“Choice Properties REIT is a fairly new stock, as its only been around for two-and-a-half years, but the foundation is solid. You get the safety of a REIT combined with the defensive nature of the grocery store sector,” The Motley Fool Canada reported.
“Supermarkets are an incredibly defensive industry, and if there’s a recession looming around the corner, then you can bet that people will still be heading to their local supermarket to get a week’s supply of groceries,” the analysis added. “People still have to eat, and this will never change, even during the harshest of recessions.”
Aside from the generous 5.35 per cent dividend yield, a major contributor to Choice Properties’ reliability is its primary tenant: Canada’s largest grocery retailer, Loblaw Companies Limited.
“[The] dividend will be safe through thick and thin due to the low vacancy rates that are expected over the next decade thanks to a solid Loblaw, which is the best anchor anyone could ask for.”
Investors looking for a safe and stable Canadian REIT should strongly consider Choice Properties Real Estate Investment Trust (TSX:CHP.UN), which currently owns in excess of 43.3 million square feet of leasable space in supermarket-anchored shopping centres.