Andrew Moffs CT Real Estate Investment CRT.UN-T HOLD May 30, 2024

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.

Not for growth, but own for stability of cashflow from its investment-grade tenant, Canadian Tire. One of the largest REITs in Canada. Discount to NAV. Stable, keep holding. Yield is around 6.5%.

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%.

Similar to grocery-anchored. Suite of tenants connected to Canadian Tire. Very well structured with nice little increases in rent over time along with inflation. Really likes it. Very stable. With tariffs, he suspects that more of us will shop Canadian brands to support our Canadian economy.