7 Hot REITs With Yields Over 7%

Exciting REITs such as Slate Retail Real Estate Investment Trust (TSX:SRT.UN) offer huge yields and intriguing opportunities.

Some folks believe that taking on mortgages and managing property is the path to financial freedom. Personally, I would rather take on less risk, put in less effort, and achieve a better return.

It just so happens that real estate investment trusts, or REITs, allow investors to benefit from the lucrative world of property ownership without the headaches of doing it themselves. Also, as we will explore in this article, REIT investors can collect huge monthly income from these high-yielding stocks while still having the opportunity for capital appreciation.

From highest to lowest yield, here are seven hot REITs with yields over 7%.

Invesque (TSX:IVQ.U)

Healthcare real estate promises to be an enormously lucrative investment as the population ages, and Invesque is uniquely positioned to take advantage of this trend. The company currently operates 100 properties with a total value of around US$1.4 billion.

Trading at a discount to book value and offering a yield of nearly 10.5%, Invesque is the highest-yielding stock of the group.

Slate Retail REIT (TSX:SRT.UN)

100% of Slate’s shopping centres are located in the United States and they are all anchored by grocery stores. With 85 properties valued at roughly US$1.3 billion, the company is geographically diversified and has an occupancy rate of about 95%.

Slate has a forward price-to-earnings multiple of around seven and offers a tantalizing yield of almost 9%.

True North Commercial REIT (TSX:TNT.UN)

With an emphasis on government and credit-rated tenants, True North is an office REIT that strives to build a rock-solid tenant base with minimal turnover. The company’s 46 properties boast an impressive 97% occupancy rate and have a combined value of close to $1 billion.

True North trades at just about book value, with a price-to-earnings multiple of approximately eight and a generous yield of around 8.9%.

BTB REIT (TSX:BTB.UN)

Just about evenly diversified across office, retail, and industrial asset types, BTB is a Quebec-weighted REIT with close to 75% of its leasable square footage located in the province. The company has around 75 properties in total with a total asset value of about $800 million.

BTB trades at a slight discount to book value and only six times earnings, all while offering a superb yield of nigh on 8.7%.

Inovalis REIT (TSX:INO.UN)

Investors who wish to diversify away from North American real estate can do so with Inovalis, which is focused on property in Germany and the Greater Paris Region. Externally managed by Inovalis SA, the company benefits from the real estate and financial expertise of a much larger operator with nearly $10 billion in assets under management.

Inovalis yields not far from 8.1% and has attractive valuation metrics, trading at a price-to-earnings multiple of about 11 and a price-to-book ratio of around 0.8.

Morguard REIT (TSX:MRT.UN)

With a $3 billion real estate portfolio of 49 properties, Morguard REIT is largely focused on office properties and regional shopping malls.

The company trades at only half of its book value and a price-to-earnings multiple of about 10. Morguard REIT yields a little more than 7.7%.

Automotive Properties REIT (TSX:APR.UN)

Consolidating auto dealership properties is the mission of APR, which went public in 2015. The company’s 55 properties are diversified across various Canadian provinces and add up to a value of over $750 million.

APR is the lowest-yielding REIT of the group but still delivers an impressive 7.5%, all while trading at an earnings multiple of around nine.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor James Watkins-Strand has no position in any of the stocks mentioned. The Motley Fool owns shares of AUTOMOTIVE PROPERTIES REIT. Automotive Properties is a recommendation of Stock Advisor Canada and Dividend Investor Canada. Inovalis is a recommendation of Dividend Investor Canada.

More on Dividend Stocks

Dividend Stocks

The 2 Best Canadian Blue-Chip Stocks to Buy Now

Blue-chip stocks can be some of the best stocks to have in any portfolio. But when they're trending upwards, investors…

Read more »

Canadian dollars in a magnifying glass
Dividend Stocks

Here Are My Top 3 Dividend Stocks to Buy Now

These top dividends stocks have consistently paid and increased their dividends. Further, this trend will continue.

Read more »

dividends can compound over time
Dividend Stocks

Want a 7% Yield? The 3 TSX Stocks to Buy Today

These TSX stocks are offering high yields of over 7%, making them attractive for investors seeking steady passive income.

Read more »

how to save money
Dividend Stocks

The Smartest Dividend Stocks to Buy With $200 Right Now

These smartest dividend stocks can consistently pay and increase their dividends in the coming years, irrespective of the macro uncertainty.

Read more »

Electricity transmission towers with orange glowing wires against night sky
Dividend Stocks

3 Utility Stocks That Are Smart Buys for Canadians in November

These utility stocks benefit from regulated businesses and generate predictable cash flows that support higher dividend payouts.

Read more »

Start line on the highway
Dividend Stocks

Invest $10,000 in This Dividend Stock for $600 in Passive Income

Do you want to generate passive income? Forget the rental unit! This option will save you the mortgage yet still…

Read more »

Senior uses a laptop computer
Dividend Stocks

1 Reliable Dividend Stock for the Ultimate Retirement Income Stream

TD Bank (TSX:TD) shares are way too cheap with way too swollen a yield for retirees to pass up right…

Read more »

A worker drinks out of a mug in an office.
Dividend Stocks

Is Brookfield Infrastructure Partners a Buy for its 4.75% Yield?

Brookfield Infrastructure Partners (BIP) has a 4.75% dividend yield. Is it worth it?

Read more »