Excessive Dividend 50: Agency Capital Property Belief

Revealed on November sixth, 2025 by Felix Martinez

Excessive-yield shares pay out dividends which might be considerably larger than the market common. For instance, the S&P 500’s present yield is simply ~1.2%.

Excessive-yield shares will be significantly useful in supplementing earnings after retirement. A $120,000 funding in shares with a median dividend yield of 5% creates a median of $500 a month in dividends.

Agency Capital Property Belief (FRMUF) is a part of our ‘Excessive Dividend 50’ collection, which covers the 50 highest-yielding shares within the Certain Evaluation Analysis Database.

We’ve got created a spreadsheet of shares (and carefully associated REITs, MLPs, and so on.) with dividend yields of 5% or extra.

You possibly can obtain your free full record of all securities with 5%+ yields (together with vital monetary metrics resembling dividend yield and payout ratio) by clicking on the hyperlink under:

 

Subsequent on our record of high-dividend shares to evaluate is Agency Capital Property Belief (FRMUF).

Enterprise Overview

Agency Capital Property Belief is a Canadian REIT that owns and co-owns a diversified portfolio of income-generating actual property, together with industrial properties, multi-residential and manufactured residence communities (MHCs), and grocery-anchored and service-oriented retail.

The Belief emphasizes disciplined investing and capital preservation, typically partnering with institutional-grade operators by means of joint ventures to boost returns and handle threat. Its properties are situated in necessity-driven markets throughout Ontario, Quebec, Alberta, and the Maritimes, making certain secure demand and occupancy.

The Belief’s portfolio contains roughly 2.4 million sq. toes of business area, 599 residence items, and 537 MHC websites, with a large geographic and tenant diversification.

By specializing in essential-use property and sustaining excessive occupancy throughout its holdings, Agency Capital Property Belief offers buyers with constant earnings by means of month-to-month dividends.

Supply: Investor Relations

The corporate reported Q2 and YTD 2025 outcomes, highlighting a diversified portfolio of 62 industrial properties (2.43M sq. ft.), 599 multi-residential items, and 537 manufactured residence communities (MHC) items.

Grocery-anchored retail and industrial property account for almost all of NOI, with properties concentrated in Ontario and Quebec and focusing on necessity-driven markets.

Q2 AFFO was $4.5 million ($0.123/unit), largely consistent with final 12 months, with an improved AFFO payout ratio of 106%. Similar-property NOI grew 1.3%, and occupancy remained excessive: 93.8% industrial, 94.4% multi-residential, and 100% MHC. Rents confirmed development, with industrial up 9% and multi-residential up 12% 12 months over 12 months.

The Belief accomplished property gross sales, producing $15 million in proceeds and a $1.8 million achieve. Debt is conservative at 49.9% of gross e-book worth, with a median rate of interest of 4.2%.

Month-to-month distributions of $0.04333 per unit had been declared, reflecting disciplined administration, robust tenant diversification, and a give attention to secure earnings and NAV development.

Supply: Investor Relations

Progress Prospects

Agency Capital Property Belief has proven resilience in its portfolio development, specializing in important and necessity-based property resembling grocery-anchored retail, industrial, and multi-residential properties.

Whereas the Belief has expanded by means of joint ventures and diversified its holdings throughout Canada, historic FFO per unit has usually trended downward in USD phrases, influenced by overseas change actions, larger rates of interest, and the dilution impact of partial possession in new properties.

The portfolio’s defensive nature, excessive occupancy charges, and conservative leverage have helped preserve secure money circulation regardless of these headwinds.

Trying forward, development in FFO per unit and dividends per unit (DPU) is predicted to stay restricted, as rate of interest pressures and FX fluctuations may proceed to weigh on profitability.

Previous traits present restoration following market disruptions—resembling a modest rebound in the course of the COVID-19 pandemic—however total, the Belief seems higher positioned for regular, defensive earnings than for aggressive FFO development.

Dividends, which grew yearly from 2015 to 2022, have remained secure in CAD phrases, reflecting a give attention to constant payouts over speedy growth.

 

Supply: Investor Relations

Aggressive Benefits & Recession Efficiency

Agency Capital Property Belief advantages from a extremely diversified portfolio throughout industrial, multi-residential, and grocery-anchored retail properties, concentrated in necessity-driven markets throughout Canada.

Its give attention to essential-use property offers secure money circulation and excessive occupancy charges, whereas partnerships with institutional-grade operators by means of joint ventures improve operational effectivity and threat administration.

Tenant diversification can be a key power, with no single tenant accounting for greater than 13% of internet hire and the highest 10 tenants comprising giant nationwide firms, thereby decreasing publicity to particular person tenant defaults.

The Belief has demonstrated resilience throughout financial downturns, together with the COVID-19 pandemic, as a consequence of its emphasis on important and defensive asset courses.

Whereas FFO per unit has skilled fluctuations, the portfolio’s composition—significantly grocery-anchored retail, industrial, and multi-residential holdings—has helped preserve occupancy and earnings stability even in difficult market circumstances.

Conservative leverage and disciplined funding methods additional help the Belief’s potential to navigate recessions whereas preserving capital and offering constant month-to-month distributions to unitholders.

Dividend Evaluation

The corporate’s annual dividend is $0.38 per share. At its latest share worth, the inventory has a excessive yield of 8.8%.

Given the corporate’s 2025 earnings outlook, EPS is predicted to be $0.28 per share. In consequence, the corporate is predicted to pay out roughly 100% of its EPS to shareholders in dividends.

Remaining Ideas

Agency Capital delivers enticing distributions supported by essential-use property and powerful occupancy ranges. Nevertheless, constrained development, elevated curiosity bills, and a comparatively excessive AFFO payout ratio elevate issues in regards to the long-term sustainability of its present yield.

Regardless of projecting mid-single-digit annual complete returns—pushed primarily by the beginning yield however partially offset by valuation headwinds—we preserve a promote score, given the absence of dividend development lately.

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