7% Yielding Stock You Could Buy Today
SmartCentres Real Estate Investment Trust (TSX: SRU.UN) is one of Canada’s largest fully integrated real estate investment trusts (REITs). With a high-quality, mixed-use portfolio featuring 191 strategically located properties, SmartCentres is well-positioned as a stable, high-yield dividend I’llstock for long-term investors.
This REIT boasts a 7.0% dividend yield, underpinned by strong occupancy rates (98.5%) and a $12 billion asset base. SmartCentres continues to expand into residential and mixed-use developments, enhancing its long-term value proposition.
Company Overview: SmartCentres REIT (TSX: SRU.UN)
SmartCentres focuses on value-oriented retail and mixed-use properties, catering to high-traffic locations across Canada. The company’s key strengths include:
- Large-Scale Real Estate Holdings – Owns 35 million square feet of income-producing retail and office space.
- Prime Locations – Properties situated in high-demand urban and suburban areas with strong consumer traffic.
- Development Pipeline – Actively expanding its footprint with mixed-use projects, including SmartLiving residential communities.
Key Business Segments
- Retail Properties
- Anchored by major retailers like Walmart, making up 25% of rental revenue.
- High occupancy rates ensure stable cash flows.
- Mixed-Use Developments
- Transitioning properties into urban communities with residential, office, and retail spaces.
- “SmartLiving” initiative aims to build 50+ high-rise residential towers over the next decade.
- Industrial & Office Space
- Expanding its logistics and office portfolio to diversify income streams.
Recent News & Developments
SmartCentres REIT has remained active in expanding its portfolio and strengthening its financial position:
📌 $300 Million Bond Issuance – Closed a $300 million Series Y bond offering, reinforcing its liquidity and balance sheet strength. (Source)
📌 New Residential Projects Underway – SmartLiving expansion continues with major residential projects in Vaughan, Toronto, and Montreal. (Source)
📌 Dividend Sustainability – Declared its December 2024 distribution, affirming stable monthly payouts for investors. (Source)
📌 Solid Q3 Performance – Posted consistent rental income growth, reflecting strong tenant demand and high occupancy rates. (Source)
SmartCentres’ focus on mixed-use development and debt refinancing demonstrates its commitment to long-term growth and dividend stability.
Stock Performance Analysis: SmartCentres REIT (TSX: SRU.UN)
SmartCentres stock has been steady in 2024, supported by stable cash flows and rising demand for mixed-use developments.
Why is Stock is Attractive
✔ 7.0% Dividend Yield – Consistent payouts, backed by strong rental income.
✔ 98.5% Occupancy Rate – High tenant retention ensures revenue stability.
✔ Growing Mixed-Use Developments – Expansion into residential real estate supports long-term growth.
✔ Financially Secure – Strong balance sheet with $12 billion in assets.
| Code | Name | GicSector | Beta | 52WeekHigh | 52WeekLow | 50DayMA | 200DayMA | SharesShort | SharesShortPriorMonth | ShortRatio | ShortPercent |
|---|---|---|---|---|---|---|---|---|---|---|---|
| SRU-UN | SmartCentres Real Estate Investment Trust | Real Estate | 1.232 | 27.02 | 20.73 | 24.87 | 24.64 | 3,348,701 | 3,398,353 | 7.56 | 0.0162 |
Peer Comparison: SmartCentres REIT (SRU-UN.TO) vs. Industry Peers
| Code | Name | GIC Sector | Market Cap | Beta | 52-Week High | 52-Week Low | 50-Day MA | 200-Day MA | Shares Short | Short Ratio | Short Percent |
|---|---|---|---|---|---|---|---|---|---|---|---|
| FSV | FirstService Corp | Real Estate | 11.26B | 0.943 | 277.92 | 193.15 | 264.95 | 238.82 | 111,263 | 2.93 | 0.0094 |
| CIGI | Colliers International Group Inc Bats | Real Estate | 10.36B | 1.645 | 218.47 | 137.99 | 202.65 | 185.02 | 278,265 | 3.94 | 0.0413 |
| CHP-UN | Choice Properties Real Estate Investment Trust | Real Estate | 9.34B | 0.661 | 15.27 | 12.20 | 13.42 | 13.73 | 1,462,213 | 3.48 | 0.0081 |
| CAR-UN | Canadian Apartment Properties REIT | Real Estate | 7.08B | 1.235 | 56.58 | 39.23 | 42.70 | 46.61 | 1,637,013 | 3.13 | 0.0082 |
| REI-UN | RioCan Real Estate Investment Trust | Real Estate | 5.47B | 1.315 | 20.54 | 15.79 | 18.49 | 18.36 | 4,337,752 | 6.45 | 0.0092 |
| CSH-UN | Chartwell Retirement Residences | Real Estate | 4.46B | 1.126 | 16.50 | 11.40 | 15.59 | 14.45 | 610,618 | 1.81 | 0.011 |
| GRT-UN | Granite Real Estate Investment Trust | Real Estate | 4.37B | 1.181 | 81.34 | 62.58 | 71.32 | 72.71 | 680,476 | 6.49 | 0.0043 |
| SRU-UN | SmartCentres Real Estate Investment Trust | Real Estate | 4.17B | 1.255 | 27.02 | 20.73 | 24.89 | 24.34 | 3,074,735 | 9.06 | 0.0162 |
| FCR-UN | First Capital Real Estate Investment Trust | Real Estate | 3.49B | 1.28 | 18.91 | 13.95 | 17.17 | 16.66 | 1,451,973 | 4.88 | 0.0043 |
| BEI-UN | Boardwalk Real Estate Investment Trust | Real Estate | 3.45B | 1.76 | 91.03 | 59.53 | 65.03 | 73.82 | 232,104 | 1.36 | 0.0231 |
📌 This table compares SmartCentres REIT ([SRU-UN.TO](http://SRU-UN.TOhttps://wealthawesome.com/stock/sru-un-to/)) with its real estate industry peers, showcasing key financial metrics such as market capitalization, stock performance, short interest, and volatility (beta). Investors can use this data to evaluate how SmartCentres REIT stacks up against competitors in the Canadian REIT sector.
Valuation Metrics: SmartCentres REIT (TSX: SRU.UN)
| Metric | Current | 9/30/2024 | 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 |
|---|---|---|---|---|---|---|
| Market Cap | 4.23B | 4.53B | 3.74B | 3.96B | 4.24B | 3.88B |
| Enterprise Value | 9.22B | 9.58B | 8.75B | 8.92B | 9.24B | 8.84B |
| Trailing P/E | 31.81 | 16.22 | 12.28 | 9.56 | 8.74 | 12.08 |
| Forward P/E | 13.11 | 13.76 | 11.55 | 11.82 | 12.20 | 11.05 |
| PEG Ratio (5yr expected) | — | — | — | — | — | — |
| Price/Sales | 4.71 | 5.26 | 4.45 | 4.74 | 5.11 | 4.72 |
| Price/Book | 0.81 | 0.87 | 0.72 | 0.75 | 0.80 | 0.74 |
| Enterprise Value/Revenue | 10.25 | 11.11 | 10.40 | 10.69 | 11.14 | 10.77 |
| Enterprise Value/EBITDA | 26.46 | 18.55 | 15.87 | 13.10 | 12.07 | 16.01 |
📌 This table outlines SmartCentres REIT’s valuation metrics over time, reflecting trends in market capitalization, price-to-earnings ratios, and enterprise value ratios. Investors can use this data to assess the stock’s valuation in comparison to past performanc. ****
TL;DR Summary: Is SmartCentres’ 7% Yield Safe?
✔ Strong Dividend Coverage – REIT’s cash flow supports stable payouts.
✔ High Occupancy Rate – 98.5% tenant retention minimizes risk.
✔ Mixed-Use Growth – Expansion into residential real estate adds long-term value.
✔ Resilient Financials – Debt refinancing secures liquidity for future investments.
👉 Final Verdict: SmartCentres REIT remains a strong buy for income investors looking for a reliable 7.0% yield.
Final Thoughts
With high occupancy rates, a solid development pipeline, and a stable dividend, SmartCentres remains a top-tier Canadian REIT. Its 7.0% dividend yield is well-supported by rental income, making it a safe and attractive investment for long-term dividend seekers.
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