Why Are RioCan And H&R REITs Trending?

Summary

  • RioCan holds a current dividend yield of 7.987 per cent. It pays a monthly cash dividend of C$ 0.08 per stock.
  • Units of RioCan have rallied 22 per cent in the last one month
  • H&R delivers a current dividend yield of 4.768 per cent. Its present monthly cash dividend is C$ 0.058 per unit.
  • H&R’s stock has soared nearly 35 per cent in the last one month.

 

Canada's top city real estate sales registered another month of a double-digit gain in November. Greater Toronto Area (GTA) recorded 8,766 housing estate sales in the last month, according to the Toronto Regional Real Estate Board (TRREB). This indicates a 24.3 per cent surge from sales activity year-over-year but a 17 per cent fall month-over-month.

Analysts expect further rise in demand for apartment house and leasing markets post-pandemic as immigrants and temporary residents arrive in the country.

In the wake of evolving growth in the real estate sector, we will take a detailed look at the following REIT stocks: RioCan Real Estate Investment Trust and H&R Real Estate Investment Trust.

 

RioCan Real Estate Investment Trust (TSX: REI.UN)

Current Stock Price: C$ 18.03

 

In the recent exchange filing, Toronto-based RioCan reduced its monthly dividends to stockholders from C$ 0.12 per unit to C$ 0.08 per unit, due to the uncertainty caused by COVID-19 pandemic.

RioCan REIT units have rallied approximately 22 per cent in the last one month and has added nearly 21 per cent growth in the last three months. It has surged almost 5 per cent in the last six months. Its current market capitalization stands at C$ 5.72 billion.

The real estate trust holds a current dividend yield of 7.987 per cent. It pays a monthly cash dividend of C$ 0.08 per share.

The investment trust’s profit-to-book (P/B) ratio is 0.737, and the price-to-cashflow (P/CF) ratio is 10.40. The stock offers a marginal return on equity (ROE) of 0.25 per cent and a small return on assets (ROA) of 0.13 per cent. The trust’s total debt-to-equity (D/B) ratio is 0.87. Its earnings per share are C$ 0.06, as per the TMX portal.

In the third quarter of 2020, RioCan operating metrics included 93.4 per cent cash rent collection, 96 per cent occupancy, and 368,000 square feet of new rentals above its portfolio's average net rent.

H&R Real Estate Investment Trust (TSX: HR.UN)

Current Stock price: C$ 14.47

 

The real estate trust recently concluded its offering of C$ 250 million principal amount of 2.906 per cent Series R debentures, which will mature on June 2, 2026.

H&R REIT has soared nearly 35 per cent in the last one month. The units have jumped almost 39 per cent in the last three months and 28 per cent in the last six months. Its current market cap is approximately C$ 4.15 billion.

The investment trust delivers a current dividend yield of 4.768 per cent. Its present monthly cash dividend is C$ 0.058 per unit.

The trust’s P/B ratio is 0.674, and the P/CF ratio is 9.70. Its present debt-to-equity (D/B) ratio is 1.3, according to the TMX portal.

In the third quarter of 2020, its total rent collection increased to 93 per cent from 90 per cent in Q2 2020. The REIT's estates are presently open and fully functional, comprising all retail assets.

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