Investment idea: Northview, Canada's highest yielding residential REIT

Because not everything 'real estate' is focused around Toronto

Hi everybody,

Today I thought I would share a favourite investment idea about a lesser known residential REIT in Canada that does not get much attention. For disclosure sakes, it is currently one of my largest real estate holdings. Northview Residential (TSX: NRR.UN) is a name that is not well known although the players behind it are two of the larger residential investing investors in Canada, being Starlight & Kingsett. It currently offers investors a 7.5% well covered yield which is by far the highest in the residential space which is an attractive consideration for income seekers although there is a much greater alure to NCP then simply the distribution. With a surge in negativity in recent months about declining rent prices and a change in immigration policy, it makes the situation at Northview even more unique as 90% of their exposure is not focused on immigration or student-centric markets in Ontario at all with zero Toronto/GTA exposure where the ‘declining’ rents are taking place. It is important to note this decline particularly revolves around newer condominium builds which were planned and constructed at periods of historically low interest rates rather then legacy apartment rentals. In fact, two of three Northview markets are in Atlantic Canada and Alberta, the two provinces where rent prices are still growing. Their largest market is the Canadian Arctic, where they are essentially the only game in town.