Generating passive income is one of the most appealing aspects of investing. And for Canadians looking to supplement retirement income or simply enjoy a little extra cash each month, real estate investment trusts (REITs) can offer just that. If you had $20,000 to invest today, two names on the TSX worth considering are InterRent REIT (TSX: IIP.UN) and PRO REIT (TSX: PRV.UN).
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InterRent
InterRent REIT specializes in residential properties across Canada. It’s known for focusing on urban markets with strong rental demand, including Ottawa, Toronto, and Montreal. The company has a proven model of acquiring underperforming properties, renovating them to modern standards, and then increasing both occupancy and rental rates. This strategy has consistently supported revenue and net operating income growth over time.
In its most recent earnings for Q1 2025, InterRent reported proportionate revenues of $61.9 million, up 4.7% year over year. It did experience higher utility costs due to a colder winter, which drove up operating expenses, but still managed a 3.1% year-over-year increase in same-property net operating income. Its occupancy rate across the portfolio remains high at 96.7%, and it continues to increase average monthly rents per suite.
A $10,000 investment into InterRent would generate approximately $331.20 in annual passive income. That may not sound like much on its own, but it’s a consistent, tax-advantaged stream of cash backed by a well-managed portfolio of apartments.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | INVESTMENT TOTAL |
|---|---|---|---|---|---|---|
| IIP.UN | $12.07 | 828 | $0.40 | $331.20 | Monthly | $9,993.96 |
PRO REIT
On the other hand, if income is your top priority, PRO REIT is a name to look at. This REIT focuses on industrial, commercial, and retail properties across Canada, with particular strength in the Atlantic provinces and Quebec. What sets PRO REIT apart is its high dividend yield, which currently sits around 8.3%. It pays $0.45 per year.
PRO REIT recently reported strong first-quarter 2025 results, with net income coming in at $15 million, a big swing from a $9 million loss a year earlier. The REIT has continued to grow its footprint while keeping its payout ratio in check. It owns 127 income-producing properties totalling over six million square feet of gross leasable area, with industrial assets making up the largest portion of its portfolio. The trust continues to focus on maintaining stable occupancy and long-term leases, which helps sustain its high yield.
Investing $10,000 in PRO REIT would provide approximately $834 in passive annual income. That’s more than double what you’d receive from InterRent, but it comes with slightly higher risk. PRO REIT has more exposure to economic cycles given its commercial and retail holdings, but its increasing allocation to industrial assets should help mitigate that risk over time.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | INVESTMENT TOTAL |
|---|---|---|---|---|---|---|
| PRV.UN | $5.39 | 1,854 | $0.45 | $834.30 | Monthly | $9,992.06 |
Bottom line
Together, investing $10,000 in each of InterRent and PRO REIT gives you a total of about $1,165.60 in annual income. More importantly, you’d be getting that income monthly, making it ideal for retirees or anyone wanting regular cash flow.
The combination of these two REITs offers a nice balance. InterRent brings growth and residential stability. PRO REIT brings higher yield and diversification into commercial and industrial spaces. Both have strong management teams, consistent cash flow, and focused strategies for weathering market shifts.
Of course, no investment is without risk. Interest rates, tenant turnover, and broader economic conditions all affect REIT performance. But if you’re aiming to generate dependable income while participating in Canada’s property market without directly owning a building, this duo offers a well-rounded solution.
