Their new developments cut your risk

Article Excerpt

Choice Properties and RioCan continue to build new residential and industrial properties to cut their exposure to the retail industry. Their new properties—along with store reopenings as the pandemic eases—should help both REITs raise their distributions in the next few years. CHOICE PROPERTIES REIT $14 is a top pick for 2021. Canada’s biggest REIT (Toronto symbol CHP.UN; Cyclical-Growth Payer Portfolio; Manufacturing & Industry sector; Units outstanding: 722.7 million; Market cap: $10.1 billion; Distribution yield: 5.3%; Dividend Sustainability Rating: Above Average; www.choicereit.ca) creates value for investors through its 730 properties of retail, industrial and office space. Investors also benefit from its high 97.0% occupancy rate. George Weston Ltd. (Toronto symbol WN) owns 61.8% of the trust. Choice pays monthly distributions of $0.061667 a unit. The annual rate of $0.74 yields a high 5.3%. Still, the total dividend payout was just 80.6% of its cash flow in 2020. Supermarket operator Loblaw (also controlled by George Weston Ltd.) accounted for 55.3% of Choice’s rental revenue in…