Big-city focus gives investors steady income

Article Excerpt

These two REITs are increasingly focused on their core markets. That only strengthens their appeal for income-seekers. We’re confident that their high-quality properties in hot urban markets will fuel your gains and distributions. RIOCAN REAL ESTATE INVESTMENT TRUST $27 is a buy. Through your distributions in this REIT (Toronto symbol REI.UN; Cyclical-Growth Dividend Payer Portfolio, Manufacturing sector; Units outstanding: 317.7 million; Market cap: $8.6 billion; Dividend yield: 5.3%; Dividend Sustainability Rating: Above Average; www.riocan.com) you hold a stake in its extensive portfolio of shopping centres. Specifically, RioCan holds all or part of 220 of those properties, along with other sites, across Canada. They include 14 projects now under development. The REIT has maintained the same level of distribution since January 2018, when it increased your monthly payment to $0.12 a unit from $0.1175. The annual rate of $1.44 yields a high 5.3%. Starting in October 2017, under a new plan to boost investor value, RioCan has sold 81 properties in smaller cities and worth $1.6 billion. At…