The REIT market in Canada continues to perform well as investors are attracted to the REIT sector by the high yields and discounted valuations. While starting the year weak, the rebound has been quite sharp, partially aided by the volatility in other sectors such as oil and gas that have people looking for more stable yield.  There is continued demand for quality properties in our largest cities, and we are focusing our attention on those larger markets.  Development is also playing a larger part in the future growth of REIT earnings. As this August will see the creation of a new Real Estate GICs sector, more institutions that traditionally did not look at REITs are looking at the sector, bringing fresh eyes and potentially fresh demand to these names.

TOP PICKS:

Core: RioCan REIT (REI_u.TO)     

While 2016 will actually be a slow year for Canada's largest REIT due to the earnings drag of the sale of its US portfolio, we feel that index changes happening over the summer will benefit this REIT, and long term holders will benefit from the developments that will start coming in over the next few years. Yield is 5.2 per cent.

Value:  CAP REIT (CAR_u.TO)  

Canada's largest apartment REIT has an irreplaceable portfolio of urban apartment buildings, and as such is one of the most stable growth opportunities in Canadian real estate. Yield is 4per cent.

Income: Crombie REIT (CRR_u.TO)    

Crombie started as a Sobey's anchored, Eastern Canadian focused REIT, yet has expanded into Western Canada as well. This REIT continues to deliver very strong numbers, yet trades at a discount to its peers that we feel is too wide. The stock also yields 6.3 per cent.

Past Picks: Apr. 22, 2015

Core: SmartREIT (SMU_u.TO)

Value: Canadian REIT (REF_u.TO)

Income: American Hotel Income Properties (HOT_u.TO)      

Total Return Average : +7.75%