AUS
NZ
UK
CA
USA
IND
_07_12_2022_12_51_15_751589.jpg)
_10_04_2024_16_38_50_427275.jpg)
Highlights
- Units of CAPREIT sank by over 28 per cent in a year
- RioCan REIT held a dividend yield of about five per cent
- InterRent saw the same property occupancy rate of 96.4 per cent in March 2022
Canadians could explore quality Real Estate Investment Trusts (REITs) like Canadian Apartment Properties (TSX: CAR.UN), Granite (TSX: GRT.UN), RioCan (TSX: REI.UN) etc to hedge against short-term uncertainty expected by the Canadian Mortgage and Housing Corporation (CHMC).
On Monday, July 11, the CHMC projected the impact of inflation and increasing policy rates on the Canadian economy and housing market in case of moderate interest rate and high-interest rate scenarios. The national housing agency expects that short-term volatility will remain in the short term as both circumstances result in an economic slowdown.
Here are five TSX REIT stocks that Canadian investors could explore for future returns.
1. Canadian Apartment Properties REIT (TSX: CAR.UN)
Popular as CAPREIT, this REIT holds a market capitalization exceeding C$ 7.6 billion. The mid-cap firm had a debt-to-equity ratio of 0.66, representing lower financial risk.
Units of CAPREIT sank by over 28 per cent in a year. Information gathered from EODHD/Others suggests that CAPREIT held a Relative Strength Index (RSI) of 37.53 on July 11, with the Moving Average Convergence/ Divergence (MACD) indicator below the zero line.
2. Granite REIT (TSX: GRT.UN)
Granite posted a dividend yield of about four per cent, representing an annual dividend given by the company to its shareholders expressed as a percentage of the prevailing stock price.
GRT.UN unit was down by almost 12 per cent in 52 weeks and, according to EODHD/Others, held an RSI of 30.5 on July 11, approximate the oversold mark.
3. RioCan REIT (TSX: REI.UN)
RioCan is a mid-cap firm paying out a monthly dividend of C$ 0.085. REI.UN stock declined by almost 13 per cent in 12 months. RioCan REIT held a dividend yield of about five per cent.
As per EODHD/Others, REI.UN had an RSI of 37.16, slightly above the oversold mark of 30, on July 11.
©Kalkine Media®; ©Garis Studio via Canva.com
4. InterRent REIT (TSX: IIP.UN)
InterRent saw the same property occupancy rate of 96.4 per cent in March this year, indicating a year-over-year (YoY) surge of 480 basis points. This REIT is set to pay a monthly dividend of C$ 0.029 on July 15.
IIP.UN unit shrank by nearly 33 per cent in 12 months. As per EODHD/Others, InterRent held an RSI of 37.41 on July 11.
5. Boardwalk REIT (TSX: BEI.UN)
Boardwalk is due for two dividend payments of C$ 0.09 each, first on July 15 and then on August 15. Boardwalk’s profitability, reflected by its return on equity (ROE), was almost 16 per cent.
According to EODHD/Others, BEI.UN unit appears to be on a bearish trend with an RSI of 43.29 on July 11.
Bottomline
The TSX real state index has contracted by over 22 per cent year-to-date (YTD). However, besides providing monthly dividend income, these TSX-listed REITs could extend exposure to the real estate market for investors aiming for gains in the long run.
Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
