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3 Stocks to Get Real Estate Exposure in Your Portfolio

Andrew Walker
Back view of hugging couple standing with real estate agent in front of house for sale

Alternative assets are a great way to diversify your investments, and real estate is one of the more popular choices.

However, not everyone has the time, expertise, or funds required to directly buy and manage residential or commercial property as part of their investments. One way to get exposure to the real estate sector is to own REITs and stocks that specialize in such assets.

Let’s look at three companies that might be interesting real estate picks for your portfolio today.

Brookfield Property Partners

Brookfield Property Partners (TSX:BPY.UN)(NASDAQ:BPY) is the real estate division of Brookfield Asset Management. The group owns and manages a wide range of real estate covering many sectors around the world, including hotels, office buildings, student housing, storage facilities, and industrial buildings.

The distribution currently offers a yield of 5%, which is pretty good passive return on real estate investment.

RioCan Real Estate Investment Trust

RioCan REIT (TSX:REI.UN) is best known for being Canada’s largest owner of shopping malls. Some of the company’s clients are struggling for survival in the era of online shopping, and a couple of big names have disappeared in recent years. Overall, RioCan has a stable portfolio of tenants, and no single client represents more than 5% of revenue.

The company is working through a transition that will see it sell $2 billion in non-core properties located in secondary markets. The proceeds are being used to shore up the balance sheet, buy back trust units, and fund mixed-used developments that have a combination of retail and residential space.

The monthly payout to investors provides an annualized yield of 5.4%.

Colliers International Group

Colliers International Group (TSX:CIGI)(NASDAQ:CIGI) is a global full-service commercial real estate company. It is the largest player in Canada and was recently named as one of the country’s top 100 brands.

The firm helps people and companies buy, sell, lease and manage commercial real estate of all types. Colliers also entered the investment management segment last year with the acquisition of Harrison Street, and that pillar should drive strong revenue growth in the future.

The company reported solid results in Q1 2019. Revenue came in at $635 million compared to $552 million in the same period in 2018. Adjusted earnings per share increased by 13% to $0.51.

The stock has pulled back from the 2018 high of $108 to $88 per share, giving investors an opportunity to buy on a dip. Over the long haul, Colliers should be a solid performer for your portfolio.

The bottom line

Real estate has a place in every diversified investment portfolio, and these three companies can provide broad exposure to the overall industry.

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The Motley Fool owns shares of Brookfield Asset Management and COLLIERS INTERNATIONAL GROUP INC. Fool contributor Andrew Walker has no position in any stock mentioned. Brookfield Property Partners and Colliers are recommendations of Stock Advisor Canada.

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