Canadian REIT Valuations - January 2025 Update

5-Year Performance Insights Into REIT Quality

The REIT Red Room requires fear to enter

Canadian REITs have delivered a -1.8% ytd total return (XRE to 1/21/25) and offer reasons for optimism:

• The yield premium of cap rates over 10-year bond yields is near the middle of its historical range. Cap rates are less volatile than bonds - the spread tightens when bond yields rise and expands when bond yields …