The REIT sector of the stock market is divided into different sub-sectors depending on the operations of the underlying businesses. These sub-sectors include:
- Healthcare REITs
- Apartment REITs
- Office REITs
- Industrial REITs
Industrials REITs stand out because some of their assets are single-tenant properties. Single-tenant properties pose higher vacancy risk than their multi-tenant counterparts, which can lead to investor pessimism and mispriced assets – buying opportunities for value investors.
Dream Industrial REIT (DREUF)Â is one example of a real estate trust that operates specifically in the industrial sector.
However, this stock is not well-known among the investment community, likely because it operates specifically in Canada and has a poor track record of delivering total returns. Dream Industrial’s stock price has declined by ~20% in total over the past 5 years.
With that said, Dream Industrial REIT may still make an appealing investment for high income investors. There are two reasons for this.
First, Dream Industrial REIT has an exceptionally high dividend yield. The trust’s current dividend yield of 8.0% is more than four times as high as the average dividend yield in the S&P 500.
Dream’s high dividend yield qualifies it to be a member of the short list of stocks with 5%+ dividend yields.
You can see the full list of 416 stocks with 5%+ dividend yields here.
Better yet, Dream Industrial REIT actually delivers its dividends on a monthly basis. For retirees and other investors that rely on dividend payments, monthly dividends are far superior to the traditional quarterly payment schedule. Unfortunately, monthly dividend payments are very rare in today’s market.
You can see the full list of all 29 stocks that pay monthly dividends here.
Dream Industrial REIT’s high dividend yield and monthly dividend payments make it appealing for high income investors. This article will analyze the investment prospects of Dream Industrial REIT in detail.
Business Overview
Dream Industrial REIT is a Canadian-based industrial-focused real estate investment trust with a
The company operates in two broad divisions:
- Multi-Tenant Properties (68% of net operating income)
- Single-Tenant Properties (32% of net operating income)
Dream Industrial’s asset base stands out for being highly diversified, with 1,305 total tenants. Unsurprisingly, the the average square footage per unit in the trust’s single-tenant properties is much higher than in its multi-tenant counterparts (82,000 compared to 8,000).
