Automotive Properties REIT Offers A Well-Covered 6.2% Yield In A Niche Market

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Automotive Properties REIT (TSX:APR.UN:CA) focuses on owning automotive dealership properties across Canada. The REIT obtained its listing in 2015 when Dilawri decided to list the commercial properties. The REIT listed with 26 assets, of which 24 were occupied by the Dilawri Group which still is the REIT’s largest shareholder and the largest tenant (leasing almost 60% of the Gross Lettable Area owned by the REIT) as 36 of the 72 properties owned by the REIT are leased to a Dilawri company. While these ties may sometimes be seen as a negative, it looks like Dilawri has been paying a fair rent and the strong relationship between the REIT and the Dilawri Group may actually be a positive here, as the REIT has a right of first refusal on real estate assets the Dilawri Group would want to divest.

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Long-term lease contracts provide excellent earnings visibility

APR Investor Relations

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