PPRQF - Choice Properties: Grocery REIT Offers A 5.9% Yield

2024-06-01 11:40:00 ET

Summary

• Choice Properties REIT has a strong relationship with Loblaws, its main tenant, which reduces leasing risk.
• The REIT's AFFO and FFO have increased, indicating positive financial performance.
• The impact of increasing interest rates on the REIT's balance sheet is expected to be relatively moderate.

Introduction

I like commercial REITs that have a very strong relationship with their tenants . Choice Properties ( CHP.UN:CA ) ( OTC:PPRQF ) has Loblaws as its main tenant and has a historic relationship with the superstore chain. Choice Properties was spun out of Loblaws and still has the same majority shareholder. I doubt Loblaws will stop leasing assets from a related party and I consider the strong ties to be a clear positive for Choice Properties. This article is meant as an update to previous articles. You can read the older articles on Choice Properties here ....

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