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Highlights
- CAPREIT (TSX: CAR.UN) improved its overall portfolio occupancy from 97.3 per cent in Q1 2021 to 98 per cent in Q1 2022
- CAPREIT is set to disburse a monthly dividend of C$ 0.121 on July 15
- Granite REIT (TSX: GRT.UN) posted a net operating profit of C$ 91.2 million in Q1 2022, up from C$ 81.5 million in Q1 2021
Increasing borrowing costs continue to affect the Canadian housing market, with the TSX real estate index falling by almost 24 per cent in 2022. However, when thinking about the long term, income investors can explore dividend-paying Real Estate Investment Trusts (REITs), like Canadian Apartment Properties (TSX: CAR.UN) and Granite (TSX: GRT.UN) as these are currently available at bargain prices.
So, let us discuss these two TSX REITs offering monthly passive income.
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.
Also read: 3 TSX clean stocks to buy as IEA projects energy investment to rise 8%
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.
