On September 27 Bank of Canada Stephen Poloz gave an update on the bank’s approach to future interest rate hikes. He struck a cautious tone and emphasized there was “no predetermined path” for future rate hikes. This somewhat dovish tone could bode well for a real estate sector in Canada that has been bleeding since the spring.
H&R Real Estate Investment Trust (TSX:HR.UN) stock has climbed 2.1% month-over-month and has declined 3.7% in 2017. The company announced its second quarter results on August 10. Net income increased $49 million compared to the second quarter of 2016. The stock boasts a dividend of $0.12 per share representing a dividend yield of 6.4%.
Shares of RioCan Real Estate Investment Trust (TSX:REI.UN) have declined 10.2% in 2017 and 12% year over year. The company released its second quarter results on August 3. Revenue experienced 3.6% from Q2 2016 to $286 million. Operating income also climbed 8.5% to $185 million from the previous year. RioCan stock offers a dividend of $0.12 per share with a dividend yield of 5.9%.
Cominar REIT (TSX:CUF.UN) stock is down 7.9% in 2017 and 10.8% year over year. In its second quarter results retention rate was up 49.8% and net operating income declined 5.7%. The stock offers a dividend of $0.09 per share representing an attractive dividend yield of 8.4%.
With Canadian economic growth slowing in July the Bank of Canada may hold off a third rate hike in October which could create a great environment for real estate stocks.
