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Canadian Apartment Properties Real Estate Investment Trust (CAR.UN)
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Exchange Income Corporation (EIF)
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Cargojet Inc. Common and Variable Voting Shares (CJT)
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Killam Apartment Real Estate Investment Trust (KMP.UN)
We generally like EIF as an income stock which has had decent growth as well over the last year. It can be economically sensitive, but the outlook is positive over the next few years.
CJT is becoming interesting and has seen a nice rebound since late 2023. Analyst estimates have been trending up since earlier this year, but it is not cheap at 25.9X forward earnings, and growth has been slow. It has high debt levels at a net debt/EBITDA of 3.4X, and overall, we would be more cautious on this name.
KMP.UN has seen nice momentum recently amid the rate cuts from the Bank of Canada, and it trades at a decent valuation of 11.2X forward earnings. Its balance sheet is decent, and we could see its fundamentals improve as rates continue to decline. For a larger residential REIT, we might prefer CAR.UN, but KMP.UN has demonstrated similar returns over the years.