REIT Top Picks 2013

Canaccord has posted top picks for public REITs in 2013 as well as projected returns for the sector.  They cite strong fundamentals across all major asset classes, exceptionally low interest rates, and free flowing debt and equity capital - the result is predicted to be a total return of 11% in 2013 for stocks they cover. This follows a S&P/TSX Capped REIT Index total return of 17% in 2012.

This chart (click to enlarge), shows returns since December 2008, and compared the Canadian and US REIT indices to the S&P 500 and TSX Composite.  REITs have outperformed the broader indices.


Canaccord top picks for 2013 along with target prices and current yield are:
Amica Mature Lifestyles ($11.25; 4.52% ..others have targets up to $10)
InterRent REIT ($6.50; 2.64% ...already run up to $6)
Killam Properties ($15.25; 4.44 ... more room to run)
Artis REIT ($18.25; 6.7% .. was $17.22 last summer)
H&R REIT ($28.00; 5.71% ..more room to recover from last summer)
Crombie REIT ($17.00, 6.04% ... more room to run since last fall)

On average, you get paid 5.01% to wait.  This compares with a yield of 4.06% for iShares XRE - S&P/TSX Capped REIT Index Fund (3 of Canaccord's top picks are in the index), or 5.36% for ZRE BMO Equal Weight REITs Index ETF.