Warren Buffett remains bemused that, when people discover a hamburger on sale, this makes them happy, but when they see a stock on sale, this makes them upset. Well, right now we have three REITs that are good value stocks as they happen to be on sale.
For example, CAP REIT, CANADIAN APARTMENT PROPERTIES REIT $20.38 (TSX:CAR.UN) is the same quality company it has always been, but this month it’s available 8.52% cheaper than last month. Yields 5.63%.
CANADIAN REIT $41.12 (TSX:REF.UN)
Nothing has changed, fundamentally, with these three REITs. They have the same balance sheets, the same income statements, the same distribution records, as they’ve always had. What has changed is not the fundamentals of these companies, but investors’ emotions towards this sector of the market. That’s the time to pounce for best value stocks. REF.UN is 8.02% cheaper than four weeks ago. Yields 4.03%.
RIOCAN REIT $24.26 (TSX:REI.UN) H&R REIT and RioCan REIT are our two most favorite REITs. But this month H&R is only 1.94% cheaper than it was four weeks ago, while RioCan is down 5.10% in that time. So, advantage RioCan. Yields 5.92%. Remember too that RioCan scored some prized properties from Primaris REIT recently, which will add to funds from operations in the future.