Get Safe Residential Rent With 5-9% Yields | The Motley Fool Canada

Get Safe Residential Rent With 5-9% Yields | The Motley Fool Canada:Morguard North American Residential REIT (TSX:MRG.UN).

Since its initial public offering in 2012, Morguard North American Residential REIT has doubled its portfolio size to over 13,000 suites across 45 multi-unit residential properties in North America.

Specifically, the REIT has about $2 billion worth of assets. Its portfolio of properties include 31 low-rise and mid-rise apartment communities in the United States and 14 Canadian residential apartment communities in Alberta and Ontario.

Safe distribution

In the third quarter that ended on September 30, the residential REIT’s adjusted funds-from-operations payout ratio was below 68%, reduced from 88% compared with the same period in 2014. Further, the REIT maintained a high occupancy rate of 95.7% (specifically, 99% in Canada and 94% in the United States). So, the REIT’s 5.5% yield remains safe.

Valuation

Morguard North American Residential’s book value is $21.8 per share. At $10.8, the REIT is discounted by 50% from its book value."



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