CT Real Estate Investment (CRT.UN-T)

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%.

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.

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.

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

CT REIT (Canadian Tire) vs. Choice Properties (Loblaw) based on dividends for seniors He likes both REITs. Both dividends are safe, Choice paying 5.4% and CT 4.9%, and both well run. He owns Choice and bullish their outlook. He likes Loblaw as an operator and there is opportunity here. CT is very stable, with their development in Toronto's Yonge/Eglinton, a fantastic location, but very patient with this coming online in several phases.

They will probably have no trouble collecting their rents. Their business will be challenged by the AMZN-Q model. He would not chase them here as they are expensive.

CTC.A vs CRT.UN? CRT.UN has had a nice upward breakout recently which is very positive -- you may have missed the upside move on this one. CTC.A-T has been in a choppy trading cycle since last December. It now seems to be showing some relative strength to the S&P Index. He would stick with CTC.A-T.