CA - CT REIT: New Distribution Hike Pushes Yield To 6.7% At 74% Payout Ratio

2024-06-07 10:30:00 ET

Summary

• CT REIT maintains a strong relationship with its main tenant, Canadian Tire, providing stability and reducing the risk of store vacancies.
• The REIT's earnings report for the first quarter of 2024 showed a strong increase in net operating income, funds from operations, and adjusted funds from operations.
• Despite potential increases in refinancing rates, CT REIT's conservative distribution payout ratio and increasing earnings make it an attractive investment option.

Introduction

As explained in my recent article on Choice Properties, I like commercial REITs that have a strong relationship with their main tenant. And just like Choice Properties, CT REIT ( CRT.UN:CA ) ( OTC:CTRRF ) maintains an excellent relationship with its main tenant , Canadian Tire ( CDNAF ) ( CDNTF ) ( CTC.A:CA ) ( CTC:CA ). Canadian Tire is the largest shareholder of CT REIT and its largest tenant and those strong ties are a positive element to keep the occupancy ratio high as Canadian Tire won't just vacate stores....

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