3 Income-Producing REITs for Reliable Cash

Three income-producing REITs from different real estate sub-sectors can be your sources of cash.

Image source: Getty Images

Income-producing real estate investment trusts (REITs) are new sources of funds for most investors. You can choose individual REITs from various sub-sectors that can provide you with reliable cash.


Nexus Industrial (TSX:NXR.UN), a $740.75 million growth-oriented landlord, rose to prominence in 2021 due to strong demand for industrial properties amid the e-commerce boom. The current corporate name reflects the REIT’s focus on quality, in-demand industrial properties.

While the portfolio is diversified, 79 of the total 112 properties or 70.5%, are industrial. Also, the industrial portfolio generates stable cash flows and accounts for 85.1% of net operating income (NOI). The weighted average lease term is 6.6 years.

Nexus leverages its strategic relationship with RFA Capital Partners Inc. and its vast network to identify potential acquisitions. The goal is to increase the portfolio’s weighting to in-demand industrial properties.

In the first quarter (Q1) 2023, property revenues and net operating income (NOI) increased 18.2% and 16.8% year over year to $37.47 million and $25.72 million. However, net income fell to $3.71 million from $18 million in Q1 2022.

Since Nexus began trading on the TSX, it hasn’t missed paying monthly dividends. If you invest today, the share price is $8.53 (-9.08% year to date), while the dividend yield is 7.47%.


The office sub-sector is least attractive at the moment due to weak demand. However, Allied Properties (TSX:AP.UN) is palatable to yield-hungry investors. At $22.76 per share (-8.43% year to date), you can partake in the juicy 7.91% dividend. This $2.91 billion REIT is one of Canada’s largest office landlords.

Allied Properties owns and operates workspaces and urban data centres (UDCs). However, it’s on the cusp of selling the network-dense UDC portfolio to supercharge the balance sheet and be a low-capital REIT by reducing dependence on capital markets.

In Q1 2023, rental revenue and operating income rose by an identical 14.5% to $138.5 million and $77.16 million versus Q1 2022. However, the office REIT incurred a net loss of $3 million compared to the $7.73 million net income a year ago.

Its president and chief executive officer (CEO) Michael Emory said the uptick in operating income was to development completions and contributions from acquired properties in 2022. The goal to consolidate and intensify distinctive urban workspace in major Canadian cities remains unchanged.

I don’t think the underperforming REIT is a dividend trap. Its dividend history shows it has paid dividends every month since 2013.


Residential REITs benefit from the ongoing affordability crisis in the housing market, Boardwalk (TSX:BEI.UN) is a top performer with its 22.42% market-beating return thus far in 2023. The $3 billion REIT owns and operates multi-family rental communities.  

Boardwalk’s downside is the higher share price ($60.01) and very modest dividend yield (1.97%). Nonetheless, the REIT outperforms because of strong rental housing fundamentals. In Q1 2023, rental revenue and NOI rose 10.4% and 16.8%, respectively, to $130.5 million and $75.8 million versus Q1 2022.

Notably, profit soared 218.9% year over year to $221.4 million. Management is aware of the impact of high-interest rates and expense inflation on community providers. Still, Boardwalk’s chairman and CEO Sam Kolias remains confident the REIT will deliver strong organic growth in the years ahead.

Monthly income streams

Most Canadian REITs pay monthly dividends, but you must consider the inherent risks in a particular sub-sector before investing.

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 Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends Nexus Industrial REIT. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Growing plant shoots on coins
Dividend Stocks

2 Under-the-Radar Dividend Payers With Solid Growth Prospects in 2024

These under the radar monthly dividend payers could provide good growth prospects in 2024 and beyond.

Read more »

Question marks in a pile
Dividend Stocks

Should You Buy BMO Stock for its 5.2% Dividend Yield?

BMO stock has outpaced the broader markets in the past two decades. But is this blue-chip TSX bank stock a…

Read more »

data analyze research
Dividend Stocks

Better Dividend Stock for Passive Income: NorthWest REIT or Nexus REIT?

These two dividend stocks offer passive income above 8%, but which is the better (and safer) buy on the TSX…

Read more »

A worker drinks out of a mug in an office.
Dividend Stocks

3 Top Canadian Royalty Stocks With Dividend Yields Averaging 5%

Canadian royalty stocks can provide a lucrative income for investors. Here are three great options to consider buying right now.

Read more »

Dividend Stocks

Is Enbridge Stock a Buy Just for the 7.7% Dividend Yield?

Enbridge is moving higher after a prolonged pullback. Has the stock bottomed?

Read more »

Man considering whether to sell or buy
Dividend Stocks

TD Stock: Buy, Sell, or Hold?

TD stock (TSX:TD) plunged as the company looks to have more expenses on the books for the next year. So…

Read more »

Senior Man Sitting On Sofa At Home With Pet Labrador Dog
Dividend Stocks

These 3 Canadian Dividend Stocks Are a Pensioner’s Best Friend

Consider adding these three TSX dividend stocks to your self-directed retirement portfolio if you want to boost your pension with…

Read more »

dividends grow over time
Dividend Stocks

Earn Passive Income With This 7.6%-Yielding Dividend Stock 

A 7.6% dividend yield is generally opportunistic when dividend stocks are down. But what if you could lock in a…

Read more »