In an unpredictable market, it’s easy to get caught up in the drama of surging growth and tech stocks. But when the dust settles, the smartest investors are those sitting on stable dividend income and dependable long-term performers.
If I could pick just one Canadian dividend stock to buy and hold immediately, especially now that it’s down from recent highs, it would be Automotive Properties Real Estate Investment Trust (TSX: APR.UN). This REIT isn’t flashy, but it checks all the boxes for steady income, resilience, and value, and it’s currently trading at a discount.
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The stock
Automotive Properties REIT focuses on a very specific type of real estate: income-producing automotive dealership properties. While that might sound niche, this kind of specialization is actually its superpower. Car dealerships are large, visible, and require a lot of space, often in high-traffic areas. That real estate doesn’t come cheap, and most dealers would rather lease than own. APR.UN swoops in to own the land and buildings, offering long-term leases that generate consistent income. As of writing, the REIT holds 76 income-producing properties across key urban centres in Canada, representing around 3.1 million square feet of gross leasable area.
Now, here’s where it gets interesting for investors. The stock is down about 18% from its 52-week high of $13.33, now trading at $10.93. That drop isn’t because the business is in trouble. It’s more about sentiment in the broader real estate sector, as investors have become cautious with REITs in the face of fluctuating interest rates. But APR.UN’s fundamentals tell a very different story.
Numbers don’t lie
In its most recent earnings report for the first quarter of 2025, Automotive Properties posted rental revenue of $23.9 million. That’s up 2.1% year over year, showing stable growth in a tough environment. Net operating income increased to $20.1 million, and funds from operations, which is the key profitability metric for REITs, grew 4.1% to $12.6 million. These are exactly the kind of results dividend investors want to see: steady gains, no drama, and a business quietly getting stronger every quarter.
On top of that, the REIT reaffirmed its financial position by maintaining a solid occupancy rate of 100%. All of its income-producing properties were fully leased as of Mar. 31, 2025, which is almost unheard of in commercial real estate. The weighted average lease term is over 11 years, and most tenants have built-in rent escalators. That means revenue will keep rising without the need to aggressively expand or chase new deals.
Growth and income
Let’s talk dividends, because this is where APR.UN really shines. The REIT pays a monthly distribution of $0.067 per unit, translating to an annual payout of $0.804. At the current share price, that’s a yield of approximately 7.44%. What’s more, while shares are down from 52-week highs, the stock is actually up 9% after hitting 52-week lows!
And the performance doesn’t stop at the income statement. Over the past year, Automotive Properties REIT has returned 7.3% when you include reinvested distributions. That beats the Canadian specialized REIT industry average and shows that the market is starting to recognize the value here, even if the stock price hasn’t fully recovered yet. With the recent pullback, investors now have the chance to lock in a higher yield and position themselves for capital appreciation over time.
Bottom line
In a market filled with hype and volatility, Automotive Properties REIT stands out for its simplicity and reliability. It owns critical infrastructure that dealerships can’t operate without, it generates consistent rental income, and it rewards investors with a monthly payout that’s hard to beat. With the stock trading well below its recent highs and the fundamentals remaining strong, it’s exactly the kind of dividend stock I’d want to buy and hold forever. For Canadians looking to add income and stability to their portfolio, this REIT offers a rare mix of high yield, resilience, and value.
