I own shares in three of the REITs above (H&R, Granite, and Canadian Apartment Properties), but would consider adding a couple of the other companies to provide geographic and industry sector diversification. Included below are my quick thoughts on all ten REITs.
Granite REIT – Concentration risk given Magna is largest client. Gives exposure to auto parts industry at a higher yield than through Magna directly.
Brookfield Property Partners – Cheapest priced REIT with a diversified portfolio of properties managed by the experienced team at Brookfield. Undesirable exposure to retail and office properties given my current REIT holdings.
Smart REIT – Owns a portfolio of shopping centers across Canada, but unlike Riocan, they tend to raise their dividend yearly.
Choice Properties – Exposure to grocery store giant Loblaws at a good initial yield and at a fair price. Downside is the obvious concentration in Loblaws properties.
Boardwalk REIT – Residential housing REIT that has high exposure to the Alberta economy. It is priced relatively cheap compared to other apartment/residential REITs.
CT REIT – The most expensively valuded REIT owns properties used by Canadian Tire which is a strong brand within Canada. Waiting for a better price to buy is advised.
Allied Properties – Own urban office properties and has a record of slowly raising its payout. Waiting for a better entry point is advisable given how close it is trading to its 52-week high.
Canadian Apartment Properties – Diversified exposure to apartment properties across Canada and a growing international portfolio. Currently expensive and a slow growing distribution.
Canadian REIT – Longest record of annual distribution increases of any REIT in Canada at 15 years. Fairly priced but low yield and slow growing distribution.
Are there any Canadian REITs that you would consider buying at their current prices?