We previously wrote about a very important pair of REIT metrics, funds from operations (FFO) and adjusted funds from operations (AFFO). REITs report AFFO as a measure of cash available for dividends to unitholders. The definitions of these two measures are: FFO = Net Income + Depreciation + Amortization + Gains/Losses on Property SalesAFFO = FFO – Recurring Capital Expenditures, ... [Read More]
American Tower REIT
Most investors are unaware of the vast real estate holdings that are required for modern telecommunications infrastructure Overview American Tower (AMT) is the biggest American REIT. This infrastructure REIT specializes in the ownership and operation of telecommunications towers and other structures that it rents out to telecom companies and broadcasters. It has worldwide visibility in ... [Read More]
Public Storage REIT
Overview Public Storage (PSA) is one of America’s largest REITs, a far cry from its first self-storage facility built in 1972. Principally, PSA acquires, develops, owns and operates self-storage facilities and is headquartered in Glendale CA. The company owns and operates thousands of facilities throughout the United States and Europe, occupying more than 142M sq. ft. of net rentable real estate. ... [Read More]
Simon Property Group REIT
Overview Simon Property Group (NYSE: SPG) is America’s largest retail REIT and shopping mall operation, it owns, develops and manages premier shopping, entertainment, dining, and mixed-use destinations, specializing in upscale properties of five types: Premium Outlet centers Regional malls The Mills Community/lifestyle centers International properties SPG owns five out of the ... [Read More]
Minto Apartment REIT
Minto Properties, Inc. (MPI), a Greenberg family real estate company with more than 60 years’ experience, is preparing to launch the Minto Apartment REIT with an initial raise of $200M. The REIT is unincorporated and open-ended, registered in Ontario. The REIT plans to concentrate on urban areas in Canada. MPI will retain majority ownership of the REIT and will provide certain ... [Read More]
REITs, Business Cycles and Rising Interest Rates
Interest rate increases do not doom REITs to losses or underperformance, as long as they are gradual and anticipated. Real estate investment trusts (REITs) are thought to be sensitive creatures – they feel the impacts of changes in interest rates and the business cycle in profound ways. This sensitivity stems from the fact that REITs are high-yield instruments, in that most of their total ... [Read More]
CT REIT
Overview CT Real Estate Investment Trust is an unincorporated real estate investment trust with significant holdings in Canadian retail properties. Holdings are located primarily in Ontario, Quebec and Western Canada. CT REIT derives the vast bulk of its revenues from its major lessee and majority unitholder, Canadian Tire Corporation (CTC), the operator of the Canadian Tire retail chain. Most of ... [Read More]
Choice Properties REIT
Overview Choice Properties REIT is a manager, developer, and owner of retail and other commercial Canadian properties, and has started to diversify into mixed-use commercial/residential properties. Most of its revenue stems from tenant leases. Choice is principally owned by Loblaw Companies, the country’s largest grocery retailer, which in turn is controlled by the Weston family. Loblaw-bannered ... [Read More]
SmartCentres REIT
Overview SmartCentres is a large Canadian REIT that specializes in value-oriented retail stores and shopping centers, many anchored by Walmart supercenters. The REIT’s main purpose is to develop, lease, construct, own and manage shopping centers and office buildings. The REIT generally prefers properties that are located next to major highways and contain anchor stores. Portfolio occupancy at the ... [Read More]
RIOCan REIT
Overview RioCan is one of Canada’s largest REITs, with a market cap of $13.9B (all dollars are Canadian). It manages, owns and develops 294 retail and mixed-use properties throughout Canada containing 45.149M square feet of net leasable area. Retail properties include urban retail, new format retail, and grocery- and non-grocery-anchored centers. As of the end of Q3 2017, RioCan had 6,415 ... [Read More]