Investing in REITs (real estate investment trusts) in Canada can be a smart move, especially if you’re looking for a blend of income and growth. One of the biggest benefits of REITs is their ability to generate consistent income through dividends. Canadian REITs, on average, offer dividend yields ranging from 4% to 6%, which is higher than many traditional stocks.
Beyond the steady income, Canadian REITs are diversified across various sectors, from residential to industrial properties. This reduces your risk and gives you a balanced portfolio. With that, here are some to consider this fall.
NorthWest REIT
NorthWest Healthcare Properties REIT (TSX:NWH.UN) stands out as a strong real estate stock for a few key reasons, particularly if you’re looking to build a stable income-focused portfolio. First, NWH.UN offers an impressive forward annual dividend yield of 7.50%, making it a compelling choice for income-seeking investors. This high yield is well above the market average, providing a steady stream of income. That’s especially attractive in a low-interest-rate environment. Despite some short-term challenges, the REIT’s diversified portfolio of healthcare properties, including hospitals and medical offices, ensures consistent rental income, supported by long-term leases and high occupancy rates.
Another reason NWH.UN is worth considering is its current valuation. With a price/book (P/B) ratio of just 0.67, the stock is trading well below the value of its assets. This suggests that it may be undervalued by the market. That news gives investors an opportunity to buy into a solid real estate portfolio at a discount. Additionally, the REIT’s focus on healthcare properties offers a defensive play, as demand for healthcare services tends to be stable regardless of economic conditions. Combine this with the company’s ongoing efforts to strengthen its balance sheet and improve cash flow, and NWH.UN looks like a promising option — especially for those looking to add a reliable, income-generating real estate stock to their portfolio.
Granite REIT
Granite REIT (TSX: GRT.UN) is one of the most appealing REITs, thanks to its solid dividend yield of 4.61%. This provides a reliable income stream for investors. The yield is supported by a healthy payout ratio of 89.68%, indicating that the company is committed to returning value to shareholders. All while maintaining enough resources to fund future growth. Moreover, Granite’s diversified portfolio of high-quality industrial and logistics properties offers a level of stability that’s hard to beat, especially in today’s market.
In addition to the steady income, GRT.UN offers strong financials that make it an attractive investment. With a P/B ratio of just 0.83, the stock is trading below the value of its assets, suggesting it could be undervalued. The REIT’s operating margin of 78.10% and quarterly earnings growth of 21.90% year over year further underscore its operational efficiency and growth potential. Combined with a robust balance sheet, including a reasonable debt-to-equity ratio of 57.74%, Granite REIT is well-positioned to continue delivering solid returns. This makes it a compelling choice for investors looking to add a resilient and income-generating real estate stock to their portfolio.
Primaris
Primaris REIT (TSX: PMZ.UN) presents itself as a compelling choice for those looking to invest in real estate with a solid potential for income and growth. One of the standout features of PMZ.UN is its attractive dividend yield of 6.05%. It provides investors with a steady income stream. This is particularly appealing in today’s market. Finding reliable, high-yield investments can be challenging. The REIT’s payout ratio of 65.57% suggests that the dividend is sustainable. This gives investors confidence that their income is secure while still allowing the company to reinvest in growth opportunities.
What further strengthens PMZ.UN as a solid investment is its financial performance and valuation. The stock is currently trading at a P/B ratio of just 0.62. This indicates it’s priced below the value of its assets — essentially, giving investors a discount on a quality portfolio of properties. Additionally, the REIT has shown impressive quarterly earnings growth of 29.60% year over year and a robust return on equity of 5.76%. With a diversified portfolio and a strong operational track record, Primaris REIT is well-positioned to deliver both income and capital appreciation. Altogether, this makes it a strong contender for any real estate-focused investment portfolio.
