These REITs are re-focusing their portfolios

Article Excerpt

The work continues for these two REITs as they unload their less-promising properties to focus on their main assets. That sets them up for future gains and lets them maintain their current payouts. ALLIED PROPERTIES REAL ESTATE INVESTMENT TRUST $17 is a buy. The REIT (Toronto symbol AP.UN; Cyclical-Growth Dividend Payer Portfolio, Manufacturing sector; Units outstanding: 128.0 million; Market cap: $2.2 billion; Distribution yield: 10.6%; Dividend Sustainability Rating: Above Average; www.alliedreit.com) owns 198 office buildings and eight properties under development, mainly in major Canadian cities. Its occupancy rate is 87.0%. Allied last raised your monthly distribution with the January 2023 payment by 2.9%. The annual rate of $1.80 a unit yields a very high 10.6%. The REIT has increased its stake in two office towers under development—one in Toronto and one in Vancouver—by buying some of the stake of partner Westbank Corp. As a result, Allied now owns 95% of the Toronto building, and 90% of the Vancouver project. In exchange, the REIT cancelled $198.0 million in…