Sunday, 19 March 2017
Recent Buy: Canadian Apartment REIT
A recent purchase of mine this year, and a new position added to my portfolio is Canadian Apartment (CAP) REIT, which goes by the Toronto Stock Exchange ticker CAR.UN. This is now my third REIT position that I hold and rounds out that trio nicely. My other two REIT's are Dream Office REIT, which focuses on large office buildings and commercial spaces, RIOCAN REIT which operates retail spaces, plazas and malls and now CAP REIT which covers residential properties, apartment buildings and manufactured home communities.
In mid January 2017 I initiated my position with 38 shares at a price of $31.28, and a monthly distribution of $0.1042, yielding 4%. Providing me with an additional monthly income of $3.96, $47.5 per year. Currently the stock is now trading at $32.11.
While CAP REIT is generally considered a lower yielding REIT than others in the space, it has a good history of steadily increasing its distribution year over year. Since every year they are able to increase the rent of their properties, their cash flow is steady and safe.
From Google Finance
"Canadian Apartment Properties Real Estate Investment Trust (CAPREIT) is a Canada-based open-ended real estate investment trust. CAPREIT's investment objectives are to provide unitholders with long-term, monthly cash distributions; grow normalized funds from operations (NFFO), distributions and Unit value through the management of its properties, acquisitions and financial management, and reinvest capital within the property portfolio. CAPREIT owns and operates a portfolio of multi-unit residential rental properties, including apartments, townhomes and manufactured home communities (MHC) located in and near urban centers in Canada. CAPREIT owns interests in approximately 46,790 residential units, consisting of over 40,501 residential suites and approximately 30 MHC's, consisting of approximately 6,290 land lease sites. CAPREIT owns leasehold interests in approximately 15 properties located in the Greater Toronto Area. The leases mature between 2033 and 2037."