Real estate is one of the world’s most popular investments, but buying and managing a rental property is simply not for everyone. Fortunately, there are real estate investment trusts (REITs) that offer the benefits of owning residential properties without the hassles that come with purchasing a property or managing tenants. With this in mind, let’s take a look at two residential REITs with yields over 4% that you could buy today.
Killam Apartment REIT (TSX:KMP.UN) owns and manages apartment buildings and manufactured home communities (MHCs) across six Canadian provinces. As of March 31, its portfolio consists of 184 apartment properties with a total of 14,444 units and 35 MHCs with a total of 5,165 land-lease sites. It also owns four commercial buildings in Halifax.
Killam pays a monthly distribution of $0.05167 per unit, representing $0.62 per unit annually, giving it a 4.8% yield today. Investors must also note that the company has raised its distribution three times since it began paying one in 2007, and its most recent increase was a 3.3% increase in February that was effective for its March distribution.
Morguard North American Residential REIT
Morguard North American Residential REIT (TSX:MRG.UN) owns and manages apartment properties in Canada and the United States. As of March 31, its portfolio consists of 46 apartment properties, including 15 in Canada and 31 in the United States, that have a total of 13,472 units.
Morguard pays a monthly distribution of $0.05333 per unit, representing $0.64 per unit annually, giving it a yield of about 4.1%. It’s also important to note that the company’s 6.7% distribution increase in November has it positioned for 2017 to mark the second straight year in which it has raised its annual distribution.