28 Canadian REIT Stocks & ETFs with Expert Predictions (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.
Opinion about XRE.TO: We’ve all fallen in love with income investing because interest rates are so low, so everybody is looking afield for…
Stockchase 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.
Opinion about HCRE.TO: REITs are in a good time right now. Rates are pausing or perhaps heading down but the economy has not fallen apart and this is…
Stockchase 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%.
Opinion about ZRE.TO: Good time to be buying under valued REIT. Healthy dividend. Attractive valuation. Expert opinions on BMO Equal Weight REITs…
Stockchase 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.
Opinion about HGR.TO: Good way to diversify outside Canada? Nice yield, but value will go down as interest rates go up, much like bonds. With dollar…
Stockchase 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.
Opinion about VRE.TO: Started trading today. Only 19 holdings. Real Estate. Will probably put XRE on his heels a bit.
Stockchase 🏛 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.
Opinion about SRU.UN.TO: Likes real estate in general, sector will benefit from lower interest rates. In particular, likes those that are building…
Stockchase 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.
Opinion about CHP.UN.TO: Holds quality Loblaw assets and industrial ones mostly located in cities. Same-store net income growth isn't super, but…
Stockchase 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.
Opinion about WIR.UN.TO: Though it trades in Toronto, WPT owns warehouses in the States. Basically, e-commerce stores stuff in these warehouses, and…
Stockchase 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.
Opinion about NWH.UN.TO: Balance sheet's really under pressure, making progress with repairing. Management shakeup, but now the new CEO's leaving in…
Stockchase 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.
Opinion about D.UN.TO: It’s done quite well this year with a nice pop up. These are generally low risk stocks. He’s concerned about yield since it’s…
Stockchase 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.
Opinion about PLZ.UN.TO: PE ratio In real the better measure is price to cash flow or FFO (funds from operations). Cash flow is more critical due to…
Stockchase 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.
Opinion about RUF.U.V: (Market Call Minute.) A really undervalued REIT out of the US. Thinks there is significant upside in this. It is going to be…
Stockchase 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.
Opinion about IIP.UN.TO: Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Positive Same-Property Net Operating Income(SPNOI).…
Stockchase 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%.
Opinion about SOT.UN.TO: He used to own this, got tired of them constantly raising money whenever the stock price went up. The balance sheet is…
Stockchase 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.
Opinion about BEI.UN.TO: Headline "Soaring Canadian housing costs drive population boom in Alberta" tells the story. Affordable housing, with 78%…
Stockchase 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.
Opinion about SRT.UN.TO: A grocery anchored retail in secondary markets in the US. They were very effective at getting a currency spread as well as…
Stockchase 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.
Opinion about DIR.UN.TO: (A Top Pick Sep 27/23, Up 10%) Attractive valuation, about 25-30% undervalued. Last-mile distribution. Europe is seeing…
Stockchase 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%
Opinion about DRG.UN.TO: (Market Call Minute.) Trading at a sizable discount to NAV. However, there are still some single tenant risks. There are…
Stockchase 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.
Opinion about GRT.UN.TO: Has done well in the past. It trades at a premium vs. peers. Instead, she owns Chartwell and CAP REIT.
Stockchase 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.
Opinion about AP.UN.TO: Return-to-office mandate picking up. Stock's benefited due to that sentiment, but hasn't translated to operations. Now…
Stockchase 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.
Opinion about INO.UN.TO: This is a French company. They own one building in Germany and the rest are assets are in Paris.Although the REIT is quite…
Stockchase 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%.
Opinion about MRG.UN.TO: Has owned this for a long time and he likes the name. Likes that they have gone into the US and are focusing on the southern…
Stockchase 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.
Opinion about ACR.UN.TO: Recent IPO that he did not participate in. He was concerned with some of the tenant concentration and, one building in…
Stockchase 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%.
Opinion about TNT.UN.TO: Has been a little weak lately. Made an acquisition of Century Property. Has a management arrangement with Starlight (?) but…
Stockchase 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.
Opinion about MR.UN.TO: Likes the company but not crazy about the REITs and their external management structure. Thought the fees were a little bit…
Stockchase 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%.
Opinion about PAR.UN.TO: (A Top Pick Nov 23/11. Up 4.08%.) Commercial oriented REIT. Expert opinions on Partners REIT (PAR.UN.TO) — buy, sell, or…
Stockchase Australian REIT Income Fund (HRR.UN-T)
The REIT focuses on the Australian market segment. The dividend is at 5.92%.
Opinion about HRR.UN.TO: Australian REIT. They have not has the rise we had here in Canada. This one went through a huge reorganization that cleaned…
Stockchase 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.
Opinion about VNQ: US real estate ETF? 12-basis point MER so it is a low-cost one. Indexed based. Expert opinions on Vanguard REIT ETF (VNQ) — buy,…
Stockchase Market Vectors Mortgage REIT ETF (MORT-N)
A index fund that follows closely the “Mortgage REITs Index”. They pay a dividend of 7.19%.
Opinion about MORT: Generally likes mortgages. You get higher yields and there is harder collateral security. You are a step removed from the…
Stockchase 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.
Opinion about ARR: Around 14% is pretty typical yield for mortgage REITs. This owns Agency Mortgage REITs, both fixed and adjustable rates. If you…
Stockchase 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%.
Opinion about RWR: US real estate ETF? Well diversified un-levered real estate investment. Expert opinions on SPDR DJ REIT ETF (RWR) — buy, sell, or…
Stockchase
Opinion about PAR.UN.TO: (A Top Pick Nov 23/11. Up 4.08%.) Commercial oriented REIT. Expert opinions on Partners REIT (PAR.UN.TO) — buy, sell, or…
Stockchase Trending Now
