Saturday, 9 December 2017

Recent Buy: Canadian Apartment REIT

   
 
    Beginning of November, 2017 I bought an additional 72 shares of CAP REIT at $34.6.
With its monthly distribution of $0.10667 per share, I will receive $7.68 more per month, $92.16 per year. With my prior shares my total position in CAP REIT is now 110 shares, with a monthly distribution of $11.7 and $140.80 annually.

    My rationale for the purchase is that while CAP REIT has a lower than average dividend yield for a REIT at around 4% at the time of purchase, they have proven to have a good track record for increase it as they increase their rental property rates. The REIT is also consistently working on bringing additional apartment and townhouse complexes online, as well as expanding into the Netherlands.

    I like to think of them as my pseudo, slowly growing 'rental property'.  :)





Description of Canadian Apartment REIT

"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."

4 comments:

  1. It is an interesting low yield for a REIT. Considering their EPS and Dividend per share ... they definitely look safe. Has gone up 113% in 10 years. Very nice purchase.

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    Replies
    1. Yeah it is certainly more on the income/dividend growth side of most REITs and has a lower than average payout ratio for a REIT as well. They focus a lot more on growth opportunities.

      Thanks for stopping by and posting.

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  2. Thanks for sharing your recent buy. Nice point of view on low distribution rate.

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