Creating monthly passive income with a $9,000 investment can be a brilliant way to kickstart a consistent revenue stream without constantly monitoring the market or timing trades. Passive income means the possibility of regular cash flow. Even when the market is volatile or when you’re busy with other things. The appeal is the freedom it gives you to plan financially, knowing there’s a monthly deposit into your account. This approach is ideal if you want to supplement income or reinvest your dividends for long-term growth. Today, let’s look at a great way to get started.
PRO REIT
One stock that shines in the monthly passive income space is PRO Real Estate Investment Trust (TSX:PRV.UN). As a real estate investment trust (REIT), it’s designed to generate steady income from its portfolio of real estate assets. This includes industrial properties that are largely immune to short-term market fluctuations. PRV.UN currently offers a solid dividend yield of around 7.95%, making it a high-income option. With your $9,000 investment, you’d start seeing monthly dividends that can provide either extra cash flow or fuel for reinvestment.
The latest earnings report from PRO REIT reveals the company’s resilience. For the third quarter (Q3) of 2024, property revenue was stable at $24 million despite the sale of non-core properties, showcasing the REIT’s adaptability. Net operating income (NOI) grew by 1.5% year over year, reflecting efficient management. Occupancy is strong, too, with 97.2% of gross leasable area occupied, underscoring the trust’s commitment to maintaining a high occupancy rate.
What’s impressive about PRO REIT is its strategic focus. In 2024, the REIT sold non-core office properties, raising $71.2 million, which was redirected to industrial assets. This pivot to industrial real estate, which now accounts for 86% of the portfolio’s GLA, positions the trust well for the future. Industrial properties have stable demand, particularly in high-traffic areas like near Montreal-Trudeau International Airport. Where PRV.UN recently acquired an industrial building leased to a national logistics company.
Safe and stable
With a beta of 1.75, PRO REIT may be a bit more sensitive to market fluctuations. Yet its portfolio adjustments have aimed to minimize this risk. This strategic move towards industrial properties supports a consistent revenue base and potentially shields it from market swings. Its current share price, hovering at $5.69, also offers a chance to buy in at a reasonable valuation relative to book value.
One factor that adds to PRO REIT’s allure is its dividend track record. It has maintained a steady dividend payout with a forward annual dividend of $0.45, aligned with the industry’s stable income distribution practice. And with a payout ratio of 323.28%, this REIT prioritizes delivering returns to its shareholders. For a passive-income investor, knowing that dividends are a priority provides a reassuring layer of predictability. So, how much could that $9,000 investment bring in? Let’s look at it based on today’s dividend.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | INVESTMENT |
| PRV.UN | $5.70 | 1,579 | $0.45 | $710.55 | monthly | $9,000 |
Bottom line
As you can see, investors can bring in an annual income of $710.55 from this dividend stock. That comes down to $59.21 each and every month!
For long-term passive-income seekers, PRO REIT’s future outlook is promising. Its shift toward industrial properties in areas with strong economic fundamentals suggests a forward-thinking approach to portfolio stability. Industrial properties generally offer lower vacancy risks, adding to the reliability of your monthly income stream. This strategic positioning can be advantageous for a REIT in today’s shifting economic landscape.
In summary, with a $9,000 investment, PRO REIT offers a strong mix of income potential, portfolio stability, and management expertise. It’s a solid choice for those looking for dependable monthly income, especially in a diversified and economically durable sector like industrial real estate. With its focus on strategic acquisitions, consistent occupancy rates, and stable dividends, PRV.UN is an attractive option for anyone looking to build a passive-income portfolio.
