Real estate investment trusts or REITs provide exposure to the commercial and residential real estate market. REITs either directly invest in commercial or residential real estate or buy mortgages. Given the boom in the Canadian property market, REITs are certainly worth a look.
REITs are particularly attractive for dividend investors as they provide regular income. Dividend investors currently looking at REITs as an investment option should consider H&R Real Estate Investment Trust (TSX: HR.UN), which not only offers a regular income but also very attractive yield.
H&R Real Estate Investment Trust is a Canada-based open-ended investment trust. The REIT’s objectives are to provide holders of REIT units with stable and growing cash distributions, generated by revenue it derives from investments in income-producing real estate properties, and maximize REIT unit value through the ongoing active management of the REIT’s assets, acquisition of additional properties and the development and construction of projects which are pre-leased to creditworthy tenants. Its portfolio consists of office, industrial and retail properties throughout Canada and the United States.
As of December 31, 2015, H&R REIT had $14 billion in assets. Earlier this week, the REIT announced distributions for the month of April and May. H&R REIT currently offers a yield of 6.32%.
