Monday’s TSX breakouts: This REIT features a 8.8% yield, over 30% potential return

Today, 16 stocks are on the positive breakouts list, while the list of stocks with negative breakouts is at 53, down from last week's peak of 68 stocks. Despite the fact that the S&P/TSX composite index declined another 52 points on Friday, the list of negative breakouts did not grow, a potential positive sign that perhaps a bottom is soon to be reached for the S&P/TSX composite index.

Surfacing on today's positive breakouts list is American Hotel Income Properties REIT LP (HOT.UN-T). AHIP invests in hotel properties in the United States and currently has a portfolio of 79 properties, totalling 6,891 guestrooms, in 27 U.S. states. This is an investment that offers investors the combination of an attractive yield plus growth.

According to Bloomberg, there are five analysts whom cover this security, each of whom have "buy" recommendations. Price target are as follows: $12, two analysts at $12.50, $12.75, and $13.25. The average one-year price target is $12.60, implying a potential price return of 23 per cent, and if you include the yield, the potential total return is over 30 per cent.

The consensus funds from operations estimate is 96 cents per unit (U.S.) in 2015, rising 18 per cent to $1.13 per unit in 2016. The consensus adjusted FFO per unit is 81 cents in 2015 and 95 cents in 2016.

On Friday, the unit price increased 1 per cent to $10.26 on strong volume with nearly 300,000 units trading after AHIP reported third-quarter results. Revenue increased 58 per cent year-over-year to $40.3 million (U.S.), above the consensus estimate of $37 million. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased 68 per cent year-over-year to $12.8 million, above the consensus estimate of $9.8 million. EBITDA margins expanded 31.7 per cent from 29.9 per cent last year. Funds from operations (FFO) increased 65 per cent year-over-year to $8.9 million as a result of higher net operating income. FFO per unit was 27 cents. Average revenue per available room increased 4.8 per cent to $64.24 from $61.31 last year with average daily rates increasing 13.3 per cent to $81.63 from $72.04 last year. The debt-to-gross book value was at a reasonable level, 50.1 per cent, within its target range of 50 per cent to 55 per cent.

AHIP pays unitholders a monthly distribution of 7.5 cents (Canadian) per unit, or 90 cents per year, equating to an annualized yield of 8.8 per cent. The rising U.S. dollar is a positive for the distributions, which are paid in Canadian dollars.

Year-to-date, the unit price of American Hotel Income Properties is up just 2 per cent, but outperforming the S&P/TSX composite index. There is technical support at $10, where its 50-day moving average lies, and upside resistance at $10.50, near its 200-day moving average.

As always, I strongly encourage readers to consult a financial adviser, and to do their own proper due diligence before taking any investment action.

Below is a list of stocks in the S&P/TSX composite index and the S&P/TSX Small Cap index that are technically breaking out, reaching new 55-day highs or lows.