New properties will boost cash flow

Article Excerpt

CHOICE PROPERTIES REIT $13 is top pick for 2023. Canada’s biggest REIT (Toronto symbol CHP.UN; Cyclical-Growth Payer Portfolio; Manufacturing & Industry sector; Units outstanding: 723.6 million; Market cap: $9.4 billion; Distribution yield: 5.8%; Dividend Sustainability Rating: Above Average; www.choicereit.ca) owns 702 retail, industrial, office space and residential properties. George Weston Ltd. (Toronto symbol WN) owns 61.7% of the trust. With the April 2023 payment, the REIT raised your monthly distribution by 1.4%. The new annual rate of $0.75 a unit yields 5.8%. Choice is now developing 18 new properties: 6 retail, 2 industrial and 10 residential projects. In all, it will spend $397.7 million. Those new properties should help lift the REIT’s 2023 cash flow by about 3% to $0.99 a unit; the units currently trade at 13.1 times that forecast. Choice Properties REIT is a top pick for 2023. 2023. …