Pure Industrial Real Estate Trust (TSX:AAR.UN) is a blue-chip stock that could be a great cornerstone for any portfolio. The company invests in income-producing industrial properties across North America, with the bulk of its locations being in Canada. By investing in industrial properties, you are effectively investing in the success of the economy.
In three years, Pure Industrial has seen revenues of $108 million in 2013 rise to $186 million in the company’s most recent fiscal year, for an increase of 72%.In its most recent quarter, Pure Industrial saw its top line continue to grow by 22%. Not only has the company shown strong sales growth, but its bottom line has been very impressive as well.
Pure Industrial has seen its net income grow in five of the last six years and is well on its way to continuing that trend this year. In just three years the company’s net income has quadrupled from $35 million in 2013 to $148 million this past year.
As if strong sales and profit growth wasn’t enough, the stock currently pays a dividend of 4.8%, which is distributed in monthly installments. What is most surprising about this stock is that it trades at just six times its earnings and only 1.3 times book value. At those multiples this stock is a bargain.
In 2017, the share price has risen 15% but with the growth the stock has shown, it’s possible for this stock to have much more upside than what it currently trades at. This is a great long-term buy that will fit well with any portfolio.
