28 Canadian REIT Stocks & ETFs with Expert Predictions (2019)

He'd move on. There's a 48% spread between the top and bottom quartile performers. Can't capture the upside with an ETF. Better to focus on the winners, and avoid the losers. CAR, HOM-U, WIR-U, and Granite are great choices. Look for growth, and at a discount is even better.

(A Top Pick Feb 07/20, Down 22%) REITs outperformed into early March at which point he exited. There will be a time when REITs will come back.

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. In a recovery scenario, there is a long term potential for good returns. You should look at a 3+ year horizon. It is not risk free. Unlock Premium - Try 5i Free

Centres on the outlook for gold and gold producers. It's been an abandoned sector, but the fundamentals are pointing higher. US dollar has rolled over, starting to see inflation in the US, and it's held in well while markets have gone higher. There's been a move in the commodity in the last 6-8 weeks. Producers…

He likes real-estate as an asset class. He is more in private equity where volatility is lower and yield is better. He expects pretty significant destruction in retail and office REITs may have challenges with work from home. Broad REITs are probably not the best way to play this space. He prefers niche REITs.

It is a great company. There is not necessarily a grocery component in their centers. It is trading on parity with net asset value. It has the lowest earnings growth amongst its peers and so he is not looking to own this stock today. The yield is solid, however.

He really likes this one. It is heavily weighted toward retail. 95% of its retail centers are anchored by a grocery store or Shoppers Drug Mart. They are almost going at a premium from pre-pandemic values. This tells you how resilient the cash flow is. They have an office portfolio but he likes that their…

Though it trades in Toronto, WPT owns warehouses in the States. Basically, e-commerce stores stuff in these warehouses, and e-commerce has been roaring during this pandemic. Year-to-date, WPT inches slightly ahead of the TSX, but in the past month, the Toronto benchmark has climbed 3.3% while WPT has surged 5.5%. Analyst Andrew Moffs argues that…

A diversified healthcare REIT, with assets in Australia, New Zealand, UK, Brazil and Canada. They just issued units to the public, which signals their stock is fairly valued. It trades at a discount to NAV. NWH is very safe, operating in the right segments of healthcare. They have a growing asset management business, providing steady…

An adept CEO. The REIT operates in the tough office space. They may have to offer incentives to tenants. Don't expect the same level of past income growth, but this REIT is cheap and stable. There are better growth prospects elsewhere, but if you're patient, believe in office space and like this value story, then…

Very strong management, high credit tenant base with pharmacies and grocery stores. It's a tough leasing environment right now. Resiliency of retail is being questioned. If you want better growth, look elsewhere.

He has never really fully understood their business model. There has been a recent take out off for $7.61 US per share. This is a real offer and the money would be there. Prior to that they had worked with a third-party, so it is precluding them from engaging in the current offer. Looming in…

There are other ways to do real estate. He likes Tricon. He thinks there might be a continued setback for student residences. Tricon has housing in the US where there is demand for their houses.

He is not bull on the office space. They have been growing in sub-markets he is not keen on. 37% is in Atlantic Canada and he is not keen on their holdings.

Allan Tong’s Discover Picks Two weeks ago, Boardwalk reported that its occupancy rate was weathering Covid lockdowns. April 2021 occupancy clocked in at 95.7% and was 100 basis points higher than February 2021. Meanwhile, rental collections are on par with pre-Covid numbers. FFO, funds from operations, climbed 4.8% during the first three months of this…

This would be a hold for him, if not a sell. It has US grocery stores in small centres. It has an external management contract, which he feels is not in alignment with share holders.

Stockchase Research Editor: Michael O'Reilly DIR is a leading dividend payer that will benefit with the re-opening of the economy. It has a great yield, backed by a payout ratio under 50% of cash flow. It trades at 10x earnings compared to peers at 17x and is valued at just 1.2x book value. Good value…

Really likes it. Agreed to be acquired by Blackstone. Wouldn't recommend it at this point. Doesn't see a higher bidder. Great opportunity to look at other Canadian REITs with global assets. Look at Granite REIT instead.

Allan Tong’s Discover Picks Further, Granite pays a 3.53% dividend yield based on an ultra-safe 30% payout ratio. While its EPS growth is declining, at $9.82 it still towers over the sector’s $1.68 and has jumped nearly 30% over the previous year. Granite trades at a PE of 8.7x vs. the sector’s 34.1x while its…

A recovery story. Best in class, best assets. Theme of stay at home will wane. There's a more hybrid solution, and its stable of smaller tech and healthcare tenants will benefit. Trades at a 15% discount to NAV. Yield is 4.04%. (Analysts’ price target is $45.23)

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Management has a decent record although recent quarters saw some misses with 5 out of the last 8 missed expectations. Shares have done well since 2016 asides covid's impact. Insiders own over 20%. Unlock Premium - Try 5i Free

A hold. A value name in apartments in Canada and the U.S. He's impressed with how stable their Toronto portfolio is, holding occupancy quite well. MGR is in the US sunbelt and Chicago. MRG is higher-leveraged. He's seeking REITs that are defensive. He doesn't see as much growth here vs. the REITs he already owns.…

A portfolio of US properties. It also has some interesting properties around the DVP area in Toronto. The CEO is one of the few people that not only knows how to buy, but also how to sell. Thinks that at some point, he will sell the entire company if he can, or bit by bit.

He would avoid this one. Office space is difficult to re-tenant. They have an external management structure for their assets, which does not necessarily leave great alignment.

Dividend safe? They did a convertible debenture that he participated in. This is an Edmonton based land bank company. A longer term play. What tends to happen is goes quietly along for a while then they sell off an asset, which causes a spike up. It does not have a large enough dividend to hold…

It is highly leveraged and the payout ratio is close to 100%, recently they cut the dividend and there was management turnover. There were a lot of complicated transactions, some of which were not arm’s length.

One of the only REITs that he still holds. He likes Australia. The problem with this one was when they first set it up, the Australian currency took a big hit right off the bat and that’s why it came down. They are now hedged. Great entry point at this level.

He is talking about US REITS generally and using the Vanguard REIT ETF to show the pattern across the industry. The EFT was trading in a consolidation range ($80-85’s) all of last year, then there was a sharp drop. The ETF has been retracing but the price (now $75.88) is not close to where it…

Companies that are public mortgage investment corps. Lots of volatility. There is probably some value in the sector in returning to pre-covid levels. We do not know the extent of bankruptcies that will come once aid and payment relief is gone.

Around 14% is pretty typical yield for mortgage REITs. This owns Agency Mortgage REITs, both fixed and adjustable rates. If you look through the results of the capital raise they did recently, it was dilutive, so their book value per share was about $7 which dropped to $6.70-$6.80. He doesn’t like to see this. Core…

US real estate ETF? Well diversified un-levered real estate investment.

It is highly leveraged and the payout ratio is close to 100%, recently they cut the dividend and there was management turnover. There were a lot of complicated transactions, some of which were not arm’s length.