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Canadian Apartment Properties Real Estate Investment Trust (CAR.UN)
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InterRent Real Estate Investment Trust (IIP.UN)
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European Residential Real Estate Investment Trust (ERE.UN)
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BSR Real Estate Investment Trust Trust Units (HOM.U)
Q: I am looking for other canadian residential reits to buy with my funds from selling TCN. I think with interest rates topping out and very possibly declining later this year, reits are a very good, safe place to invest. Can you suggest any other canadian residential reits that have good upside from here and give a decent dividend? I am thinking of ERE as well as HOM. Any comments?
5i Research Answer:
Two other REITs we like are CAR.UN and IIP.UN which play into the residential theme, but focus on apartments. CAR.UN pays a distribution yield of 3.04% and IIP.UN pays a distribution yield of 2.84%. Although the yield is smaller, we like the updise potential for both these names, while they are both a bit larger than HOM.UN as well. ERE.UN is a smaller name while also operating in Europe which creates more risks compared to the other options listed. We think KMP.UN and BEI.UN could also be good options today.