These REITs offer growth and high income

Article Excerpt

While higher interest rates have increased the appeal of bonds and hurt REITs in the past year, Choice Properties and RioCan remain excellent ways for investors to earn income. We see both as buys. CHOICE PROPERTIES REIT, $12.95, is a buy. Canada’s biggest REIT (Toronto symbol CHP.UN; Units o/s: 327.9 million; Market cap: $9.4 billion; TSINetwork Rating: Average; Dividend yield: 5.9%; www.choicereit.ca) owns 705 retail, industrial, office space and residential properties with 66.1 million square feet of gross leasable area. Its occupancy rate is a high 97.9%. George Weston Ltd. (Toronto symbol WN) owns 61.7% of the trust. Choice’s rental revenue rose 4.1% in the quarter ended March 31, 2024, to $338.0 million from $324.7 million a year earlier. That’s due to the completion of new projects and rent increases at its retail and industrial properties. As well, cash flow increased 8.3%, to $0.26 a unit (or a total of $187.2 million) from $0.24 a unit (or $176.9 million). The REIT is now developing 14 new properties at…