Investing in quality dividend stocks with a monthly payout allows you to begin a low-cost passive-income stream. In this article, I have identified one Canadian monthly dividend stock that offers you a stunning yield of 9%.
Valued at a market cap of $300 million, Pro Real Investment Trust (TSX:PRV.UN) is an industrial-focused real estate investment trust. It owns a portfolio of commercial properties located in strong secondary markets, primarily in Eastern and Central Canada. Moreover, it is largely focused on industrial properties, which offer investors exposure to this growing real estate sector.
In 2018, Pro REIT acquired Compass Commercial Realty, its property management arm. Compass delivers commercial property management and real estate services throughout Canada, including property management, sales, leasing, and project management. This integrated structure allows PROREIT to maintain tight operational control while maximizing property occupancy and minimizing costs.
Compass has an impressive track record with commercial property sales exceeding $425 million.
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Is this TSX dividend stock a good buy right now?
Despite a challenging macro environment, Pro REIT delivered stable results in 2024, highlighting the resilience of its industrial-focused portfolio. The REIT made significant progress on its strategic goal of becoming a pure-play light industrial REIT, with industrial assets now accounting for 81% of base rent, up from 73% at the end of 2023. These moves bring the REIT closer to its medium-term target of 90%.
Pro REIT maintained a disciplined capital recycling approach, selling nine non-core properties for $71.2 million in 2024 and acquiring a 134,000-square-foot industrial property near Montreal’s Trudeau International Airport for $32.7 million. Pro REIT continued its divestments in 2025 with additional property sales, using proceeds primarily to reduce debt and fund strategic initiatives.
Despite owning eight fewer properties than at year-end 2023, the REIT maintained stable net operating income for both the fourth quarter and the full year. Same-store property NOI (net operating income) grew an impressive 7.7% for 2024, outpacing the 1.7% growth in 2023. Management anticipates mid- to high single-digit NOI growth in 2025 and 2026, supported by leasing momentum and substantial rental rate increases.
The REIT’s leasing performance remains a key strength, with 90.9% of gross leasable area maturing in 2024 renewed at an overall rental spread of 39.1%, including 50.5% for industrial properties.
What’s next for this Canada-based REIT?
Looking ahead, PROREIT has already secured renewals for 47% of 2025 expirations at a 32% rental spread and 45% of 2026 expirations at a 38% spread, an indicator of strong tenant demand.
Portfolio occupancy remained at 97.8% at year-end, with recent leasing activity addressing most transitional vacancies. The company has secured several industrial leases starting in 2025, including a 128,000-square-foot space with a new international tenant on a 15-year term with rent increases exceeding 30%.
From a financial perspective, Pro REIT reduced its total debt by $16.7 million to $498.6 million, maintaining its debt-to-gross book value ratio at approximately 50%. The REIT also improved its adjusted debt to annualized adjusted earnings before interest, tax, depreciation, and amortization ratio to 9.2 times from 9.6 times a year ago.
Despite a challenging interest rate environment, Pro REIT has effectively managed its exposure, limiting the increase in its weighted average interest rate to just 51 basis points over the past three years.
Management remains focused on sustainable growth and disciplined capital allocation. In 2025, it targets $30-60 million in additional property sales to advance its transition toward a pure-play industrial REIT while maintaining its monthly distribution of $0.0375 per unit.
