Artis Real Estate Investment Trust (TSX.AX.UN) is a diversified REIT that owns commercial properties. Its net operating income (NOI) is diversified across office properties (50.3%), retail properties (25.6%), and industrial properties (24.1%).
At the end of September 30, Artis REIT had 26.2 million square feet of gross leasable area across 255 properties, and it maintained a 95% portfolio occupancy rate. Artis is primarily invested in Canada, but it also has some assets in select markets in the United States.
Why the 18% dip in price?
It has come down close to 18% from its 52-week high to about $13 per unit perhaps because it has 35% of NOI coming from Alberta. However, investors should be aware that 28% of its NOI comes from the United States.
Is its 8.3% yield safe?
Artis REIT’s 2015 adjusted funds from operations (AFFO) per unit is $1.30, and 2016 AFFO per unit is $1.33. That would make its 2015 AFFO payout ratio 83% and its 2016 payout ratio 81%. So, its distribution yield of 8.3% is safe.
Unitholders can opt to reinvest Artis REIT distributions at a 4% discount.
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