U.S. analyst: Canuck REITs kicking U.S. butt Written by Vernon Clement Jones
Here’s yet another reason why Canadian investors may be jollier than their American counterparts: Their real estate investment trusts are kicking U.S. butt, say analysts.
“Canada has also fared well with its REITs,” Sonny Kalsi, a former exec at Morgan Stanley and now partner at GreenOak Real Estate in, ahem, the States. “Canadian REITs have outperformed their U.S. counterparts by almost 13 percent on average since January 2008.”
The number back up the observation as well as the returns, with investors in Canadian REITs enjoying dividends in the five-plus per cent range.
That’s hardly news for American investors, who are increasingly looking north of the border on the hunt for shares in the growing number of Canuck investment trusts.
Investors in traditional bricks-and-mortar real estate are also taking notice, especially as they find their own acquisition plans frustrated by a dearth of multi-family properties across key local markets. That translates into a seller’s market, marked by bidding wars and sales prices that erode cash flow.
REITS are increasingly winning over those investors, although not everyone is convince those investment opportunities better the return of Canadians looking to capitalize on real estate.
“Oh, investors still want to own their investments,” Tahani Aburaneh, author of “Real Estate Riches: A Money-Making Game Plan for the Canadian Investor” told CREW. “If anything, they are growing in number.”