Canada’s real estate sector has experienced impressive growth over the past decade. The COVID-19 pandemic has failed to remove its shine. Today, I want to focus on a real estate investment trust (REIT) that is poised to benefit from Canada’s aging population. By 2040, seniors will make up more than 20% of the total population.
Chartwell Retirement (TSX:CSH.UN) is a Mississauga-based REIT that owns and operates a complete range of seniors housing communities. This ranges from independent supportive living through assisted living to long term care. Shares of this REIT have climbed 10% in 2021 as of late afternoon trading on November 17. The stock has dropped 8.2% over the past six months.
The REIT unveiled its third-quarter 2021 results on November 11. Resident revenue dipped 3.7% from the prior year to $8.1 million. This was largely due to disposition of properties and occupancy decline in its existing property portfolio. Meanwhile, net income improved to $0.9 million over a $6.8 million loss in the third quarter of 2020. This was partially offset by the decline in resident revenue.
Investors on the hunt for exposure to real estate and the ongoing demographic transformation should seek out Chartwell today. Its earnings are poised to post strong growth going forward. Chartwell last paid out a monthly dividend of $0.051 per share. That represents a strong 5% yield.
