Real Estate Investment Trusts, or REITs, are known to deliver reliable monthly Canadian investment cash distributions, some tax deferral, preservation of capital, and growth in cash distributions and capital over time that helps avoid the volatility of the stock market.
Successful REITs (that is, trusts help their investors become successful) typically own and manage a variety of properties in various locations across Canada. This diversification allows the portfolio to thrive even when some property markets may present challenging conditions. Another competency that every REIT should display is management ability, not only to forecast and take advantage of market conditions, but also to add value to the properties that make up the portfolio, to attract and retain tenants year after year, and also achieve premium rents.
Some REIT managers focus on specific niches, such as the apartment market. Apartments are often considered to be a “basic need” and are therefore somewhat sheltered from the performance of the economy. Although apartments and other REIT investments are said to offer slow growth, it is also steady growth that lasts over time – investors don’t need to worry about scrambling to find the next opportunity month after month.
As a bonus, REIT unit holders often enjoy distributions that are considered to be very tax-efficient when compared to traditional investment vehicles. Because of capital depreciation, taxes on distributions can usually be deferred for income tax purposes.
Investing in a REIT allows investors to diversify, and also saves time. REITs also offer an experienced management team, allow investors to leverage economies of scale provided by a diversified portfolio of properties. As well, these investments are liquid – disbursements are made monthly, and this cash can be pocketed by the investor or invested back into the REIT.
Canadian REITs can offer real estate investment Canada participant’s flexible investment options that can help enhance investment stability, cash flow, and profitability.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
