2 TSX REIT stocks to buy for passive income: CAR.UN and GRT.UN

June 25, 2022 03:34 AM PDT | By Kajal Jain

2 TSX REIT stocks to buy for passive income: CAR.UN and GRT.UN — Image source: © 2022 Kalkine Media®

Canadian Apartment Properties REIT (TSX: CAR.UN)

Canadian Apartment, also popular as CAPREIT, improved its overall portfolio occupancy from 97.3 per cent in Q1 2021 to 98 per cent in Q1 2022. CAPREIT’s operating revenue amounted to C$ 246.62 million in the latest quarter, higher than C$ 227.5 million in Q1 2021. This publicly-traded REIT also posted a net operating profit of C$ 153.17 million in Q1 2022 compared to C$ 146.65 million a year ago.

CAPREIT is set to disburse a monthly dividend of C$ 0.121 on July 15. As of its stock performance, CAR.UN plummeted by about 25 per cent in a year. According to Refinitiv data, CAPREIT’s Relative Strength Index (RSI) was 34.24 on June 22, marginally higher than the oversold territory.

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Granite REIT (TSX: GRT.UN)

Granite REIT posted a net operating profit of C$ 91.2 million in Q1 2022, up from C$ 81.5 million in the same period a year ago. The TSX-listed REIT also improved its funds from operations (FFO) to C$ 69.4 million in the latest quarter, higher than C$ 57.1 million in Q1 2021.

Granite is also timed for a monthly dividend of C$ 0.258, payable on July 15. GRT.UN fell by nearly eight per cent year-over-year (YoY) on June 22. As per Refinitiv data, this REIT had an RSI value of 31.54 on June 22.

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Bottomline

Income-focused investors can consider these TSX REITs as they are currently discounted (nearing their 52-week low) and deliver monthly dividends. Additionally, these REITs provide exposure to the real estate market and could benefit 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.

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