3 Office REITs With 10% Yields | The Motley Fool Canada

3 Office REITs With 10% Yields | The Motley Fool Canada: "Slate Office REIT (TSX:SOT.UN) focuses on high-quality, non-trophy office properties in major office markets in Canada. The REIT believes greater value can be found in these non-core assets, which make up two-thirds of the Canadian office inventory. For example, these assets have lower replacement costs and higher cap rates than core office properties.

At the end of November Slate Office just sold $56.2 million industrial and retail properties. Currently, 86% of its NOI comes from office properties.

Since the third quarter of 2014, Slate Office has diversified from 28 properties of 1.8 million square feet to 48 properties of 5.1 million square feet. After acquiring the Fortis portfolio in Atlantic Canada, Slate Office is now diversified geographically across Atlantic Canada (48%), Ontario (30%), and western Canada (22%).

Its top 10 tenants that contribute 45% of portfolio revenue are investment grade. As well, they include quality tenants such as Bell Canada, the federal government, and four provincial governments.

Slate Asset Management L.P. owns about 19% of the REIT, so unitholders can be assured that management’s interests are aligned with unitholder’s interests."



'via Blog this'