In the world of Real Estate Investment Trusts (REITs), the number of options available to investors is staggering. From different asset classes to geographical dispersion, which REITs to buy in which markets can be a difficult proposition for most.
While many may stick to the largest and most well-diversified REITs out there (a strategy which I believe may involve hidden issues with specific asset classes moving forward), REITs are one sector which I believe can provide the most upside to stock pickers currently.
In particular, REITs holding assets with long-term contracts with growth provisions should be given priority over those with leases set to expire or be renegotiated, making REITs such as Choice Properties REIT (TSX:CHP.UN) a REIT I have been looking at for some time.
This trust’s primary holdings include a portfolio of assets primarily involving Loblaw locations (although the company has engaged in recent acquisitions which should provide diversification), with properties that are tied into long-term contracts. Insiders at George Weston Limited (TSX:WN) and Loblaw Companies Ltd. (TSX:L) have added to or initiated positions, adding to my bullish long-term expectations for this REIT in particular.
As always, a reminder that insider selling is in no way an indication of the direction a stock is expected to move in the near-term, and long-term investors should assess the fundamentals of said company and consult an investment advisor before making any purchases.
Invest wisely, my friends.
