-
Canadian Apartment Properties Real Estate Investment Trust (CAR.UN $37.19)
-
Choice Properties Real Estate Investment Trust (CHP.UN $14.67)
Q: As I do my year-end review, I am always looking for moves that can add potential ZIP for next year while being mindful of my senior years (old). My portfolio is well established in weighting and sectoral positioning. Chp.un has been in it since 2020 and has given me a 16% return (x div). It seems to have a muted outlook for 2026. What is your view on a switch to the somewhat out-of-favour car.un. At $37.80 ish and estimated up to $48 range next year, it seems like a solid move for growth potential. Not too worried about the minor div variance here. As always thank you for your service.
5i Research Answer:
CAR is focused on apartments and we might be less confident in the ability for rental rates to move higher materially in the next year or two so would expect growth to be a bit more muted in general. On CHP, it is a bit more diversified with the retail exposure but also some industrial exposure. It also has higher expected top-line growth rates as well. We don't see switching from CHP to CAR as a clear win here.