Recent Purchase: Plaza Retail REIT (TSE: PLZ.UN)
Good evening fellow investors and would-be investors,
On Friday I purchased shares in another REIT in my TFSA: Plaza Retail REIT (TSE: PLZ.UN). I bought 260 shares of Plaza Retail REIT at $4.43 each, with the CIBC Investor’s Edge trade fee this purchase comes out to a total investment of $1158.75 – which was all I had in my TFSA at the time.
PLZ.UN pays a 5.64% dividend, which equates to an annual dividend of $0.25 per share. Considering I purchased 260 shares, this means my investment in PLZ.UN will increase my forward twelve month dividend income by $65.00. Considering PLZ.UN is an REIT and pays dividends monthly, I will be receiving $5.42 every month from this company.
PLZ.UN has raised dividends consecutively for 14 years straight. They have a high dividend yield at 5.64%, while their five-year yield average is 4.93%. The dividend payout ratio is 67.9%, which is below my maximum of 80% but still on the higher end. I believe they can continue to raise the dividends without issue for the foreseeable future.
Another thing I really liked about this purchase is that the book value of PLZ.UN is $4.43, so I am paying exactly what the tangible assets are worth – which puts a neat margin of safety over my purchase.
Plaza Retail REIT has a trailing P/E of 14.3, while the 5-year average is 44.2, which means it is currently trading at a 68% discount in relation to this. It’s also trading at a discount when compared to the five-year averages of Price-to-Sales and forward P/E.
It’s been an exhausting week and while I’d love to go into great detail of Plaza Retail REIT; I promise I’ll write a dividend analysis and link back to this purchase post once I get a chance.
Until then, enjoy the rest of your Sunday!