In the real estate sector, finding companies with above average yields is not necessarily a difficult task. Many real estate investment trusts (REITs) carry yields which are higher than 5%, with payout ratios designed to remain at, or close to, earnings.
Many REITs, such as WPT Industrial Real Estate Investment Trust (TSX:WIR.UN) also make distributions on a monthly basis, increasing the attractiveness of these investments for those looking for regular monthly income.
Canadian investors will be able to find shares of WPT traded on the TSX, though the company’s core asset base is U.S.-focused.
The trust’s current yield will give investors a 5.5% return on their money, paid monthly, as distributions from the cash flows the trust receives from its impressive real estate portfolio.
WPT’s asset base is extremely defensive, with the majority of the firm’s assets focused on industrial real estate in excellent locations.
A very successful strategy has been to pick REITs with exposure to high quality industrial assets which are becoming more scarce and in higher demand due to macro shifts in the way consumers buy goods, making WPT one of my top picks in the real estate/REIT space.
As a long-term play, WPT offers a very decent amount of upside in addition to a steady stream of income with tenants unlikely to move in the near term, creating a unique mix of relative safety and growth which is hard to come by in the REIT space.
Invest wisely, my friends.
