A real estate investment trust (REIT) is a company that owns and operates income-producing real estate. These have proven to be a great source of income for Canadians in recent years. Today, I want to focus on two REITs that look very undervalued as September winds to a close.
Artis REIT (TSX:AX.UN) is a Winnipeg-based REIT that invests in industrial and office properties in Canada and the United States. Its shares have dropped 23% in 2022 as of close on September 29. That has pushed the REIT into negative territory in the year-over-year period.
In Q2 2022, Artis achieved NAV per unit of $19.37 over $17.37 in the previous year. Meanwhile, funds from operations (FFO) per unit rose to $0.38 over $0.34 in the second quarter of fiscal 2021. Shares of this REIT possess a very favourable price-to-earnings ratio of 3.7. It offers a monthly distribution of $0.05 per share, representing a tasty 6.4% yield.
Allied Properties REIT (TSX:AP.UN) is a Toronto-based REIT that owned, managed, and developed urban workspace and network-dense data centres. This REIT has plunged 39% so far in 2022. Its shares have dropped 32% compared to the same period in 2021.
This REIT possesses a very favourable P/E ratio of 6.3 at the time of this writing. Better yet, it offers a quarterly dividend of $0.146 per share. That represents another tasty yield of 6.4%. Both undervalued REITs can be relied upon for stalwart income going forward.
