Thursday, March 15, 2018

Real Estate Stocks

If follow 10 REITs. They are all listed below. It would seem that most the Real Estate stocks did better in growth of dividend and Total Return in the past then recently.

If you hold stock for the long term like I do, you will have companies going through bad times. The thing is that if you a diversified portfolio, all your stocks will not be going through tough times at the same time. In different economic situations, some companies will thrive and some will have a tough time.

# Name TSX Symbol Other Symbol
1 Allied Properties REIT TSX AP.UN OTC APYRF
2 Artis REIT TSX AX.UN OTC ARESF
3 Canadian Real Estate TSX REF.UN OTC CRXIF
4 First Capital Realty TSX FCR OTC FCRGF
5 FirstService Corp. TSX FSV NASDAQ FSV
6 Granite REIT TSX GRT.UN NYSE GRP.U
7 H & R REIT TSX HR.UN OTC HRUFF
8 Melcor Developments Inc. TSX MRD OTC MODVF
9 RIOCAN REIT TSX REI.UN OTC RIOCF
10 SmartCentres REIT TSX SRU.UN OTC CWYUF


The next chart gives you the rate of dividend growth per year for the periods shown. If the period is shorter than the heading I put this information in the "To Year" column. For example for Allied Properties I have growth per year for years 5, 10 and 14. Over the past 5 years dividends have grown at 2.39% per year , over 10 years at 2.04% per and over 14 years at 4.51% per year.

With the exception of Granite REIT, the longer durations on most companies have higher dividend growth rates. For example, RIOCAN REIT's dividends grow by 5.30% over the past 23 years, but only 0.43% per year over the past 5 years. That is because it has not had dividend increases lately.

REIT To Yr DG 5 DG 10 DG 15 DG 20 DG 25
Allied Properties REIT 14 2.39% 2.04% 4.51%
Artis REIT 11 0.00% 0.28% 3.42%
Canadian Real Estate 23 4.74% 3.45% 2.97% 2.98% 5.03%
First Capital Realty 22 1.46% 1.21% 2.43% 2.85% 7.37%
FirstService Corp. 3 10.71%
Granite REIT 14 24.08% 13.14% 13.46%
H & R REIT 20 3.27% 0.07% 0.94% 3.60%
Melcor Developments Inc. 25 3.71% 4.81% 12.69% 14.87% 13.56%
RIOCAN REIT 23 0.43% 0.60% 1.64% 3.04% 5.30%
SmartCentres REIT 13 1.39% 1.21% 1.39%


The next chart gives the total returns per year for the shown time periods. Total Return includes both capital gains and dividends. Here again, if I do not have a full period of data I put the last period covered in the "To Year" column. For Allied Properties I have Total Returns for the periods of 5, 10 and 14 years. Over the past 14 years Allied Properties have a Total Return of 15.30% per year.

Here again most of the REITs had better past growth. The exceptions are Granite REIT and First Service Corp (which just started dividends 3 years ago.) For example, Canadian REIT grew by 16.28% per year over the past 23 years, but only 5.20% over the past 5 years.

REIT To Yr TR 5 TR 10 TR 15 TR 20 TR 25
Allied Properties REIT 14 9.02% 12.37% 15.30%
Artis REIT 12 6.09% 4.78% 18.83%
Canadian Real Estate 23 5.20% 9.26% 15.39% 13.20% 16.28%
First Capital Realty 22 8.18% 6.31% 13.24% 10.11% 13.45%
FirstService Corp. 21 37.92% 15.28% 14.37% 19.51% 21.48%
Granite REIT 14 12.53% 3.87% 6.79%
H & R REIT 20 3.51% 6.43% 10.90% 12.09%
Melcor Developments Inc. 25 6.33% 0.64% 17.35% 20.86% 17.21%
RIOCAN REIT 23 2.92% 7.20% 12.88% 13.12% 21.44%
SmartCentres REIT 18 9.32% 6.88% 54.59% 47.50%


I also thought it would be handy to show the last dividend increase and this is in the chart below.

REIT Last Inc Inc % Comment
Allied Properties REIT 2018 1.96% No increase in 2017, but one in 2016
Artis REIT 2009 2.86% No increase since 2009
Canadian Real Estate 2018 2.16% Increases since 2002
First Capital Realty 2014 2.38% No increases since 2014
FirstService Corp. 2018 10.20% Paid in US$
Granite REIT 2018 4.60% Big changes occurred in 2012
H & R REIT 2017 2.20% Increases only 3 of last 5 years
Melcor Developments Inc. 2017 8.30% After 2016 Decrease of 20%
RIOCAN REIT 2018 2.13% First since 2013
SmartCentres REIT 2017 2.94% Increases only 3 of last 5 years, last 3


Lastly I thought information on their current dividend and yield might be helpful. See the chart below.

REIT Price Div Yield
Allied Properties REIT $41.47 $1.56 3.76%
Artis REIT $13.72 $1.08 7.87%
Canadian Real Estate $50.31 $1.87 3.72%
First Capital Realty $20.19 $0.86 4.26%
FirstService Corp. $70.36 $0.54 0.77%
Granite REIT $50.50 $2.72 5.39%
H & R REIT $20.35 $1.38 6.78%
Melcor Developments Inc. $13.90 $0.52 3.74%
RIOCAN REIT $23.85 $1.44 6.04%
SmartCentres REIT $29.61 $1.75 5.91%


There is a site called http://reitreport.ca/canadian-reits/ hat list all Canadian REITs and their profile. The Profile basically says what the REIT invests in. On the Real Property Association of Canada you can find a definition of a REIT.

On my other blog I wrote yesterday about Richelieu Hardware Ltd (TSX-RCH, OTC-RHUHF)... learn more. Tomorrow, I will write about Enbridge Inc. (TSX-ENB, NYSE-ENB)... learn more on Friday, March 16, 2018 around 5 pm.

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

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