Investing

Best REIT at current prices

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  • Jul 19th, 2019 10:36 pm
Deal Addict
Apr 27, 2015
3051 posts
1745 upvotes
Mississauga

Best REIT at current prices

In your opinion , what is currently the best REIT? REIT that has good yield, reasonable and stable AFFO payout?
"All animals are equal but some animals are more equal than others" George Orwell
77 replies
Deal Fanatic
Feb 15, 2006
9183 posts
3861 upvotes
Toronto
You pay more tax for REITs with distributions. There are several good dividend yielding stocks at good prices lately, e.g. KEY, EMA, ADN, etc.
Deal Addict
User avatar
Nov 4, 2016
1880 posts
2185 upvotes
Arrgh wrote: You pay more tax for REITs with distributions. There are several good dividend yielding stocks at good prices lately, e.g. KEY, EMA, ADN, etc.
Not with TFSA. =)
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Deal Fanatic
Feb 15, 2006
9183 posts
3861 upvotes
Toronto
CCHIPSS wrote: Not with TFSA. =)
True. Inside TFSA or RRSP it doesn't matter. But most people have limited room inside registered instruments. Outside registered accounts, before thinking of REITs, better look at the tax advantages of dividends.
Newbie
Mar 3, 2011
65 posts
27 upvotes
If a high portion of the distribution is ROC, it's not a bad idea to hold it in unregistered account.
Deal Fanatic
Nov 9, 2013
5877 posts
7458 upvotes
Edmonton, AB
I like BPY.UN.
Last edited by treva84 on Nov 7th, 2018 5:50 pm, edited 1 time in total.
Buy quality. Keep calm and go long (and note to self STOP SELLING).
Deal Addict
Apr 27, 2015
3051 posts
1745 upvotes
Mississauga
Arrgh wrote: You pay more tax for REITs with distributions. There are several good dividend yielding stocks at good prices lately, e.g. KEY, EMA, ADN, etc.
I need it for TFSA. Sold AX.UN after they cut dividends and want to replace with another REIT. There are too many REITs and I just wanted to hear suggestions before I start looking into financial reports... Couple of years ago I wanted to buy AAR.UN and INO.UN, but instead bought DRG.UN , now looks like AAR went private.... will take a look at INO
"All animals are equal but some animals are more equal than others" George Orwell
Deal Fanatic
Nov 9, 2013
5877 posts
7458 upvotes
Edmonton, AB
gibor365365 wrote: I need it for TFSA. Sold AX.UN after they cut dividends and want to replace with another REIT. There are too many REITs and I just wanted to hear suggestions before I start looking into financial reports... Couple of years ago I wanted to buy AAR.UN and INO.UN, but instead bought DRG.UN , now looks like AAR went private.... will take a look at INO
I rolled my AX.UN earlier this year into BPY.UN - I got lucky and sold well before the distribution cut.

I liked AX.UN as it gave some US exposure to commercial real estate. BPY.UN provides international exposure and they have some of the highest quality commercial properties in their portfolio. They are also trading at a meaningful discount to NAV (which is probably about $27 CAD).
Buy quality. Keep calm and go long (and note to self STOP SELLING).
Deal Addict
Apr 27, 2015
3051 posts
1745 upvotes
Mississauga
I liked AX.UN as it gave some US exposure to commercial real estate.
it's a major reason I held it .... thanks for suggestion, will take a look at BPY.UN
"All animals are equal but some animals are more equal than others" George Orwell
Deal Addict
Sep 2, 2009
2978 posts
3020 upvotes
Ottawa
gibor365365 wrote: There are too many REITs and I just wanted to hear suggestions before I start looking into financial reports.
Are you open to ETFs? XRE and the likes. I usually go individual stocks unless I can't decide on or find the best deal.
Deal Addict
Feb 26, 2017
2901 posts
4579 upvotes
I have NVU.UN on my watch list. Its an apartment reit with a 6.3% yield that and trades at a lower valuation than other canadian apartment reits. Payout ratio is 95%.
Deal Addict
Jun 13, 2009
1209 posts
983 upvotes
Toronto
gibor365365 wrote: it's a major reason I held it .... thanks for suggestion, will take a look at BPY.UN
BPY.UN pays US distributions that are subject to withholding taxes, even if held in a TFSA. Google it for more info. I don't fully understand the way it works so I can't offer any more information.
Deal Addict
Feb 26, 2017
2901 posts
4579 upvotes
Jruuu wrote: BPY.UN pays US distributions that are subject to withholding taxes, even if held in a TFSA. Google it for more info. I don't fully understand the way it works so I can't offer any more information.
They Brookfield companies besides the parent BAM are limited partnerships with their headquarters in Bermuda. If its held in your RRSP you don't pay the withholding tax (it doesn't matter if you own the stock on the nyse or tsx).
Deal Addict
Apr 27, 2015
3051 posts
1745 upvotes
Mississauga
Jruuu wrote: BPY.UN pays US distributions that are subject to withholding taxes, even if held in a TFSA. Google it for more info. I don't fully understand the way it works so I can't offer any more information.
From what I understand, if you hold US stock (trades on NYSE), you pay dividend withholding tax when holding TFSA, but if it's Canadian stock that pays dividends in USD - you don't pay dividend withholding tax, for example , I hold TRI that pays dividends in USD for ages, and I don't pay dividend withholding tax. The same should apply for BPY.UN ... Does anybody hold BPY.UN in TFSA? Maybe for UNs rules are different.
"All animals are equal but some animals are more equal than others" George Orwell
Deal Addict
User avatar
Nov 4, 2016
1880 posts
2185 upvotes
BTW I own 8 REITs right now. They are:

MRG.u
IIP.u
SMU.u
SOT.u
BTB.u
CHP.u
CAR.u
TNT.u
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Deal Fanatic
Feb 1, 2006
9645 posts
911 upvotes
Muskoka
I'll second BPY, it is my largest equity holding, followed by FTS and RY. I love solid dividend payers that you buy and hold for life. BPY is one of these, and it is on sale right now.
Deal Addict
Apr 27, 2015
3051 posts
1745 upvotes
Mississauga
Just FYI.... Called today to CIBC IE, at the beginning rep told that I would be charged Dividend withholding tax , but he cannot tell for sure.... I asked him to check other clients TFSA accounts that hold BPY.UN, he checked 5 accounts and none of then was paying withholding tax. So, may buy it into TFSA
"All animals are equal but some animals are more equal than others" George Orwell
Deal Addict
Dec 28, 2007
1567 posts
1264 upvotes
No withholding tax for me on my BPY holdings held in my TFSA. Although it's possible that they change the composition of the distributions such that a portion would be subject to withholding tax.

I bought BPY.un on the Canadian side of the TFSA and moved it to the US side so that the distributions stay in USD.

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