5 of the Best Canadian REITs to Buy Today!

If you’re looking to add exposure to real estate in your portfolio, these are five of the very best Canadian REITs that you can buy today.

edit Real Estate Investment Trust REIT on double exsposure business background.

Image source: Getty Images

Real estate is one of the best industries to invest in for the long haul, so it makes sense that investors want exposure to real estate in their portfolios. And luckily for investors, there are plenty of high-quality Canadian REITs to buy today.

There are REITs of all sizes, serving different geographic areas and even different subsectors of the real estate industry. If you’re looking to buy some of the best Canadian REITs, here are five of the top picks to consider today.

One of the best Canadian REITs to buy for growth

You can find high-growth REITs in any subsector of real estate, but there’s no question that one of the best is residential. And considering InterRent REIT’s (TSX:IIP.UN) long track record of execution, plus how cheap it’s gotten lately, it’s unquestionably one of the best Canadian REITs to buy now.

The fund owns properties in Ontario, Quebec, and B.C. and is focused on constantly expanding its portfolio and investing in adding value for unitholders.

So, although residential real estate has been strong in Canada over the last decade, especially in the regions where InterRent operates, it’s still put up such impressive numbers that it’s clear the fund is one of the best Canadian REITs you can buy.

In those 10 years, investors have earned a total return of roughly 400% — almost certainly more than you can make anywhere else investing in residential real estate.

Two more top REITs to buy for growth

In addition to InterRent, another high-quality residential REIT to buy and hold long term is Canadian Apartment Properties REIT (TSX:CAR.UN). CAPREIT doesn’t quite offer as much growth potential as InterRent. However, it will be a more defensive and less-volatile investment.

The REIT is also quite a bit larger and has assets that span all across Canada, giving it more diversification. If you’re looking for high-quality growth from residential real estate but want a safer investment, CAPREIT is one of the best Canadian REITs to buy now.

In addition, industrial REITs offer investors tonnes of growth potential. And while there are several high-quality industrial REITs to consider, one of the best that I’d recommend investors check out has to be Granite REIT.

One of the best Canadian REITs to buy for passive income

If you’re looking to buy Canadian REITs more for the passive income they provide, one of the best to buy now is CT REIT (TSX:CRT.UN).

CT REIT is a Dividend Aristocrat, as it’s one of the safest dividend stocks you can buy in the real estate industry, and it’s constantly increasing its cash flow.

Part of the reason why CT REIT is such a high-quality investment is that Canadian Tire is a major shareholder. In addition, Canadian Tire is also the REIT’s largest tenant accounting for roughly 90% of its revenue.

Therefore, CT REIT has been incredibly robust, including through the pandemic when many other retail REITs struggled. And considering it’s a REIT that will continue to increase the passive income it pays to investors, plus the fact that its distribution offers a yield of more than 4.5%, there’s no question that it’s one of the best Canadian REITs to buy today.

A top real estate stock with recovery potential

Lastly, if you’re looking for a recovery stock trading undervalued, offering an attractive yield as well as capital gains potential, American Hotel Income Properties REIT (TSX:HOT.UN) is one to consider.

The REIT owns several premium-branded hotels across the United States. So, as travel pics back up, both from travellers and from businesses, the stock offers a tonne of potential to recover, which is why it’s one of the best Canadian REITs to buy now.

It’s already seen a significant recovery, especially from the massive impacts the shutdowns caused. However, there is still significant room to improve back to 2019 levels of capacity, thanks to all the pent-up demand from consumers.

While the REIT trades cheap and offers a yield of more than 5.8%, it’s certainly one you’ll want to check out.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Daniel Da Costa owns INTERRENT REAL ESTATE INVESTMENT TRUST. The Motley Fool recommends GRANITE REAL ESTATE INVESTMENT TRUST.

More on Dividend Stocks

Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept
Dividend Stocks

TFSA Magic: Earn Enormous Passive Income That the CRA Can’t Touch

If you're seeking out passive income, with zero taxes involved, then get on board with a TFSA and this portfolio…

Read more »

Man with no money. Businessman holding empty wallet
Dividend Stocks

2 Stocks Under $50 New Investors Can Confidently Buy

There are some great stocks under $50 that every investor needs to know about. Here’s a look at two great…

Read more »

think thought consider
Dividend Stocks

Down 10.88%: Is ATD Stock a Good Buy After Earnings?

Alimentation Couche-Tard (TSX:ATD) stock might not be the easy buy-case it once was. Here’s a look at what happened.

Read more »

money cash dividends
Dividend Stocks

TFSA Dividend Stocks: Earn $1,200/Year Tax-Free

Canadian stocks like Fortis are a must-have in your portfolio to earn tax-free yields for decades.

Read more »

sale discount best price
Dividend Stocks

1 Dividend Stock Down 11 Percent to Buy Right Now

Do you want a great dividend stock down 11% that can provide years of growth potential? Here's one heavily discounted…

Read more »

Growth from coins
Dividend Stocks

1 Grade A Dividend Stock Down 11% to Buy and Hold Forever 

If you're looking for the right dividend stock at the right price, you're going to want to consider this insurance…

Read more »

Target. Stand out from the crowd
Dividend Stocks

2 Dividend Stocks to Double Up on Right Now

Are you looking for dividend stocks to buy right now? Here are two top picks!

Read more »

edit Taxes CRA
Dividend Stocks

Tax Time: How to Keep More of Your Money

Nearly everyone hates paying taxes, although Canadians can lessen the financial pain with the right tax strategies.

Read more »