Canadian Real Estate Investment Trusts



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Real Estate Investment Trusts (hereafter referred to as REITs as they are more commonly known) are special exchange listed corporations that have a virtual tax free status.  In exchange for this status, they are to pay 90% of their income in the form of dividends to investors (who in turn most likely pay taxes on the dividends).   In Canada, REITs are a common investment for income investors. REITs are not included in the upcoming tax hike that other income trusts are experiencing.

 

REITS will be keeping their Income Trust special tax status, essentially, unlike the rest of the income trusts.

REITs encompass many different real estate sectors. Below are some of the different REITs available

There are healthcare REITs - which hold healthcare investments and are bigger in the US where they do not as of yet have socialized medicine.

Commerical Office Space REITs - There are several REITs in canada that own buildings in the retail or commercial office space sector. Brookfield properties, for instance, owns multiple high quality office buildings in various world class cities like Toronto, New York and Montreal. Hotel/Motel REITs are another example of commercial REITs.

Residential REITs - in terms of residential REITs these may own apartment complexes REITs, townhouses or individual detached homes. Mostly the rely on leveraging loans to receive rental income to pay off the amortization and earn steady dividend income for investors. Apartment REITs are often seen as a stable source of income.

Retail REITs- own commerical space, operate it and lease it out to businesses in the retail sector. Read more about this sector in Canada with the link.

Industrial REITs own, develop and focus on leasing industrial complexes of massive sizes to clients of various industrial application.

REIT news and updates

Are Canadian REITs overvalued?

Complete list of REITS in Canada on the TSX with Name, Stock Symbol and Province