After discussing Canadian REITs this Monday, I thought of building the 2011 Top 10 Canadian REITs List for your viewing pleasure (and trading ideas 😉 ). As I have mentioned before I think this is the right time to buy Canadian REITs. While restructuring my portfolio, I am considering adding one or 2 Canadian REITs.
2011 Top 10 Canadian REITs List
Ticker Name Market Cap Price 1Y Return Dividend Yield
REI-U RioCan Real Estate Investment Trust $5,718,694,000.00 $22.13 22.78765 6.23
HR-U H&R Real Estate Investment Trust $2,864,070,000.00 $19.64 28.14426 4.01
CWT-U Calloway Real Estate Investment Trust $2,702,908,000.00 $23.65 30.57648 6.5
BEI-U Boardwalk Real Estate Investment Trust $2,205,670,000.00 $42.00 21.72624 5.45
BOX-U Brookfield Office Properties Canada $2,152,773,000.00 $21.75 N/A 2.92
REF-U Canadian Real Estate Investment Trust $2,092,598,000.00 $31.38 20.80782 4.46
D-U Dundee Real Estate Investment Trust $1,485,945,000.00 $30.23 60.89588 7.24
PMZ-U Primaris Retail Real Estate Investment Trust $1,360,410,000.00 $19.79 32.25037 6.23
CAR-U Canadian Apartment Properties REIT $1,319,796,000.00 $17.24 25.22318 6.26
CUF-U Cominar Real Estate Investment Trust $1,304,211,000.00 $20.84 14.52305 6.88
CSH-U Chartwell Seniors Housing Real Estate Investment Trust $1,199,403,000.00 $8.40 23.04563 6.41
What To Consider When Buying A Canadian REIT
While there are many reasons why the whole sector will go well, it doesn’t meant that you can close your eyes and any stock pick will do. I would say that there are a few points to consider before buying any REIT. Along with regular stock analysis factors to consider, there are a few other things to look at before trading REITs. Here’s my Top Check List on Canadian REITs:
– Types of property held (apartment buildings, golf courses, shopping malls, mortgages, etc)
– Concentration of location (big cities, small cities, overheated market?)
– Stability of distribution (this is what we are looking for, right?)
– Level of depreciation of assets (in Canada, we call it amortization. It is important to understand the accounting distortion when looking at financial statements)
Do You Own Any Canadian REITs on This List?
I don’t for the moment… but building this Top REIT list made me think about it, what about you?
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We need to get into REITs as well. We considered ETF REITS but upon closer examination they seem to be heavily weighted toward 3-4 REITS, so why pay a MER when you can just buy the REIT outright?
Now … getting some money to buy the REITS … 🙂
I own RioCan (REI.UN) and Cominar (CUF.UN)
RioCan is a large corporation across Canada with a decent yield and a 3.2% discount on DRIP.
Cominar is a well managed REIT principally located in the province of Quebec and managed by the Cominar family who owns many shares themselves. It provides a discount of 5% on the DRIP.
I can’t say I have research the others much. I like those for now.
Do Canadian REITs ever buy real estate in the U.S.? Are the even allowed? I wonder if it’s the same for a U.S. REIT like a Cole REIT if they can buy real estate in Canada.
@SPF,
before doing those 2 posts, I didn’t think of including REITs in my portfolio… now it has become quite interesting!
@Passive Income Earner,
thx for the hint on Cominar! didn’t know about their DRIP program.
@Marie,
that is an excellent question… but I don’t know the answer! However, I would rather buy a Canadian REITs managing Canadian Properties and a US REITs managing US properties. It seems that everybody is better on their on field!
Good post. I too, think this is a good time to buy CDN REITs. In a few years, they will all be a few more $$$ higher.
I own REI.UN in my RRSP and HR.UN in my TFSA, a few hundred shares of each.
@Sustainable PF – exactly the reason I don’t own XRE or anything like that. Might as well own the REITs outright, no fees 🙂
Lol nice pic!
I used to own REF in my tfsa 🙂 I might look into getting some REI in my new tfsa.
@ Marie: Yes they can. RioCan, H&R and Chartwell own U.S. properties.
I own RioCan in my TFSA. I think REITs are best held in a TFSA. Any comments?
@ Ahmed,
If you have room in your TFSA, holding REITs is a good move since they pay interest income (which is fully taxable in a cash account).
good move!
I know there are several Medical Reits which trade on the Toronto Exchange but have the large percentage of their holdings in the U.S. Do you have a list of them? I would appreciate receiving same
@ Marie – what do you know about a Cole REIT investment? I’m looking into investing in a non-traded REIT and heard Cole is a good option.
Exhaustive list I must say. Very informative!
1. Usually buyers of reits are buying the yield so I would delete H&R, Brookfield and Canadian from list so as to have income spread giving yields over 6%.
2. Are there any withholding taxes deducted from the dividend for foreign investors ?
do you have the email addresses of these Co’s and would you send thme to me ? Marvin Skjerpen
I was wondering what you guys think if a portfolio is build solely on REITs. I am considering investing ONLY on REITs (say the above 10) for the next 10 years.
Any thoughts?
Also check private REITs… I am invested in Skyline Apartment REIT… 9% distribution and very stable unit price for over 5 years.
…and to correct a previous post, REITs do not pay out in interest and arenot 100% taxable. Most are a combination of capitcal gains/return of capital and income.
@Yycgeek,
the income generated from REITS is great but I find this a bit risky if their business model was to be threatened by economic environment or new legislation..
I wouldn’t buy Canadian REITs until there is a correction, as Canadian real estate has only ever gone up, and that will not continue. Home / condo prices are at 7 to 9x the average Canadian income. Soon houses won’t be affordable for anyone if the trend continues. Think about it. If there is another recession housing prices are sure to fall permanently this time, unlike 2008.
Just my opinion.
Can you name the Canadian REITs which buy more the real estate in the U.S.?
What can you tell me about REITs managed by a BC group called The League? Are they legit?
@Mark,
you would have to do research in each REIT financial statement to find them. it’s a bit of work 😉
@Richard,
I don’t know them much but one of The Dividend Guy Blog readers sent me an email and she met with them. They seem legit and offer a private REIT management fund. You would need to meet with their representative and gather as much info as possible. Then, I suggest you go check with your accountant or financial advisor 🙂