Written by Amy Legate-Wolfe at The Motley Fool Canada
Real estate investment trusts (REIT) can be some of the best stocks to have in a portfolio for Motley Fool investors. But not all are created equal. We learned during the pandemic that should a shutdown happen, companies can lose that longed for stable revenue.
That’s why with the TSX today trending downwards, we want to find REITs that are value stocks. These are large companies that have stable growth behind them and even more stable growth in the future. So, let’s dive in to three options for Motley Fool investors to consider.
The industrial sector continues to grow by leaps and bounds. REITs that offer space for assembly, storage and more are in high demand with supply chain up and e-commerce booming. And that’s why Dream Industrial REIT (TSX:DIR.UN) remains a strong option.
Dream REIT falls into the territory of value stocks trading at 3.56 times earnings and 0.86 times book value. It offers a potential upside of 36% identified by analyst at writing. Investors can pick up a 4.99% dividend yield and a deal with shares down 20% year to date.
RioCan REIT (TSX:REI.UN) just got off strong earnings, boasting a first-quarter profit of $0.52 per diluted share and $160.1 million profit. The company remained committed to a 97% occupancy rate, up from 95.8% the year before. And yet even with all this, the company remains one of the value stocks on the TSX today
RioCan currently trades at a valuable 11.37 times earnings and 0.90 times book value. Analysts give it a potential upside of 24% as of writing as well. Furthermore, you can pick it up for a dividend yield of 4.67% today. And with shares down 7% year to date, you also get another deal on the TSX today.
Finally, CT REIT (TSX:CRT.UN) is another of the strong value stocks to pick up among REITs. It has stable passive income and managed to grow significantly during the pandemic. Its e-commerce branch boomed, and that’s not going away just because restrictions are easing. In fact, while other companies had to close locations, CT remained strong. With lease agreements that on average last over a decade.
In fact, the company is doing so well it’s not completely in value territory at the moment. It trades at 19.15 times earnings, but at a valuable 2.52 times book value. Shares are just below analyst target prices, with a potential upside of about 10% as of writing. But that may be boosted after the company’s strong earnings recently reported.
Meanwhile, you can pick it up with a dividend yield of 4.85% and shares down 7% from year-to-date highs. In fact, this could be one of the value stocks that sees you through stable growth, while other stocks remain volatile on the TSX today.
Not all REITs are alike, but these three offer strong growth and stable payouts now and in the future. Each is in a solid industry with long-term contracts that will see years of growth in the future. Plus, you get a sweet dividend while you wait. So, latch onto these value stocks if they fall into your investing strategy.
The post 3 Valuable REIT Stocks Analysts Recommend on the TSX Today appeared first on The Motley Fool Canada.
Before you consider Ct Real Estate Investment Trust, we think you’ll want to hear this.
Our nearly S&P/TSX market doubling* Stock Advisor Canada team just released their top 10 starter stocks for 2022 that we believe could supercharge any portfolio.
Want to see if Ct Real Estate Investment Trust made our list? Get started with Stock Advisor Canada today to receive all 10 of our starter stocks, a fully stocked treasure trove of industry reports, two brand-new stock recommendations every month, and much more.
See the 10 Stocks * Returns as of 4/14/22
Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends DREAM INDUSTRIAL REIT.