Let’s list the sources that can give you a monthly paycheck: rent, salary, loan interest, and dividend stocks. Living paycheck to paycheck is not sustainable in the long term. With time, your physical strength reduces, and keeping up with the changing technological trends becomes difficult. Building a passive-income pool at your prime can ease the burden of active income during challenging times. The TSX has incredible dividend stocks to help you build such a pool. Amongst them, this monthly payer is my favourite because it trades at an irresistible price.
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This incredible monthly payer is down 17%
CT REIT’s (TSX: CRT.UN) unit price is trading at $15, a 17% discount on its net asset value (NAV) of $17.52. A real estate investment trust (REIT) is a trust that owns and manages a portfolio of properties and earns income from this portfolio. CT REIT has a portfolio of 375 retail and industrial properties, and its fair market value is equally distributed across every unit to arrive at the NAV.
This value will increase as the REIT has 20 projects in various stages of development, which are expected to be completed by the end of 2026. These projects will add approximately 891,000 square feet to CT REIT’s gross leasable area, of which around 97% is pre-leased.
Then why is the REIT trading at a discount?
The unit price trades on market sentiments around the REIT’s capability to earn rental income and its operational risk. The market has priced in the last three years’ volatile economic environment, with rising interest rates correcting property prices and tariff uncertainty increasing recessionary fears.
There is operational risk from its parent company and primary tenant, Canadian Tire. The retailer has been streamlining its operations and merging a few banners, which increases the risk of relocation.
Why is this monthly payer irresistible?
All these risks discount CT REIT’s unit price. While these risks do exist, the REIT has so far shown resilience. It has maintained a 99.4% occupancy and increased its net operating income (NOI) from properties by 4.6% year over year to $118.7 million in the first quarter of 2025. The quarter included a one-off development fee, and if you exclude that, NOI increased by 3.7%.
The management passed some of the profits to unitholders by increasing the distribution per unit by 2.5%, payable from July 2025.
The REIT distributes the income on a monthly basis and grows this distribution annually in July. Since its IPO in October 2013, it has cumulatively increased its distributions by 45.9%. The 3.3% compounded annual growth rate of distributions makes it an ideal investment for those seeking monthly payouts that grow with inflation.
Who should buy CT REIT?
The REIT can give you monthly payouts. However, it may not be the best option if you want your invested amount to grow, as the unit price is relatively stable.
If any of the below scenarios describe your financial need, CT REIT is a good investment.
If you are a retiree looking to convert your retirement pool into passive income, you could consider investing a significant amount in CT REIT. However, don’t forget to diversify your passive income portfolio across different sectors and asset classes, as CT REIT has its risks.
If you have received an annual bonus or a windfall gain and are unsure where to invest, you can park that money in CT REIT and enjoy assured payouts. Suppose you have a $20,000 balance; you could buy 1,333 units of CT REIT and earn $102.7 per month and $105 per month from July 2025.
Until you use that money or invest it elsewhere, you can enjoy assured distributions.
Investor takeaway
Every stock has a way of giving returns to shareholders. Investors need to align their financial needs with the right stock to build an optimal financial portfolio.
