Thinking REITs

Some people love ’em, some people hate ’em. Me? I like them and can definitely see how they can have their place. I’ve invested in a few REITs and have a few on DRIPs right now. Hoping to have a few more REITs on DRIPs in the future.

The major benefit I can see from REITs is the steady monthly income. They’re fairly dependable in that regard, but very few REITs provide dividend growth or even capital appreciation – they may not be for everyone in that regard.

I made the majority of my REIT purchases around April, I knew I wanted to invest in the market but was worried about my job, as I only started this new job in January and was still on probation. Hence, REITs fit my risk profile (for the most part) and when fit in with a more diverse portfolio, would be able to help carry my debt burdens or monthly expenses if *knock on wood* I ever needed it.

Thankfully, I haven’t had to tap this income source, a fact I’m extremely grateful for given the current world situation.

Some REITs I’ve been paying a lot of attention to lately are Choice Properties, CT REIT, Allied Properties, Summit Industrials REIT and Granite REIT and Plaza REIT.

Allied Properties

Allied Properties is primarily known for it’s offices, but they also have expanded into data centres, which is what drew me to them. I only own a few, but am looking to add positions to this over time, as I like their data centre play.

Choice Properties

Choice Properties is owned by Loblaws, a major Canadian grocery chain. As such, I’d consider this REIT to be defensive and safe. We have a Choice Properties plaza down the street, anchored by a major grocery store (which had a full parking lot throughout the pandemic, including shutdown), and recently constructed 2 bank branches (which always had lineups throughout the pandemic). I don’t have enough to DRIP this yet, but would like to initiate a DRIP on this when the time is right.

CT REIT

Owned by Canadian Tire, this REIT is anchored by their retail stores and gas stations. I’m not quite sure how I feel about their retail aspect as I have a lot of retail-based REITs already, but they are one of the few REITs which has regularly grown dividends. We have Canadian Tire down the street, and they’ve been very busy since lockdowns have eased.

Summit Industrials

Summit owns and operates warehouses. We may not have much of a tech sector here in Canada, but that doesn’t mean I can’t take advantage of tech trends by choosing industries and businesses adjacent to digital trends!

Granite REIT

Similar to Summit, but much larger, Granite owns and operates logistics, warehouses and industrial properties across North America and Europe. I don’t own Granite yet, aspire to have them in my portfolio in the future.

Plaza REIT

Plaza operates open-air plazas and are mostly found on the east coast. Their plazas are typically anchored by Shopper’s Drug Mart, and as such I consider them to be a fairly safe and defensive REIT. They’re also known for growing their dividend!

I’m on the hunt for a few more REITs, particularly in the data centre space or in residentials. If you have any recommendations, I’m always open to listen!