Canadian REITs

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Image result for canadian reitCanadian REITs are expected to see “high single digits and low double digit” returns in 2017. According to a report put of by Timbercreek Asset Management these REITs will realize a gain of between 8.5 and 10.5 per cent. They have dispelled concerns regarding vulnerability of REITs as interest rates begin to increase, citing that they historically perform well during a rising rate environment accompanied by economic growth. Therefore, investing in portfolios highly invested in major cities are a safe bet this year as they benefit from inelastic demand.

Yet, it seems as though better real estate investments lie just south of the boarder. Corrado Russo, senior director of a Toronto-based investment firm feels bullish on the U.S real estate industry as the president-elect’s pro growth policies are assumed to encourage an economic bump. Consequently, Canadian REITs based on foreign assets may be the way to go during the next few years.

Currently Canadian REITs benefit from high dividend yield and low volatility in the sector, suggesting that such investments are less risky. Although rates in the U.S. maybe go up by 25, 50 or even 100 basis points, Canadian REITs are able offer a more competitive overall cash flow.  

Article taken from the Financial Post, written by Armina Ligya
http://business.financialpost.com/investing/canadian-reits-to-see-low-double-digit-growth-in-the-next-year-timbercreek-asset-management


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