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 | 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.]
{ 8 comments… read them below or add one }
Great post. Surprised that CWT and REI are not higher on the list….these are great REITs.
I also like your call on Vanguard ETFs for REITs, but iShares has a nice product as well: XRE even though the MER is higher. I’ve owned XRE for 5 years, loved the returns.
Cheers,
Mark
thanks MOA.
Your REI and CWT are two of the largest REITs in Canada. I would agree with you that they are very solid REIT companies that are worthy of investment. But, yes, some of the smaller REITs bubbled their way past them, to the top of my list.
So how is the list arranged????
It is not by yield, price, AFFO, Ratio, alphabetically….??
IKan, not figure it out.
The ranking is proprietary. The table only lists two of the metrics that are used in the overall ranking.
3-6% in REITs seems reasonable if you have a good chunk of your net worth in personal/residential real estate. Diversifying by buying REITS in commercial and industrial properties may help too.
It would be interesting to also have a percentage distribution growth metric in your table.
Yes, perhaps that could be added in a future update to this table.
Great post!
I couldn’t find something similar about 2-3 weeks ago when wanted to add couple of REIT in my TFSA. Mostly I considered AFFO payout and yield withon big REIT. First 3 on my list came: AX, CUF and D, so bought first 2.
Also holding PMZ for couple of years and pretty happy with it.
btw, I`m 10% in REIT
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