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Highlights
- Some real estate stocks and Real Estate Investment Trusts (REITs) can be ideal investment options for investors seeking dividend income and risk diversification of their investment portfolio.
- In 2021, the S&P/ TSX Capped Real Estate Index outperformed the TSX Composite index by recording a year-to-date (YTD) rise of nearly 31 per cent.
- Units of an REIT mentioned here swelled by almost 68 per cent in 2021.
Some real estate stocks and Real Estate Investment Trusts (REITs) can be ideal investment options for investors seeking dividend income and risk diversification of their investment portfolio.
In 2021, the S&P/ TSX Capped Real Estate Index outperformed the TSX Composite index by recording a year-to-date (YTD) rise of nearly 31 per cent.
On that note, let us explore five Canadian real estate stocks and REITs that performed well in 2021.
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1. Summit Industrial Income REIT (TSX:SMU.UN)
Summit Industrial Income REIT posted a net income of C$ 0.25 million in the third quarter of fiscal 2021, as compared to C$ 0.043 million in the same quarter a year ago.
The REIT is scheduled for a quarterly dividend payment of C$ 0.15 apiece on January 17, 2022.
Units of the Toronto-headquartered mutual fund trust swelled by almost 68 per cent this year and closed at C$ 23.1 per unit on December 29.
Also read: 5 best industrial stocks of 2021 in Canada
2. Tricon Residential Inc (TSX:TCN)
Tricon Residential Inc, a Toronto-based rental housing company, recorded US$ 201.9 million as net income in the third quarter of FY2021, which was up by 280 per cent from the previous year.
The real estate operator will deliver a quarterly dividend of US$ 0.058 per share on January 17, 2022.
TCN stock closed at C$ 19.1 per share on December 29 and zoomed by over 67 per cent year-to-date (YTD).
3. Colliers International Group Inc (TSX:CIGI)
Colliers International Group is a real estate firm that operates as a professional service provider and investor.
The firm reported total revenue of US$ 1.02 billion in Q3 FY2021, as compared to US$ 692.3 million last year.
Colliers International Group is set to deliver a dividend of US$ 0.15 apiece on January 12, 2022, up from the last dividend payout of US$ 0.05.
CIGI stock closed at C$ 188.1 apiece on December 29. The real estate stock soared by nearly 65 per cent YTD.
4. FirstService Corporation (TSX:FSV)
FirstService Corporation, which had a price-to-earnings (P/E) ratio of 69.60, generated revenues of US$ 849.4 million in Q3 2021.
Its adjusted earnings per share were US$ 1.50 in the latest quarter, as compared to US$ 1.19 a year ago.
FirstService will dole out a quarterly dividend of US$ 0.182 apiece on January 7, 2022.
The Toronto-based real estate scrip closed at C$ 249.3 apiece on December 29. FSV stock jumped by roughly 42 per cent YTD.
5. Altus Group Limited (TSX:AIF)
Altus Group Ltd, which provides real estate advisory, software and data solutions, posted consolidated revenue of C$ 151.8 million in Q3 FY2021, a year-over-year (YoY) surge of 12.5 per cent.
Altus Group will pay a quarterly dividend of C$ 0.15 apiece on January 17, 2022.
Stocks of Altus Group closed at C$ 70.4 per share on December 29 and returned nearly 43 per cent YTD.
Bottom line
Investors should mind that real estate stocks and REITs are directly connected to the country’s real estate market conditions. Hence, it is crucial to cautiously pick quality investment options in this field to harness significant profits in the long haul.
Also read: 5 top Canadian retail stocks of 2021
