Today I would like to talk about a special kind of investment that I will ALWAYS have in my portfolio. I feel that reits are the next best thing to owning actual real estate. The best part about reits is that they can be a very diverse investment. Different kinds of reits you can get are Retail, residential, office, healthcare and mortgage(and the .UN after the ticker stands for Trust Unit). There are SO many to choose from so you will need to do some very good due diligence and research to decide what direction you want to go in.
Now with the whole Covid-19 situation going on, reits are probably one of the WORST investments you could get into haha (more of a nervous and sad laugh). Think about it, if people aren’t going to work then they cannot pay for their mortgage or rent(although if you are collecting CERB or any government assistance your mortgage/rent and food should be your first priorities). This also goes for business owners who lease or rent facilities for their business or people who rent out space to businesses. This pretty much touches on all forms of reits if you break it down and think about it.
This whole situation has really brought the reit market to big drop and somewhat slow decline. I currently have H&R reit (HR.UN) and it is almost just going sideways which is pretty much the trend of all reits at the moment. They are involved in Residential, office, industrial and retail real estate. According to their website at https://www.hr-reit.com/Home.aspx they have approximately $14.5 billion in assets with 41 million square feet. Their share price is $9.41 as of today and they pay a nice monthly dividend.
One of the few reits that has somewhat gotten a positive bounce is Brookfield Property Partners LP(BPY.UN). They have been on my reit watch list for a while. They are massive with $202 billion in assets under management with 450 million square feet of commercial space. You can find their numbers here https://www.brookfield.com/our-businesses/real-estate. They are a very diverse company and are pretty much involved in all aspects of investing. Their current share price as of today is $13.08 and they pay a quarterly dividend.
The other reit at the top of my list is SmartCentres(SRU.UN). According to their numbers from their site at https://www.smartcentres.com/investing/ they currently have 157 locations comprised of shopping centers, how and high rise condos, town house units, office buildings, self storage facilities, senior housing, town houses and office buildings. This equates to $9.9 billions in assets with 34.1 million square feet of retail space. Their share price as of today is $20.18 and they also pay a monthly dividend.
Although the reit side of investing is taking a beating and I have NO idea when it will bounce back I believe that it will bounce back. Real estate world wide is worth something like $228 trillion. Yes, Trillion. People will need to start going back to work, businesses will continue to pay their rent and businesses will continue to collect rent. I will currently be averaging down my position of H&R but also keeping my eyes on the market. With everyone and everything opening back up again it should be a good sign for reits and people who invest in them.
That is all for today and remember everyone, invest in yourself first.