Choice has a sustainable payout

Article Excerpt

CHOICE PROPERTIES REIT $15 is a top pick for 2024. Canada’s biggest REIT (Toronto symbol CHP.UN; Cyclical-Growth Payer Portfolio; Manufacturing & Industry sector; Units outstanding: 723.6 million; Market cap: $10.9 billion; Distribution yield: 5.1%; Dividend Sustainability Rating: Above Average; www.choicereit.ca) owns 702 properties, with 65.9 million square feet of retail, industrial, mixed-use and residential space. Investors also benefit from its high 98.0% occupancy rate. George Weston Ltd. (Toronto symbol WN) owns 61.7% of the trust. With the April 2024 payment, the REIT raised your monthly distribution by 1.4%. The new annual rate of $0.76 yields a high 5.1%. Its payout ratio is a moderate 74.4%. What’s more, the REIT’s units currently trade at an attractive 14.6 times Choice’s projected 2024 cash flow of $1.03 a unit. Choice Properties REIT is a top pick for 2024. 2024…