Investing in Canadian stocks that offer monthly income can be a savvy strategy for those seeking regular cash flow. Let’s take a closer look at three notable Canadian stocks listed on the TSX: Granite Real Estate Investment Trust (TSX:GRT.UN), Northland Power (TSX:NPI), and Sienna Senior Living (TSX:SIA).
Granite
Granite REIT specializes in industrial and logistics properties across North America and Europe. In its recent earnings report, Granite announced funds from operations (FFO) of $92.7 million, translating to $1.47 per unit for the fourth quarter of 2024. This marks an increase from $81.2 million, or $1.27 per unit, in the same quarter of the previous year. The trust also reported an adjusted funds from operations (AFFO) of $78.8 million ($1.25 per unit), up from $73.2 million ($1.15 per unit) year over year. Notably, Granite achieved a same-property net operating income (NOI) increase of 6.3% on a cash basis. Plus, it has an occupancy rate of 94.9% as of December 31, 2024.
Granite’s robust performance can be attributed to its strategic leasing activities. During the fourth quarter, the trust secured an average rental rate increase of 14% over expiring rents, covering approximately 1,066,000 square feet of new leases and renewals. This leasing momentum underscores the strong demand for industrial spaces in Granite’s portfolio.
Looking ahead, Granite remains committed to growth. The Canadian stock recently signed a 12-year lease agreement with a leading global consumer food product company for a 391,000-square-foot development in Houston, Texas. This project, expected to complete by the fourth quarter of 2026, is anticipated to yield a stabilized development return of approximately 7.5%.
Northland Power
Northland Power is a prominent player in the renewable energy sector, focusing on clean and green power infrastructure. In its fourth quarter of 2024, Northland reported revenue from energy sales totalling $572 million — a slight decrease from $626 million in the same period the previous year. However, on an annual basis, revenue increased to $2,346 million from $2,233 million in 2023. The Canadian stock also saw a significant turnaround in net income, recording $150 million in the fourth quarter compared to a net loss of $268 million in the same quarter of 2023.
Northland’s future outlook appears promising. The Canadian stock is actively advancing several construction projects, including the 2.4-gigawatt Baltic Power, Hai Long, and Oneida developments. These projects are expected to contribute to Northland’s earnings starting in 2025, with full realization anticipated by 2027. Furthermore, Northland maintains a robust balance sheet, boasting available liquidity of $1.1 billion, positioning the Canadian stock well for continued growth in the renewable energy sector.
Sienna
Sienna Senior Living operates as a senior living provider, offering a range of services from independent living to long-term care across Canada. In its fourth quarter of 2024, Sienna reported a net income attributable to shareholders of $38.4 million, reflecting a profit margin of 4.30%. The Canadian stock’s revenue for the quarter stood at $893.16 million, with a quarterly revenue growth of 12.20% year over year.
Sienna continues to expand its footprint through strategic acquisitions. The Canadian stock recently announced the acquisition of two properties in Ontario, totalling $81 million. This expansion aligns with Sienna’s growth strategy to enhance its service offerings and meet the increasing demand for senior living accommodations.
Bottom line
Investing in Canadian stocks like Granite REIT, Northland Power, and Sienna Senior Living can provide investors with reliable monthly income streams. However, it’s essential to conduct thorough due diligence and consider consulting a financial advisor to ensure these investments align with individual financial goals and risk tolerance.
