The Canadian real estate sector is facing a major challenge as the Bank of Canada (BoC) has moved to aggressively increase interest rates in the face of soaring inflation. Some analysts have suggested that real estate investment trusts (REITs) will not feel the pinch of these hikes in the near term. That means that investors can still feel secure in gobbling up income from some of the top REITs on the TSX. Today, I want to zero-in on a REIT that has sent off a buy signal in late October.
Chartwell Retirement Residences (TSX:CSH.UN) is a Mississauga-based real estate investment trust (REIT) that indirectly owns and operates a complete range of seniors housing communities. Shares of this REIT have plunged 32% in 2022 as of close on October 21. That has made up the bulk of its year-over-year losses. Canada’s aging population should pique your interest in companies that provide housing and long-term care to seniors.
This REIT released its second quarter fiscal 2022 results on August 11. It reported resident revenue of $164 million – up from $154 million in Q2 2021. Meanwhile, same property occupancy remained steady at 76%. Chartwell has passed through a rough patch, but it is still geared up for solid earnings growth going forward.
Shares of this REIT currently possess an RSI of 24. That puts Chartwell in technically oversold territory at the time of this writing. The REIT offers a monthly dividend of $0.051 per share. That represents a monster 7.4% yield.
