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Do You Buy WPT Industrial And Its 5.9%-Yielding Dividend?

Published Sun, 09 Dec 2018 10:45:53 -0500 on Seeking Alpha

Investment Thesis
WPT Industrial (OTCQX:WPTIF) (TSX:WIR.U) is a REIT that owns a portfolio of industrial properties in the United States. The REIT is geographically diversified and has a healthy balance sheet. It should continue to benefit from strong demand for industrial properties thanks to the rise of e-commerce. WPT Industrial’s recent internalization of its property management should help it to reduce operating expenses and improve its operating margin. The REIT currently pays an attractive dividend with a dividend yield of 5.9%. We believe it is a fine investment choice especially for investors seeking to have more exposure to industrial properties in the United States.

Source: YCharts
Q3 2018 Highlights
WPT Industrial reported solid Q3 2018 with FFO of US$0.227 per share. This represented a growth rate of 3.2% year over year. Similarly, its AFFO of US$0.198 per share was an increase of 7.6% year over year. As can be seen from the table below, its FFO and AFFO are on a positive growing trend since Q2 2017.

Source: Q3 2018 Financial Report
What we like about WPT Industrial
Geographically diversified
Unlike other Canadian industrial REITs, WPT Industrial focuses exclusively in the U.S. industrial sector. This is advantageous as industrial activities in the U.S. are much stronger than Canada. The REIT’s properties are geographically diversified. As can be seen from the pie chart below, not any state represents more than... Read more