Tag Archives: TSX:PLZ.UN

My Rental Income from 7 Canadian REITs

Many people like to receive rent from properties. On the other hand, I don’t want to manage properties or spend time keeping good relationships with tenants. Instead, I like to sit back and receive passive rental income from my Canadian REITs.

My Canadian REIT portfolio of 7 companies that make up roughly 12% of my dividend portfolio. Yet, they contribute close to 22% of my portfolio income.

I first go over my highest yielding Canadian REITs that offer income of 9% or higher. Then, I talk about the less risky REITs with yields of 4-6%.

By analyzing my Canadian REIT income portfolio, we can probably learn something. Here it goes!

REITs Provide Good Income

The first thing to note is that my Canadian REIT portfolio generates 22% of the income in my dividend portfolio even though it only makes up 12% of my portfolio value. That seems to indicate that distributions is a major part of REIT returns.

Well, it’s true that many REITs, including 4 of my REIT holdings yield 9% or higher right now.

Canadian REIT Portfolio Allocation

I analyzed my REIT portfolio in terms of their allocation according to market value, as well as income allocation. And I will talk about each Canadian REIT later on in the article as well.

My Canadian REIT allocation by value and by income

Source: Author

You’d notice that 28% of my Canadian REIT portfolio is Plaza Retail REIT (TSX:PLZ.UN), and it also contributes to 22% of my Canadian REIT income. I’m comfortable with the concentration in Plaza Retail REIT because of its track record and growth potential.

Northview Apartment also has a good track record of maintain distributions. However, its properties are mostly located in resource provinces. So, it is a good income play, but should only be bought when its yielding around 9% at historical highs.

The other Canadian REITs add diversification to the REIT income stream. Looking at the industry or asset class allocation, it looks pretty balanced with residential REITs making up almost one-third of the pie. That’s fine because everyone needs to live somewhere. If you’re not buying, you’re renting. Read More

Plaza Retail REIT: Stock Analysis

This article was last updated on June 29, 2016.

About Plaza Retail REIT

Plaza Retail REIT logo

Plaza Retail REIT (TSX:PLZ.UN) is based in Fredericton, New Brunswick in Eastern Canada. It rents out retail properties such as strip plazas, single-use properties, and enclosed malls. Plaza’s unique business strategy drives its business via value-add opportunities to develop and redevelop retail real estate mainly in Eastern Canada.

Plaza Retail maybe a new name to you because it is a small REIT with a market capitalization of $473 million. On the Plaza Retail website, it states “Management owns a significant stake in the company.” So, the management’s interests are aligned with unitholders’ interests.

The REIT pays out monthly distributions that can be reinvested at a 3% discount if you enroll in the divistribution reinvestment plan. At $4.87 per unit, it yields 5.34% .

Retail Properties

At the end of Q1 2016, the REIT had interests in 302 properties, totaling 7.1 million square feet. Over half (exactly 51.9%) of Plaza Retail’s gross leasable area (GLA) is in Québec and New Brunswick. That said, as shown in the “Summary of Properties”, the GLA between the two provinces were diversified across 147 properties.

Plaza Retail REIT gross leasable area breakdown

Source data: Plaza Retail REIT Q1 2016 Report – p2

Plaza Retail REIT Properties Summary

Source: Plaza Retail REIT Q1 2016 Report – p2

Plaza Retail primarily leases to national retailers (90.5% of tenancy mix) with a focus on the consumer staples sector. So, the Target exit from Canada and the Future Shops to Best Buy rebranding has had little impact on Plaza Retail. Read More

Canadian Dividend Stocks to Buy Now: March 2015

Dividend stocks are attractive because they pay an income whether the market is going up, sideways, or even going down. Here are some dividend stocks which you can consider. The stocks I’m about to mention pays 115% to 165% more income than the index iShares S&P/TSX 60 Index Fund (TSE:XIU), which pays out a yield of 2.6%.

High Dividend Canadian Companies

This list shows the current yields, and I believe are good starting yields to start buying into these companies if they are a fit for your portfolio.

Buy Northern Property REIT for Income and Capital Gains

Northern Property REIT logo

Northern Property REIT (TSX:NPR.UN) is a real estate investment trust which owns housing properties, such as rental apartments and town homes. It collects rent from a diversified portfolio of properties located across seven provinces in Canada.

Northern Property REIT has paid a monthly distribution for 12 years and have never reduced it. So income investors can have a peace of mind owning it for current income. Right now, it pays a monthly distribution of $0.1358 per unit with a yield of 6.9%.

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