3 Real Estate Stocks to Buy Now for Impressive Dividend Income
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REITs, or real estate investment trusts, are popular investment options among dividend investors. And it’s easy to see why — these real estate stocks typically post above-average dividend yields, and several of them have handed out steadily growing earnings for decades.
Of the various real estate stocks on the Toronto Stock Exchange, I think these three are worth grabbing right now.
Main real estate values: Boardwalk REIT
Based in Alberta Boardwalk REIT (TSX:BEI.UN) is a company that has come under pressure in recent years. However, oil prices are rebounding and many new technology companies are announcing their expansion into the Edmonton and Calgary markets. This changed the outlook for Boardwalk’s NOI.
I think the occupancy trajectory for this REIT is solid and should improve in line with the company’s projections (up to 97% this year). For investors looking for REITs with upside potential, this is a great way to gain exposure to this sector.
Of course, this REIT is not without risk. However, those bullish on the Western Canadian economy may want to take a look at this real estate stock.
Dream Industrial REIT
Dream Industrial REIT (TSX:DIR.UN) focuses on the “last mile” urban logistics space. And as consumers look to a sustained increase in online shopping over the long term, this direction seems well suited to meet the growing needs of e-commerce distribution.
As a result, Dream Industrial is one of the top real estate stocks I’m watching right now. On a constant currency basis, the REIT’s comparable property NOI increased 7.5% year over year in the last quarter. Pricing power remains in historically tight supply and demand conditions.
With European interest rates still anchored well below those of North America, this REIT enjoys a relative advantage when it comes to borrowing. Therefore, I think this 4.3% yielding REIT is something to think about right now.
Storage Vault Canada
The investment thesis for Storage Vault Canada (TSX:SVI) is based on two main principles. First, a lucrative cash flow profile with high growth and low maintenance capital. And second, the ability to accretively consolidate the industry’s ownership base.
The company’s third quarter results reflected this strong growth cash flow profile: same property revenue increased 23% year-over-year and free cash flow or AFFO increased 46%. %.
StorageVault leases are monthly in nature. This allows it to increase rents in response to the current inflationary environment much faster than traditional property types with longer term leases.
Canada has about 70% less storage space per capita than the United States. This is a key factor underpinning StorageVault’s strong rental growth profile. Also, this free cash flow is used for property consolidation within the industry.