owns 321 industrial properties in Europe and the U.S., covering a massive 70.6 million square feet for leasing.
The main goal of Dream Industrial REIT is to generate stable returns and cash flow for investors owning stakes in the company. In October 2023, it announced a dividend payout of US$0.058 per share to its unitholders, making the total US$0.70 for the whole year. Notably, the REIT’s dividend yield has gone up to 5.7%. Thus, for those seeking a relatively higher-yielding option in this space, Dream Industrial is a top pick of mine.
This is mainly because of its recently published third-quarter FY23 report. In that quarter, the trust made 10.4% more revenue from operations and 17.4% more from renting out properties. Dream Industrial’s ongoing financial strength is highlighted by significant growth in its total assets to US$7.9 billion, driven by a series of strategic asset acquisitions and increased value in investment properties.
