I do not mind this REIT. It doesn't have the heavy Ontario exposure that a lot of the residential REITs have. Instead, it has more focus on Western Canada.
During the real estate heyday this was often seen as a negative. After all, it was pretty much just a cheat code to buy real estate in Toronto and benefit. However, we're not at the point where this is becoming a massive issue, with GTA properties falling in price.
Strong rental growth, strong cap rates, and a very well covered distribution. At this point in time it only makes up around 40% of its AFFO.
Now, the reason it is this low is because the company was mismanaged prior to the pandemic. It had to cut the distribution back in 2018. It seems like they've got their situation sorted out here and should be able to provide consistent distribution growth moving forward.
Residential REITs are not my cup of tea anymore. However, when I look to Boardwalk and CAP REIT, there is no doubt some attractiveness there.