With the Federal Reserve holding back on further rate hikes, the low interest rate environment continues. In fact, outside the U.S. in several other developed markets, yields are now in negative territory. Even in Canada, the Bank of Canada has held interest rates at extremely low levels. The current environment makes real estate investment trusts or REITs even more attractive, given the attractive yields they offer.
Yields on REITs offer significant spread even in normal times. In the present environment, the spreads are even higher. Income investors can consider WPT Industrial Real Estate Investment (TSX: WIR.U) for high yields.
WIR is an open-ended real estate investment trust. The REIT is engaged in the business of acquiring and owning industrial investment properties in the U.S. Its objective is to provide Unitholders with an opportunity to invest in a portfolio of institutional-quality industrial properties in the United States markets, with a particular focus on distribution industrial real estate.
WIR currently offers a yield of 6.67%. Earlier today, WIR announced that its Board of Trustees declared a cash distribution of US$0.0633 per unit for the month of June. The distribution will be payable on July 15, 2016 to unitholders of record as of close of business on June 30, 2016.
