Best Canadian REITs

by Avrex on February 20, 2013

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Real Estate Investment Trusts, with their nice income yields, continue to be popular with investors. Avrex Money has compiled and ranked a complete list of all the Canadian REITs on the Toronto stock exchange (TSX).

Avrex Price/ Payout
Rank Company Ticker Yield AFFO Ratio REIT Sector
1 Artis REIT AX.UN 6.82% 14.66 91.7 Diversified I (Off/Ind/Ret)
2 Morguard Real Estate Inv Trust MRT.UN 5.09% 19.53 81.7 Commercial
3 First Asset Canadian REIT RIT.UN 4.67% - 26.8 Fund
4 Northwest Healthcare Prop REIT NWH.UN 6.04% 16.56 94.5 Retire/Health
5 Retrocom Mid-Market REIT RMM.UN 8.17% 12.24 117.5 Retail
6 Cominar REIT CUF.UN 6.29% 15.74 93.0 Diversified I (Off/Ind/Ret)
7 Dundee International REIT DI.UN 6.93% 13.89 96.4 Commercial
8 Dundee REIT D.UN 5.81% 17.03 92.1 Office
9 Partners REIT PAR.UN 8.10% 12.34 106.0 Retail
10 Boardwalk REIT BEI.UN 3.00% 33.64 71.3 Residential
11 BTB REIT BTB.UN 8.61% - 27.4 Diversified I (Off/Ind/Ret)
12 Primaris Retail REIT PMZ.UN 4.67% 21.79 93.9 Retail
13 Timbercreek Global Real Estate TGF.UN 6.41% - 44.6 Fund
14 Calloway REIT CWT.UN 5.34% 18.68 89.8 Retail
15 Brookfield Canada Office Prop. BOX.UN 4.00% 24.71 92.9 Office
16 H&R Real Estate Invest. Trust HR.UN 5.90% 16.90 90.0 Diversified I (Off/Ind/Ret)
17 Pure Industrial Real Estate AAR.UN 5.94% 16.92 84.3 Industrial
18 Northern Property REIT NPR.UN 4.82% 20.49 77.5 Residential
19 RioCan Real Estate Investment REI.UN 5.14% 19.63 97.6 Diversified II (Office/Retail)
20 Allied Properties REIT AP.UN 3.88% 25.83 82.9 Office
21 Canadian Apartment Property (CAP REIT) CAR.UN 4.26% 22.55 85.1 Residential
22 REIT INDEXPLUS Income Fund IDR.UN 6.56% - - Fund
23 Crombie REIT CRR.UN 6.05% 16.53 98.6 Diversified II (Office/Retail)
24 InterRent REIT IIP.UN 2.60% 37.33 54.2 Residential
25 Cdn. Real Estate Investment REF.UN 3.30% 29.61 63.1 Diversified I (Off/Ind/Ret)
26 Chartwell Retirement Residence CSH.UN 4.98% 20.03 76.2 Retire/Health
27 Morguard Sunstone Real Estate MSN.UN 5.52% - 178.1 Fund
28 InnVest REIT INN.UN 9.28% - 51.2 Hospitality
29 Temple Hotels TPH 8.38% - 86.0 Hospitality
30 KEYreit KRE.UN 9.01% - 239.5 Retail
n/a Loblaw’s Choice Properties REIT CHP-UN - - - Retail
n/a Agellan Commercial REIT ACR.UN - - - Diversified I (Off/Ind/Ret)
n/a American Hotel Income Properties REIT LP HOT.UN - - - Hospitality
n/a Canadian REIT Income Fund RIU.UN 4.81% - - Fund
n/a Connor Clark & Lunn Real Ret RRB.UN - - - Fund
n/a Dundee Industrial REIT DIR.UN 6.08% - - Industrial
n/a HealthLease Properties REIT HLP.UN 7.71% - - Retire/Health
n/a Holloway Lodging REIT HLR.UN - - - Hospitality
n/a Huntingdon Capital HNT - - - Diversified I (Off/Ind/Ret)
n/a Lanesborough REIT LRT.UN - - - Residential
n/a Middlefield Can-Global REIT RCO.UN 6.37% - - Fund
n/a Morguard North American REIT MRG.UN 5.13% - - Residential
n/a N.W. Intl Healthcare Prop.REIT MOB.UN-X 7.44% - - Retire/Health
n/a North American REIT NRF.UN 6.19% - - Fund
n/a Pure Multi-Family REIT LP RUF.U-X 7.11% - - Residential
n/a True North Apartment REIT TN.UN-X 7.08% - - Residential
n/a US Agency Mortgage-Backed REIT USM.UN - - - Fund

Avrex Rank – Is derived based on several valuation metrics. For illustration purposes, only two of those metrics are listed in the table above. A rank of ‘n/a’ indicates that there is insufficient data for a ranking.
P/AFFO – Price per ‘Adjusted Funds From Operation’. A lower number is better for this valuation metric.
Payout Ratio – Expressed as a percentage. A lower number ‘could’ indicate a safer distribution payout.

Asset Allocation

As an individual investor, where do REITs fit within your portfolio?

The Avrex Money portfolio has 6 % invested in REITs. This consists of owning individual REITs as well as owning the following REIT Index ETFs for further diversification:

By way of comparison, large pension funds hold 9 % of their assets in real estate. Considering that many individual investors also have real estate, in the form of home ownership, I feel that the 6 % allocation to REITs is adequate.

Since REITs are not highly correlated to the movement of equities, they provide effective diversification within your portfolio. REITs are great long-term holdings in your retirement account.

[Disclaimer: The above rankings are opinions only and should not be considered investing advice. Perform your own due diligence. Contact a professional before making any investing decisions.]