News

Stay up to date with the latest ReDev Properties news

Blog Article
March 02, 2020 - Blog Article
Top 4 REITs in Canada with the Highest Three-Year Revenue Growth

Investing in a real estate investment trust (REIT) is a very good choice these days, especially in Canada. More and more investors keep flocking to Canada due to its excellent retail commercial real estate opportunities. However, growing rental revenues as a REIT can be challenging, even in high-potential markets. Nevertheless, some companies manage to stand out and continually generate high revenues.

Here are the top four Canadian REITs with the highest three-year revenue growth, according to the data from the third quarter of the 2019 fiscal year.

Summit Industrial Income REIT

Summit Industrial Income REIT operates 108 light industrial properties in Canada, which have a 99.4% occupancy rate.

By the end of the third quarter of 2019, the company has generated a revenue of $133.2 million. This is a huge improvement from its 2016 revenue of $45 million. Thanks to its three-year revenue CAGR of 43.6%, the company generated a three-year return of 116.7%.

Choice Properties REIT

Choice Properties REIT is the owner, manager, and developer of 756 commercial real estate properties, primarily in the retail sector. It owns and operates 602 retail, 115 industrial, 15 office, and 4 residential properties. It also operates 20 development properties.

In 2016, the company had revenue of $784.4 million. With a three-year revenue CAGR of 19.8%, it reached $1,348.2 million in revenue in 2019, which resulted in a three-year return of 4.5%.

True North Commercial REIT

True North Commercial REIT is the owner and asset manager of 46 commercial real estate properties with a 97% occupancy rate.

From 2016 onwards, the REIT’s revenue grew at a CAGR of 35.1%, going from $41.4 million to $101.9 million in 2019, resulting in a three-year return of 28%.

True North gets 38% of its revenue from government tenants, while its credit tenants provide it with 41% of its entire rental revenue.

American Hotel Income Properties REIT

American Hotel Income Properties REIT is based in Vancouver, Canada, but owns and manages most of its real estate assets in secondary U.S. markets. Its portfolio currently counts 79 select-service hotels, both premium-branded and economy-lodging.

Although it has a negative three-year return of 39.4%, the company generated a high revenue of $338.8 million in 2019. Thanks to its three-year revenue CAGR of 25%, it nearly doubled its 2016 revenue of $173.5 million.

Summary

These Canadian REITs with strong revenue growth prove that retail CRE, can be a great alternative to directly owning real estate. You can gain excellent exposure to real estate and take a step towards financial stability. Contact ReDev to learn about our investment opportunities.