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REITs Surge Near Five-Year High: Corporate Canada

Canadian real estate investment trusts have rallied to the highest levels in five years as rising occupancy and investor demand for yield outweigh concern the Bank of Canada will raise interest rates to cool the market.

The S&P/TSX Capped REIT Index has climbed to within 0.2 percentage point of a March 13 peak of 162.75, the highest level since July 2007, fueled by dividend yields almost twice the average for the Standard & Poor’s/TSX Composite Index. The gauge has gained 6.3 percent this year, beating the 0.3 percent increase in the broader index.