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Despite rising COVID-19 cases and reimposed lockdowns, the Canadian real estate sector continues to register record high home prices.
Reports say that while sales in the sector may be slowing down, home prices are still surging at a massive rate. Latest figures from a Canadian Real Estate Association (CREA) study show that the country’s benchmark home price in April surged by a whopping C$ 18,000 in a month.
On the other hand, the S&P/TSX Capped Real Estate index grew 5.75 per cent quarter-to-date (QTD), while the S&P/TSX REIT index expanded by about 7.05 per cent in the same period.
Amid rising home prices, let’s look into five real estate stocks that are also paying dividends to their investors.
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1. Canadian Apartment Properties Real Estate Investment Trust (TSX:CAR.UN)
One of the largest of its kind in the country, Canadian Apartment Properties Real Estate Investment Trust (REIT) pays a monthly dividend of C$ 0.115 per share to its investors.
While its dividend yield stands at 2.4 per cent, the real estate player’s market capitalization stands at C$ 9.6 billion, as per TMX data.
The REIT grew about 13 per cent quarter-to-date, while its 52-week high stands at C$ 58.2.
2. Allied Properties Real Estate Investment Trust (TSX:AP.UN)
Allied Properties REIT announced a monthly dividend of C$ 142 per share on Monday, May 17. Its current dividend yield stands at 3.9 per cent, while its market capitalization stands at C$ 5.5 billion, as per TMX.
The REIT’s price growth remained resilient in the last three months, rising 21 per cent.
Allied Properties REIT recently announced its first quarter financial results for 2021, where its net income stood at C$ 77.5 million.
While the company said that its leasing momentum remained robust in the latest quarter, its net income was down about 70 per cent on a year-over-year (YoY) basis.
3. Morguard Corporation Ltd (TSX:MRC)
One of the top performers among real estate companies on the TSX, Morguard Corp stocks returned about 21 per cent in the last 30 days.
The company currently pays a quarterly dividend of C$ 0.15 per share, with a dividend yield of about 0.4 per cent, TMX data shows.
The real estate player, with a market capitalization of about C$ 1.5 billion, operates as the parent organization for two REITS. It invests in real estate assets directly as the parent company, while earning revenue through its stake in its REIT investments.
The stock is yet reach its pre-pandemic growth levels, and investors can look at it as a good entry point, as per industry experts.
Morguard’s owned and operated portfolio of real estate assets is currently valued at C$19.2 billion.
4. Granite Real Estate Investment Trust (TSX:GRT.UN)
Granite REIT currently pays a monthly dividend of C$ 0.25 per share to its shareholders, with a dividend yield of 3.7 per cent.
With a market capitalization of about C$ 5 billion, the REIT records a return on equity of 19.79 per cent.
Granite REIT saw a rise of about C$ 13.6 million YoY in its net operating income of C$ 81.5 million in the first quarter of 2021. This rise was primarily backed by the company’s active asset acquisition strategy, which began in the first quarter of 2020.
Granite said in its earnings report that amid increasing concerns due to the pandemic, it expects to be able to tide over the impact of the third wave of infections on the back of its portfolio and robust liquidity position.
Bridgemarq Real Estate Services Inc (TSX:BRE)
Bridgemarq Real Estate Services pays a monthly dividend of C$ 0.113 per share, and presently holds a dividend yield of 7.7 per cent, as per TMX.
Bridgemarq shares grew 15.9 percent in the last three months, and holds a 52-week high of C$ 17.89. It has a market capitalization of about C$ 162 million.
Bridgemarq currently holds a return-on-equity of 61.21 per cent, and a dividend growth rate of 0.29 per cent for the last three years.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from investment point of view.
