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

XRE vs. IYR Totally different products because of the country, given XRE is Canada and IYR is the US. XRE top 31% investments are in retail. IYR has only 9% retail. For residential, it's 25% XRE and only 15% IYR. Largest holding in IYR is AMT. IYR is more diversified, less exposed to retail which…

HCRE is a tax efficient way to have an equal weight exposure to REITs in Canada. BMO has ZRE.

HCRE is a tax efficient way to have an equal weight exposure to REITs in Canada. BMO has ZRE.

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.

A defensive chapter within the retail story. Pristine balance sheet. 1/3 of space anchored by WMT, a strong leasing partner. Selling on-site condos, and immigration keeps demand high. Yield is 6%.

Largest REIT in Canada. Trades at discount to net asset value. Diversified retail, but has 3/4 of assets in retail. Growing industrial section of portfolio. Is a defensive name with solid yield and growing cash flow. Excellent management team.

(A Top Pick Jan 12/21, Up 48%) Great-managed REIT. Taken out.

High dividend yield (~8%). Current share price presenting good buying opportunity (long term investor). Healthcare properties not sensitive to rising interest rates. Well managed and consistent growth.

(A Top Pick Feb 18/21, Up 24.7%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with D.UN has triggered its stop at $24. To remain disciplined we recommend covering the position at this time.

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. It has good growth expectations and has stable tenants. Should be able to increase rents in-line with inflation over time. Has large anchor tenants that helps with stability. This could also mean a bit less bargaining power to raise rates however. Unlock Premium - Try 5i Free

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…

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Reducing debt levels over time. Payout ratio at a sustainable rate. Risk of no rent raise policy to continue. Primarily focused on Toronto and Montreal.

Unsure on future of office space demand. Management team of company well respected. Does not own stock in company. Well regarded within industry.

(A Top Pick Sep 27/21, Down 4%) Will continue to hold and would buy again. Believes company is well run with excellent management. Does not have to worry about rent controls as most of inventory is in Alberta (not likely to get rent control). Calgary and Edmonton are strong markets. Rising rent is good for…

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.

If cap rates are moving higher and hurting valuations, it's a buying opportunity for the industrial REIT sector. Space is still undervalued compared to cashflows and potential growth next 2-3 years. We're running out of public industrial REITs to invest in, and DIR.UN will benefit as SMU.UN gets taken out.

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.

Stockchase Research Editor: Michael O'Reilly We reiterate GRT.UN, which holds significant industrial and warehouse properties in North America and Europe (key in the rebalancing of global supply-chain issues), as a TOP PICK. It expects to raise rents on new industrial leases by 15-20%, signifying demand remaining strong. Its European assets have been discounted almost to…

Pays an attractive yield over 6%. They primarily hold office RE, which is slowly improving. They target 90% occupancy by end-2022. She's watching this, because it has fallen a lot, but the overhang is how much workers return to the office or stay at home. Is watching this as rates rise, which is a headwind.…

Canadian listed REIT. Office properties. Challenge with business model is that lots of leverage not good in rising interest rate environment. Cost of capital increasing (not good for long term earnings). Not a good company to own now. Wait until interest rates stabilize before buying.

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.

Smaller cap office space REIT focused in Canada. Has a bit more of government concentration so that provides some stability. Has a high distribution yield but it is not fully covered by cash flow.. Analysts have 4 holds.

Concentrated in Alberta. His reservation is that most assets are in retail and office, with only 5-6% industrial warehouse. These are two very tough sectors. Will take a long time to recover. Discount to NAV, but not many catalysts to close the gap. Instead, look at the apartment sector.

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.

VNQ is always a good option, with a yield of high 2%, gives broad diversification.

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.