Andrew Moffs CT Real Estate Investment CRT.UN-T HOLD Sep 27, 2023

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. A solid REIT. Not too expensive with good tenants and income. Cashflow is good. They raised distributions in June. Cashflow rose 5% last quarter with the payout ratio low at 72.6%. Unlock Premium - Try 5i Free

It owns the assets of Canadian Tire. Has a net lease structure where the tenants are responsible for operations and asset improvements, Stable earnings at 5% plus. Good management and low growth.

Thinks highly of it and management. 92% of rents come from Canadian Tire. Very safe distribution yield, low leverage around 40%. Not concerned about balance sheet. Decent job growing net operating income by 2.6% YOY.

Very stable. Sleep at night with an investment-grade tenant like Canadian Tire. Discount to NAV. Not a lot of upside in terms of growth, which would come from acquisitions. Sees no current risks. Distribution yield is 6.8%.

Like Choice REIT is to Loblaw, CRT is to Canadian Tire. The 6% dividend is safe, based on a safe payout ratio. If interest rates stay pat, these shares won't move much, but if rates fall, CRT will do well.

Over 90% of rents come from Canadian Tire, secure cashflow. Over 99% occupancy. Internal growth has contracted, but this is short-term. Perhaps only 2% capital growth, but a safe distribution. Yield is 6.5%.