Real estate investment trusts (REITs) have been a dependable source of income for Canadian investors over the past decade. These investment vehicles have experienced success along with the broader real estate market. Rising interest rates have created new challenges for Canadian real estate in 2022 and 2023. However, REITs are not expected to feel the ill-effects of this until the midway point this decade. That means you can still safely target top REITs for their attractive income.
Boardwalk REIT (TSX:BEI.UN) is a Calgary-based REIT that owns and operates more than 200 communities with over 33,000 residential units that total over 28,000 million net rentable square feet. Shares of this REIT have moved up marginally in the year-over-year period as of late morning trading on January 31. The stock has jumped 12% so far in 2023.
This REIT unveiled its third quarter fiscal 2022 results on November 8. Boardwalk REIT delivered sequential revenue growth of 2.3% compared to the previous quarter. Meanwhile, it posted rental revenue growth of 4.9%. Moreover, it reported occupancy of 97% which is up 115 basis points compared to the third quarter of fiscal 2021.
Shares of this REIT currently possess a very favourable price-to-earnings ratio of 6.6. Meanwhile, the REIT offers a monthly dividend of $0.09 per share. That represents a modest 1.9% yield. I’m looking to snatch up this undervalued REIT before we move into February.