FCRGF - Do You Buy SmartCentres REIT And Its 5.6%-Yielding Dividend?
Investment Thesis
SmartCentres REIT (CWYUF) (TSX:SRU.UN) is a developer and operator of grocery anchored and retail-focused properties. The company has a strong focus in urban markets in Canada. The REIT has also consistently maintained its occupancy ratio above 98% in the past few years. In addition, SmartCentres should be able to benefit from urban intensification in the next decade as nearly half of its properties have the potential for intensification. The company’s dividend is attractive with a 5.6%-yield. However, its average rent growth rate has stagnated in the past year. We think it