
TSE:CRT.UN
This summary was created by AI, based on 3 opinions in the last 12 months.
CT Real Estate Investment (CRT.UN-T) has received positive reviews from several experts, highlighting its stability and connection to Canadian Tire, which contributes 92% of its rent and holds 70% of the REIT. Although the growth prospects are modest, with expectations of about 2% top-line growth, the management is highly regarded, and the distribution yield is considered safe at just below 6%. Experts appreciate its technical performance, noting a series of higher highs and higher lows, suggesting it could be primed for a breakout. With a current yield of 5.98% and an analyst price target of $16.49, many see CRT.UN-T as a reliable defensive investment option that offers capital protection and consistent dividend income amidst a potentially defensive market environment.
Canadian Tire. Predominantly leased by Canadian Tire. Continues to be held 80% by Canadian Tire Corp. A sustainable distribution ratio of about 90%. If you look at single tenant REITs, the growth is not as good as a more diversified REIT. They should get 3% AFFO growth. If they developed on their redevelopment acquisitions it could be more. Lease terms are 8-9 years so there is not a lot of risk to their cash flows. But after that things could change.
He would be careful about these types of REITs in that you are dealing with almost non-arms length negotiations between the REIT and the rent it gets from the tenants. The company is going to maximize the benefits of that to their advantage. He would also be concerned if rates begin to rise as REITs are always somewhat interest sensitive.
Great company. Stock has done very, very well. They own Canadian Tire properties across Canada. Have shown above average growth. This has been one of the top performers in Canada. Has been trimming his holdings as it has become too expensive. He would buy this on a pullback.