Canadian REITs report varying stability in retail and residential sectors

Canadian real estate investment trusts (REITs) are showing varying performance levels within the residential and retail sectors.

Crombie Real Estate Investment Trust has reported stable rental income in the hundreds of millions of CAD, driven by food-oriented shopping centers and mixed-use properties in Canada. The company maintains long-term leases with high-quality anchor tenants, resulting in moderate low-single-digit percentage growth compared to the previous year. Its adjusted funds from operations (FFO) per unit remains at or slightly above previous year levels.

In the residential sector, Canadian Apartment Properties Real Estate Investment Trust (CAPREIT) has experienced a 24% share price decline over the past year. Despite facing a softer rental environment, higher interest costs, and a slight dip in Canadian same-property occupancy to 97.5%, the REIT continues to generate income from its approximately 45,500 suites across Canada and the Netherlands. CAPREIT currently offers a 4.8% annualized dividend yield with monthly distributions.