Meet The REIT Canadian Dividend Aristocrats

|
Includes: APYRF, BOWFF, CDPYF, GRP.U, NPRUF
by: Dividend Earner

Did you ever think a REIT could be included in the Canadian Dividend Aristocrats list? Considering we identify REITs as an income investment, we don’t usually expect dividend growth. However, there are currently 6 REITs in the Canadian Dividend Aristocrats list and 2 Canadian Dividend Achievers amongst that list.

Canadian Dividend Aristocrat Rules

  • The company’s security is a common stock or income trust listed on the Toronto Stock Exchange and a constituent of the S&P Canada BMI.
  • The security has increased ordinary cash dividends every year for five years, but can maintain the same dividend for a maximum of two consecutive years within that five year period.
  • The float-adjusted market capitalization of the security, at the time of the review, must be at least C$ 300 million.
  • For index additions, the company must have increased dividend in the first year of the prior five years of review for dividend growth. This rule does not apply for current index constituents.

Please note that the official Canadian Dividend Aristocrats list is updated monthly.

Canadian Dividend Aristocrat REITs

The list is sorted by market capitalization from largest to smallest at the time of writing. While they grow their dividends, don’t expect double digit growth. It’s also important that you understand the difference between REIT distribution and dividend as it has potentially different tax implications.

Canadian Apartment Properties REIT (OTC:CDPYF)

This REIT is a pure play on apartment rental as opposed to shopping malls or offices. It boasts a 14 year streak of distribution increases. Below is the highlight of their geographical business location. Depending on their expertise, expending outside Canada is either going to be great or a curse. Time will tell as not all businesses can expend outside of Canada with success.

Source: 2016 Financial Report

REIT Fact Sheet

  • Ticker: TSE:CAR.UN
  • Market Capitalization: $4.58 B
  • Industry: REIT Residential
  • Distribution: $1.28
  • Distribution Yield: 3.81%

With 20 years of performance, and coming off a record 2016 year, the residential sector has done well for this REIT.

Source: CAPREIT Investor Relation Presentation

Canadian REIT

CREIT is an owner, developer and manager of a high-quality real estate portfolio. Canadian REIT has a strong business formula followed by results. In controlling the end-to-end process of their assets, through acquisition, finance and operation, they have grown their funds from operations (FFO) consistently as you can see below. The growth in FFO is allowing CREIT to grow their annual distribution, which highlights a sound business model.

Source: Investor Presentation May 2017 Source: Investor Presentation May 2017

REIT Fact Sheet

  • Ticker: TSE:REF.UN
  • Market Capitalization: $3.67 B
  • Industry: REIT Diversified
  • Distribution: $1.83
  • Distribution Yield: 3.67%

Allied Properties REIT (OTCPK:APYRF)

With a strong presence in all the major Canadian cities and metropolitan areas, Allied Properties REIT boasts a 17% annual average return since 2003. That’s impressive for a REIT when you look at the performance of the S&P TSX. Clearly there is more than just income with this REIT.

Source: Investor Presentation – March 2017 Source: Investor Presentation – March 2017

The growth appears to be fueled by the acquisition growth in assets by Allied Properties. Their top tenants include many technology companies

Source: Investor Presentation – March 2017

REIT Fact Sheet

  • Ticker: TSE:AP.UN
  • Market Capitalization: $3.21 B
  • Industry: REIT Office
  • Distribution: $1.53
  • Distribution Yield: 4.05%

Granite REIT (NYSE:GRP.U)

Strategically located in Canada, the U.S. and Europe with a 99% occupancy rate, Granite REIT went through a transformation to diversify, and it appears to be paying off. It was able to reduce the number of properties while increasing value.

Source: Investor Presentation March 2017

The changes the company put in place also did wonders to their FFO and distribution ratios, giving them room for distribution growth down the line.

Source: Investor Presentation March 2017

REIT Fact Sheet

  • Ticker: TSE:GRT.UN
  • Market Capitalization: $2.39 B
  • Industry: REIT Industrial
  • Distribution: $2.60
  • Distribution Yield: 5.14%

Boardwalk REIT (OTCPK:BOWFF)

Boardwalk REIT is one of the largest Canadian multi-family REITs with over 33,000 apartment units across 200+ properties in 4 provinces. When management owns a large portion of the company, you can expect they are vested in the business. The only possible challenge is the oil-focused location in the short term. Still, the company is able to grow their FFO and distributions.

Source: Investor Presentation 2016 Q4 Source: Investor Presentation 2016 Q4 Source: Investor Presentation 2016 Q4 Source: Investor Presentation 2016 Q4

REIT Fact Sheet

  • Ticker: TSE:BEI.UN
  • Market Capitalization: $2.29 B
  • Industry: REIT Residential
  • Distribution: $2.25
  • Distribution Yield: 4.57%

Northview Apartment REIT (OTC:NPRUF)

NorthView Apartment REIT is a new REIT formed in 2015 by merging Norther Property REIT and True North Apartment REIT. Historical data becomes a little difficult to evaluate as it technically has only 3 years under their books according to the financial records.

NorthView Apartment REIT is the 3rd residential REIT on the list making the residential industry worth considering. NVU.UN focuses on apartments in Canada with a large exposure in Northern Canada. With a sustainable FFO payout ratio of 77%, the distribution levels should be safe and predictable.

Source: Investor Presentation May 2017

REIT Fact Sheet

  • Ticker: TSE:NVU.UN
  • Market Capitalization: $1.07 B
  • Industry: REIT Residential
  • Distribution: $1.63
  • Distribution Yield: 7.62%

Disclaimer: At the time of writing, Dividend Owner has no positions in the REITs mentioned.

Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.

About this article:

Expand
Want to share your opinion on this article? Add a comment.
Disagree with this article? .
To report a factual error in this article, click here