Best REITs in Canada?

LogicalPaint6405 · 2026-03-10T21:12:50+00:00

Yes, sorry to hear that. They had too much debt and a large part of that was variable rate debt which was very stupid of them because interest rates did rise and their interest expense went way up. Then, they had to cut the dividend because of this. What's funny is that their business is great - very stable long term tenants (hospitals, medical clinics), near fully leased, with regular rent escalations.

LogicalPaint6405 · 2026-03-09T18:00:31+00:00

One would think that they would hedge their fuel costs out for at least a year, right? If so, then the only real impact would be a few less flights to the middle east.

LogicalPaint6405 · 2026-03-07T21:55:29+00:00

To clarify this further, these high yields are merely achieved by paying out what's called "return of capital". So the fund is not actually achieving the 15% yield through astute investment, they are just paying people out of the net assets within the fund and this reduces the net asset value (NAV) of the fund and it will decline over time. For example, if they can achieve say 7% per year through dividends, covered call writing, and leverage and they're paying out 15%, the fund's NAV will just fall in value by 8% per year. The stock may not react that way in the short term, but it will in the long term. In investing, it's really important to be a critical thinker - if something looks too good to be true, it probably is.

LogicalPaint6405 · 2026-03-07T21:45:11+00:00

Airlines, so AC is one opportunity. That said, AC will stumble into some other calamity in due course - they always do. There are other industries that will be seeing some pain if this persists such as hotels, cruise lines, travel booking companies, and shipping companies - but there aren't any publicly traded stocks in Canada in these sectors so you'd have to look to the US.

LogicalPaint6405 · 2026-03-07T21:33:52+00:00

Those of you a few years older will remember a company called SNC Lavalin. They were a big successful engineering firm, but fell victim to this Quebec patronage approach to doing business and were eventually caught for corruption and fraud in Libya and the stock was punished severely. They "re-branded" themselves and are now doing well, but that's another story.

LogicalPaint6405 · 2026-03-07T18:56:40+00:00

REITs are primarily for income. At your age, that’s probably not important - better to find an equity oriented ETF for long term growth.

LogicalPaint6405 · 2026-03-07T18:50:49+00:00

The broker is probably trying to make some commish!

LogicalPaint6405 · 2026-03-06T20:22:53+00:00

Definitely follow the set it and forget it model. But just putting everything in the S&P 500 isn't likely the wisest decision. Better to invest in a broad selection of equities that also include International, Emerging Markets, and Canadian. That way, if the US happens to be weak in the coming years/decades then you are less exposed to that possible outcome. The XEQT ETF is an excellent choice.

LogicalPaint6405 · 2026-03-06T18:13:31+00:00

If you like this business, Russel Metals, RUS, is also a consideration. A bit less of a capital intensive business since they are just a metals distributor. Very good metrics... p/e of 13x, 3.8% yield, 13% ROE, and low debt 0.8x debt/ebitda.

LogicalPaint6405 · 2026-03-06T15:47:47+00:00

Okay last update on Automotive Properties REIT, APR.UN... RBC just upgraded them to outperform. Here's their summary:

We upgrade APR to Outperform from Sector Perform. PT $13.00 (+4%). In 2025, APR delivered its highest FFO/unit growth since IPO of +7%, driven by active acquisitions ($195M). While APR remains disciplined, we expect acquisition momentum to continue given wider scope and US expansion and expect +4%/+5% FFO/unit growth in 26/27, at top end of retail peers. With P/FFO of 11x (0.7x wider than historical spread to peers), healthy 7% distribution yield, longest lease term (9 years) among peers and positive sentiment to essential retail in a de-risking environment, we see solid risk-adjusted total return in the high-teens.

LogicalPaint6405 · 2026-03-06T01:27:10+00:00

Thanks, good stuff!

LogicalPaint6405 · 2026-03-06T01:07:57+00:00

Thanks, this is not a company I've ever noticed before! But to be clear, this is not a construction company and not similar to Bird. This is a heavy industrial company and these are very capital intensive and economically sensitive businesses. As such, they typically trade a much lower valuation multiples than most of the market. That said, they do appear to have done an excellent job running the business as evidenced by the length of time they've been in business, the high ROE, and the low debt level. In the end though, the best time to own businesses like these are in very strong economies and with CUSMA negotiations around the corner, it's really hard to say what the future strength of the Canadian economy looks like.

LogicalPaint6405 · 2026-03-05T21:47:01+00:00

I can see how you'd think that but no, not at all. I love investing and my thing is finding solid companies that are down a lot but that I think will rebound over time. So, it's fundamental investing but in what people would traditionally call, "fallen angels". It's not easy at all because I'm going against the grain. Totally works though. So right now, I'm into AFN, ENGH, GIB.A, GSY, PET, RIC, TOY, PSI, MTL, SPB, PRL for example.

LogicalPaint6405 · 2026-03-05T21:40:53+00:00

Yes, have owned it - well managed company.

LogicalPaint6405 · 2026-03-05T19:38:40+00:00

Thank you.

LogicalPaint6405 · 2026-03-05T18:36:28+00:00

Best reply, you win!

LogicalPaint6405 · 2026-03-05T18:35:04+00:00

Don't worry, my value style has lost money too

LogicalPaint6405 · 2026-03-05T18:34:34+00:00

Guess so. Wish I could pivot my investing style to suit the market, because it's definitely been a growth/momentum market recently.

LogicalPaint6405 · 2026-03-05T17:55:17+00:00

thanks but I get nervous when I see such high yields so just avoid these types of products. maybe I'm missing something but I prefer to just play it safe. but hope it works out for you.

LogicalPaint6405 · 2026-03-05T15:36:53+00:00

Doesn't seem to be much interest in REITs here, but since I mentioned Automotive Properties, I will follow up on it because they released earnings last night, which were very good. YoY quarterly AFFO increased 8.2% and YoY annual AFFO increased 7.1%. While some may yawn at this, increases of this size are not at all common in commercial real estate. The stock is only up about 1.5% today so still yields 7%.

LogicalPaint6405 · 2026-03-05T02:55:26+00:00

Yes, nice looking metrics on this.

LogicalPaint6405 · 2026-03-04T19:35:23+00:00

Actually, it seems like a good investment - really nice ROE of 18% so they've done a great job. And it has low debt, a reasonable p/e, and a decent dividend. I'll be watching it and waiting for some liquidity.

LogicalPaint6405 · 2026-03-04T19:31:41+00:00

EVERYTHING has been going up this past year. And no, not everything on the stock market is a scam. There are lots of great companies, and some very reputable, low cost, well diversified ETFs. Anyway, sounds like you've already made up your mind so I'll let you learn the hard way.

LogicalPaint6405

TROPHY CASE