Best Stocks to Buy in August: TSX Real Estate Sector
Best Stocks to Buy in August: TSX Real Estate Sector
Falling interest rates in Canada make a compelling bullish case for real estate investments in August 2024. Mortgage rates will decline to make leveraged real estate deals more affordable. Canadian real estate investment trusts (REITs) could do better in a lower interest rate environment, and I'm bullish on two uniquely positioned high-quality TSX REITs to buy this month.
加拿大利率下降爲2024年8月的房地產投資提供了令人信服的看漲理由。抵押貸款利率將下降,使槓桿房地產交易更加實惠。加拿大房地產投資信託基金(REIT)在較低的利率環境中可能會表現更好,我看好本月有兩個定位獨特的高質量多倫多證券交易所房地產投資信託基金。
Why invest in TSX real estate sector stocks in August?
爲什麼要在八月份投資多倫多證券交易所房地產板塊的股票?
Significant rate cuts could be on the horizon, and they may re-ignite investor interest in highly leveraged TSX real estate stocks as borrowing costs decline.
大幅減息可能即將到來,隨着借貸成本的下降,減息可能會重新激發投資者對高槓杆的多倫多證券交易所房地產股票的興趣。
Canada's leading lenders forecast a significant decline in interest rates between the third quarter of 2024 and the fourth quarter of 2025. In an interest rate forecast report compiled by the Colliers International Group in July, major lenders forecast interest rates to decline to ranges by as much as 200 basis points to a range of 3.5% to 2.75% by the fourth quarter of next year.
加拿大主要貸款機構預測,在2024年第三季度至2025年第四季度之間,利率將大幅下降。在高力國際集團7月份編制的利率預測報告中,主要貸款機構預測,到明年第四季度,利率將下降多達200個點子,至3.5%至2.75%之間。
Real estate market activity could increase as interest rates fall significantly over the next 18 months to kick off a strong rebound in beaten-down Canadian REITs.
隨着利率在未來18個月中大幅下降,房地產市場活動可能會增加,這將啓動飽受打擊的加拿大房地產投資信託基金的強勁反彈。
The two best TSX real estate sector stocks to buy now
現在最值得買入的兩隻多倫多證券交易所房地產板塊股票
The best TSX real estate sector stocks for income-oriented investors to buy in August include Minto Apartment Real Estate Investment Trust (TSX:MI.UN) and Choice Properties Real Estate Investment Trust (TSX:CHP.UN). Let's take a closer look.
8月份最適合收益型投資者購買的多倫多證券交易所房地產板塊股票包括明託公寓房地產投資信託基金(多倫多證券交易所股票代碼:MI.UN)和Choice Properties房地產投資信託基金(多倫多證券交易所股票代碼:CHP.UN)。讓我們仔細看看。
Minto Apartment REIT
明託公寓房地產投資信託基金
Minto Apartment REIT recently released an impressive set of financial and operating results for the second quarter. Falling interest rates could propel trust units towards the most recent net asset value per unit of $22.27, nearly 43% higher, over time.
明託公寓房地產投資信託基金最近公佈了第二季度令人印象深刻的財務和經營業績。隨着時間的推移,利率下降可能會推動信託單位達到最新的每單位淨資產價值22.27美元,增長近43%。
The residential REIT owns and operates a portfolio of 6,211 rental apartment suites in Canada. Its portfolio generated a normalized same-property net operating income (NOI) growth of 7.5% year over year during the last quarter, supported by growth in average rental rates on new leases, high and steady occupancy rates, and tight expense management.
住宅房地產投資信託基金在加拿大擁有並經營6,211套出租公寓套房。其投資組合在上個季度實現了正常的同類物業淨營業收入(NOI)同比增長7.5%,這得益於新租賃平均租金的增長、高而穩定的入住率以及嚴格的支出管理。
Most noteworthy, Minto Apartment REIT generated 18.7% more distributable cash flow during the past quarter, and its normalized adjusted funds from operations (AFFO) payout rate improved by 870 basis points to an industry-low 57.2%. The trust's monthly distribution has never been safer, and management has significant room to continue raising distributions.
最值得注意的是,明託公寓房地產投資信託基金在過去一個季度創造了18.7%的可分配現金流,其正常化調整後運營資金(AFFO)支出率提高了870個點子,至行業最低的57.2%。該信託基金的月度分配從未如此安全,管理層還有很大的空間繼續增加分配。
The REIT has raised its monthly distributions by a cumulative 23.2% since its initial public offering (IPO) in July 2018. The current monthly payout yields a respectable 3.2% annually.
自2018年7月首次公開募股(IPO)以來,房地產投資信託基金已將其月度分配額累計提高了23.2%。目前的每月支出每年可觀的3.2%。
Minto Apartment REIT's interest costs declined by 16.5% year over year during the second quarter. The trust is successfully retiring expensive debt, and its debt-to-gross-book value ratio improved by 100 basis points to 41.8% going into the third quarter. Investors may appreciate the REIT's prospects more as interest rates fall to make financing costs even more affordable.
明託公寓房地產投資信託基金的利息成本在第二季度同比下降了16.5%。該信託基金成功償還了昂貴的債務,進入第三季度,其債務與賬面總值的比率提高了100個點子,達到41.8%。隨着利率的下降使融資成本更加實惠,投資者可能會更加欣賞房地產投資信託基金的前景。
Choice Properties REIT
精選地產房地產投資信託基金
Choice Properties REIT is a diversified real estate trust with 702 income-producing properties worth $16.7 billion. Most of its assets are retail properties with Loblaw as an anchor tenant comprising 56% of the REIT's annual income. The relationship enhances cash flow and earnings stability as the trust pivots to industrial and mixed-use industrial developments.
Choice Properties REIT是一家多元化房地產信託基金,擁有702處創收房產,價值167億美元。其大部分資產是零售物業,Loblaw是主要租戶,占房地產投資信託基金年收入的56%。隨着信託基金轉向工業和混合用途工業發展,這種關係增強了現金流和收益穩定性。
The REIT has a robust property development plan that could get cheaper funding in a lower interest rate environment. It plans to develop 17.2 million square feet of new mixed-use and residential space — or 26% more leasable space compared to its current gross leasable area of 65.9 million square feet.
房地產投資信託基金有一項強有力的房地產開發計劃,可以在較低的利率環境中獲得更便宜的融資。它計劃開發1720萬平方英尺的新綜合用途和住宅空間,與目前的6590萬平方英尺的總可租賃面積相比,可租賃空間增加26%。
Portfolio occupancy rates recently improved to 98% from 97.4% a year ago, and the REIT's industrial portfolio was largely responsible for its respectable same-property NOI growth of 4.4% (on a cash basis). Management sees strong embedded income growth from industrial properties where the average market rent of $15.95 per square foot in June was significantly higher than the REIT's in-place rent of $9.32. The trust has room to negotiate for higher rates upon industrial lease expirations.
投資組合入住率最近從去年同期的97.4%提高至98%,房地產投資信託基金的工業投資組合是其4.4%(按現金計算)可觀的同地產NOI增長的主要原因。管理層認爲,工業地產的嵌入式收入將強勁增長,6月份的平均市場租金爲每平方英尺15.95美元,遠高於房地產投資信託基金的實際租金9.32美元。該信託基金在工業租約到期後有談判提高利率的空間。
Meanwhile, the trust pays out a lucrative monthly distribution yielding 5.3% annually. Its AFFO payout rate improved to 77.9% last quarter to give management more room to sustain annual distribution raises. Distribution increases will be much easier if financing costs decline. About 15% of the trust's debt will mature in 2025 and 2026.
同時,該信託基金每月支付利潤豐厚的分配,年收益率爲5.3%。上個季度,其AFFO派息率提高至77.9%,這爲管理層提供了更多的空間來維持年度分配的增長。如果融資成本下降,分配的增加將容易得多。該信託基金約有15%的債務將在2025年和2026年到期。