We remain cautious on US real estate investment trusts because of lofty valuations. But this group encompasses a wide range of business models, from commercial and multifamily properties to telecom assets and data centers. In addition to our existing Portfolio holdings, our survey of the space uncovered two REITs with the right business models, valuations and growth prospects.
The creation of a real estate sector in the S&P 500 validates real estate investment trusts (REIT) as an asset class. But sky-high valuations mean that investors may not want to RSVP to this coming-out party.
US real estate investment trusts have rallied significantly since we last visited the space in late 2013. However, investors can still uncover value in the space if they’re willing to take on additional risk for higher yields.
Although Canadian REITs haven’t matched the dividend growth posted by their US counterparts over the past 18 months, most of these names didn’t slash their payouts to the bone during the financial crisis. Our favorite Canadian REITs trade at undemanding valuations, offer above-average yields and are good buys for patient investors.
Currency headwinds and overblown concerns about rising interest rates have weighed on Canadian real estate investment trusts, giving savvy investors an opportunity to lock in elevated yields on the industry’s highest-quality names. Here are our top picks.
The growing popularity of streaming video, not to mention cloud-hosted business services and the corporate world’s love affair with data collection and analytics, continues to drive exponential growth in Internet traffic and demand for reliable storage. We delve into the brick-and-mortar backbone of Big Data and find an unloved high-yielder with plenty of potential.
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