RBC analyst Pammi Bir outlined their top picks in the REIT sector ahead of earnings reports,
“Our Q2/23E reflect average year-over-year FFOPU [funds from operations per unit] growth of 1%, consistent with Q1/23. However, the average masks wide dispersion, with leadership from industrial (+7% YoY FFOPU), multi-family (+5%), and retail (+3%), well ahead of diversifieds (-4%) and office (-11%). We expect the pace to build through 2023E with sector average FFOPU growth of 2%, down from last year’s 3%, partly from the impact of higher interest rates... "
Mr. Bir has “outperform” ratings on Boardwalk REIT, BSR REIT, CAPREIT, European Residential REIT, Interrent REIT, Killam Apartment REIT, Minto Apartment REIT, Morguard Residential REIT, Chartwell Retirement Residences, Allied Properties REIT, Dream Industrial REIT, Granite REIT, First Capital REIT, RioCan REIT, Smartcentres REIT, and Storagevault Canada Inc.