C
hoice Properties REIT confirmed a September dividend of $0.064 per unit, a move that helped lift its shares 6 % over the last month. The payout comes as the Nasdaq and S&P 500 hit new highs, buoyed by expectations around the Federal Reserve’s upcoming rate decision. A steady dividend offers investors a sense of income security, likely reinforcing confidence in the REIT and supporting the broader market rally.

    Over the past five years the REIT delivered a 59.43 % total shareholder return. In the past year its performance lagged the Canadian market’s 20.4 % gain but still outpaced the Canadian Retail REIT sector, which fell 0.4 %. This mixed picture shows resilience amid challenges, especially as the company posted recent net losses. Despite these losses, the dividend pledge may serve as an anchor for investor sentiment.

    Current trading price sits just below analysts’ target of CA$15.97 (CA$15.30 today), hinting at modest upside if sentiment stays positive or macro conditions improve. Valuation models suggest the stock could be undervalued.

    The accompanying analysis is purely informational, based on historical data and analyst forecasts. It is not investment advice, does not consider individual circumstances, and Simply Wall St holds no position in the securities discussed.