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

Melisa R. H. Posted On May 14, 2019

REITs Overview
REIT stocks stand for real estate investment trusts. When an investor buys a REIT, they are buying a share in a commercial real estate portfolio. These portfolios own income-producing commercial real estate and pay good dividends. Most of them also operate their properties.

Usually, REIT stocks will focus on a particular segment of the real estate sector. However, ETFs and other specialty REITs will be a mix of diversified properties. REITs are great for diversifying your portfolio.

REITs are great high income securities alongside banks. Income investors favour this security as they give access to real estate combined with more liquidity than traditional real estate investments.

How can you buy REITs?
REITs can be purchased in any investment portfolio through a portfolio manager or on your own using an online brokerage. We recommend Questrade if you want to go through an online broker. You can read more about why we think it’s the perfect platform for any Canadian investor.

Certain REITs will focus on a specific part of the real estate market, while others will offer a diversified batch, such as with an ETF.

REITs and Risk?
REITs are considered volatile depending on where we are in the economic cycle. Oftentimes, a downturn in the economy and housing can cause volatility in REIT stocks. Canadian REIT stocks are facing pressure as the housing market in Canada enters less certain times. Real-estate market fluctuations will affect REITs directly. In a recession, these stocks can underperform. In recent years, investors dealing with a low interest rate climate have favoured REITs for income.

Other things to keep in mind are that there are usually higher management fees than with other investment securities. It’s also important to know that there are tax regulations and there are legal structures that makes it harder for growth in capital appreciation. However, they do offer stable cash flow and diversification for your portfolio if you don’t already own real estate.

Here is our selection of Canadian REIT Stocks & ETFs…

You might also like : Gimme Shelter (and a Dividend) : REITs.

💹 ETF

iShares S&P/TSX Capped REIT (XRE-T)
A Canadian REIT that is dominated by RioCan (REI.UN-T) and H&R Real Estate (HR.UN-T). RioCan operates many Canadian shopping centres.

iShares S&P/TSX Capped REIT (XRE-T) — Stockchase

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…

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Horizons Equal Weight Canada Reit Index Etf (HCRE-T)
This Canada focused REIT tries to follow the performance of the Solactive Equal Weight Canada REIT Index. Rates are pausing and traditionally, REIT stocks have done well during this period.

Horizons Equal Weight Canada Reit Index Etf (HCRE-T) — Stockchase

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

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BMO Equal Weight REITs Index (ZRE-T)
They broke out in March and has continued to do well. They have a dividend yield of 4.32%.

BMO Equal Weight REITs Index (ZRE-T) — Stockchase

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

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Harvest Global REIT Leaders Income ETF (HGR-T)
This ETF centres on gold and gold producers. This ETF will benefit from higher gold prices and offer stability. A great choice to hold gold in a different way.

Harvest Global REIT Leaders Income ETF (HGR-T) — Stockchase

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…

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Vanguard FTSE Cdn Capped REIT (VRE-T)
This index fund follows the performance of a broad range of Canadian real estate equity companies. It currently tracks the FTSE Canada All Cap Real Estate Capped 25% Index.

Vanguard FTSE Cdn Capped REIT (VRE-T) — Stockchase

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.

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🏛 Financials

Canada
Smart REIT (SRU.UN-T)
A retail REIT that operates 60% in Ontario and the rest elsewhere. They have performed very well and pays a good dividend. Their biggest tenant is Walmart. They are also developping aggressively in Toronto.

Smart REIT (SRU.UN-T) — Stockchase

Great operator. Dominant lease to WMT, so distribution is safe. Long-term hold for income. As a total return investor, he looks for more. Tougher leasing environment, below 98% occupancy level.

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Choice Properties REIT (CHP.UN-T)
A spin off company by Loblaws and the properties are leased to Loblaw stores. They have built-in future growth in the redevelopment of urban properties.

Choice Properties REIT (CHP.UN-T) — Stockchase

Stable income provider you can add to any portfolio. Likes it. Great real estate nationally. Biggest tenant is Loblaw, so it has a secure cashflow. An element of growth, which is unique, from the industrial sector. Nice combination of safety and growth. Hold, sleep well at night with the distribution yield.

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WPT Industrial REIT (WIR.U-T)
A REIT that focuses on building facilities, mostly warehouses, that are used in traditional and online retail as well as manufacturing. They have a US focus and pay their dividends in USD. A name that can grow with e-commerce.

WPT Industrial REIT (WIR.UN-T) — Stockchase

Taken over by Blackstone. No longer listed.

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Northwest Healthcare Property REIT (NWH.UN-T)
A trust that runs medical office buildings in Canada, Germany, Brazil and other locations. They are diversified across the world and recently announced a project in Australia. They pay 6.9% yield.

NorthWest Health Prop Real Est Inv Trust (NWH.UN-T) — Stockchase

Global medical facilities. Canada, Brazil, Australia, UK, Europe. Shares sold off with failed Australian deal. Stable operator. Premium to NAV. Yield is safe. Bit of currency volatility. Grows nicely, in good shape. Issues equity to fund growth, which provides a time to buy.

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Dream Office REIT (D.UN-T)
One of the largest Real Estate Investment Trusts in Canada. They specialize in office buildings. A lot of their operations are focused in Toronto.

Dream Office REIT (D.UN-T) — Stockchase

(A Top Pick Feb 18/21, Up 29.9%)Stockchase Research Editor: Michael O’Reilly Our PAST TOP PICK with D.UN is progressing well and has achieved our $25 objective. To remain disciplined, we recommend covering half the position and trailing up the stop (from $16.00) to $$22.50.

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Plaza Retail REIT (PLZ.UN-T)
They are developers with tenants like Shoppers Drug Mart. The trust specializes in shopping and retail in Atlantic Canada and Quebec. Analysts see a strong management team and their operations are seen to be best in class.

Plaza Retail REIT (PLZ.UN-T) — Stockchase

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.

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Pure Multi-Family REIT LP (RUF.U-X)
Peter Imhof sees this REIT as a good defensive play with a good yield. A good play on the US demand on apartments that gives you some exposure to the US market. There was a take-over deal discussed recently and the company has struck a committee to facilitate a possible sale.

Pure Multi-Family REIT LP (RUF.U-X) — Stockchase

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…

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InterRent REIT (IIP.UN-T)
Their main holdings are apartments in Toronto, Ottawa and Montreal. There are good fundamentals for apartments and dividend increases are expected to be announced in the coming years.

InterRent REIT (IIP.UN-T) — Stockchase

Multi-family apartment REITs in Montreal, Toronto, Ottawa. Set up for low double-digit growth next year. Trades at discount to NAV. Yield is 2.02%.

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Slate Office REIT (SOT.UN-T)
They recently cut dividends to rebalance to buy property in Chicago. There are some vacancies that they are struggling to fill in Toronto. They have a sustainable payout of nearly 10%.

Slate Office REIT (SOT.UN-T) — Stockchase

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.

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Boardwalk REIT (BEI.UN-T)
A well-known REIT that operates multiple communities including Boardwalk Communities, Structures Metropolitaines, and Boardwalk Retirement Community. They were affected by the slow-down in Alberta and are refocusing on Ontario.

Boardwalk REIT (BEI.UN-T) — Stockchase

He's bullish on Alberta. Next year, he expects unemployment rate to be lower than it was pre-Covid, pretty remarkable. With higher oil prices and more diversified economy, Alberta's a winner next year. Lowest multiple yet highest earnings growth, a powerful combination. Highest cap rate in its sector. Very bullish if concessions are removed and they…

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Slate Retail REIT (SRT.UN-T)
A grocery-anchored real estate investment trust in secondary markets in the U.S. midwest. A stable operation that is well-run. Managements are also large shareholders.

Slate Retail REIT (SRT.UN-T) — Stockchase

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.

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Dream Industrial REIT (DIR.UN-T)
The industrial warehouse sector in general has been experiencing high demand. DIR.UN-T is well positioned to take advantage of this trend. They are adding value and the technological move will help grow the company.

Dream Industrial REIT (DIR.UN-T) — Stockchase

Industrial REITs have done well because of the demand for industrial, storing, and warehousing. He thinks for this year industrial REITs are going to continue to outperform broader REITs as well as the broader markets. Already priced in and not likely to get higher.

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Dream Global REIT (DRG.UN-T)
A lot of their focus is in Europe with lots of regulations. It is one of the top performing REITs that is considered more defensive. They pay a dividend of 5.9%

Dream Global REIT (DRG.UN-T) — Stockchase

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.

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Granite REIT (GRT.UN-T)
A global real estate operator composed mainly of former holdings of Magna International. Their balance sheet is looking good and they are well-positioned. They have a low payout ratio for a REIT.

Granite REIT (GRT.UN-T) — Stockchase

Allan Tong’s Discover Picks Granite's PE clocks in at a very respectable 5.8x and margins which handily beat Allied and Dream REITs. The same goes with its ROI of 16.72% vs. Dream's 12.35%. The dividend yield clocks in on the low side in this sector at 3.08% but is solid at a lowly 16.47% payout…

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Allied Properties REIT (AP.UN-T)
A leader in the industrial space in Canadian cities. One of the highest quality Canadian REITs available. They are trading at a premium but is one of the more defensive securities.

Allied Properties REIT (AP.UN-T) — Stockchase

(A Top Pick Dec 24/20, Up 9.9%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with AP.UN has triggered its stop at $41.50. To remain disciplined, we recommend covering the position at this time. We will look for better opportunities.

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Inovalis REIT (INO.UN-T)
A leading Canadian REIT stock that focus on owning and managing a portfolio of high-quality assets in Germany and France. They announced a purchase of a building in Germany recently.

Inovalis REIT (INO.UN-T) — Stockchase

A difficult one to own. High yield, with paying out all of, or more than, their cashflow. European commercial properties are now a tough environment. Internal growth prospects not as rosy as they once were.

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Morguard North American REIT (MRG.UN-T)
A Canadian REIT stock that focus on high-quality multi-suite residential properties in Canada and the United States. They pay a dividend of 3.85%.

Morguard North American REIT (MRG.UN-T) — Stockchase

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.…

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Agellan Commercial REIT (ACR.UN-T)
A portfolio with US properties. They also operate in Toronto. Their specialty is acquiring and owning industrial, office and retail properties.

Agellan Commercial REIT (ACR.UN-T) — Stockchase

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.

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True North Commercial REIT (TNT.UN-T)
They announced a strong start to 2019 with an acquisition of Federal government tenant office property in downtown Ottawa. They pay a dividend of 8.93%.

True North Commercial REIT (TNT.UN-T) — Stockchase

Focused on office across Canada. High Quality buildings in secondary locations. They operate at a higher distribution level. The issue is that they are paying out all of their cash flow. It is highly cap-x driven. There should be some cushion between AFFO and distribution.

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Melcor REIT (MR.UN-T)
They are actively buying back stocks in order to have the present value reflect the intrinsic value. A stable company that remains well-positioned to capitalize on opportunities that are presented while Alberta recovers.

Melcor REIT (MR.UN-T) — Stockchase

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.

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Partners REIT (PAR.UN-T)
A Canadian REIT stock that is based in Toronto. They operate in retail and mixed-use retail community and neighbourhood centres. They pay a strong dividend of 10.47%.

Partners REIT (PAR.UN-T) — Stockchase

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.

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Australian REIT Income Fund (HRR.UN-T)
The REIT focuses on the Australian market segment. The dividend is at 5.92%.

Australian REIT Income Fund (HRR.UN-T) — Stockchase

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.

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United States
Vanguard REIT ETF (VNQ-N)
This US REIT ETF follows the general pattern across the industry. It is an extremely well diversified ETF and is one of the largest REIT funds.

Vanguard REIT ETF (VNQ-N) — Stockchase

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

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Market Vectors Mortgage REIT ETF (MORT-N)
A index fund that follows closely the “Mortgage REITs Index”. They pay a dividend of 7.19%.

Market Vectors Mortgage REIT ETF (MORT-N) — Stockchase

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.

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Armour Residential REIT (ARR-N)
They had a disappointing first quarter but also announced that they are going to keep dividends the same. They focus primarily in fixed rate residential, residential mortgage-backed securities and U.S. Government-sponsored enterprises.

Armour Residential REIT (ARR-N) — Stockchase

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…

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SPDR DJ REIT ETF (RWR-N)
RWR is one of the oldest real estate ETFs on the market. They follow the Dow Jones U.S. Select REIT Index. They pay a yield of 3.68%.