When markets start to feel shaky, many investors head straight for safety. Some go for gold, others hold cash, but many smart Canadians look to real estate. Not just any real estate investment, but ones that provide reliable income, steady growth, and insulation from retail or office volatility. One of the best places to start, especially if you have $1,000 to invest, might be Granite Real Estate Investment Trust (TSX: GRT.UN). It’s not a household name, but it definitely should be.
Source: Getty Images
Why Granite
Granite is a REIT that focuses almost entirely on logistics and industrial properties. So instead of shopping malls or apartment buildings, it owns warehouses and distribution centres. These are the buildings that keep supply chains moving and online orders arriving on time. It’s a part of the economy that’s become essential, especially as e-commerce continues to boom.
With tenants like Amazon and Magna International, Granite’s portfolio is both diversified and dependable. As of writing, it owns over 140 income-producing properties spread across Canada, the U.S., and Europe. That geographic spread adds some global resilience, while the tenant list speaks volumes about its reliability.
Proof in the numbers
Granite recently released its first-quarter earnings for 2025, and the numbers were strong. Rental revenue came in at $154.7 million, up from $138.9 million the year before. Net operating income was $125.7 million, also showing steady growth. It reported $91 million in funds from operations (FFO), or $1.46 per unit, which is up from $1.30 a year earlier. FFO is a key metric for REITs, and rising FFO usually means more potential cash for distributions.
Even better, adjusted funds from operations (AFFO) hit $88.4 million, or $1.41 per unit, compared to $1.22 the previous year. That’s an impressive increase and speaks to Granite’s efficiency and rising profitability. The AFFO payout ratio dropped to 60% from 67%, which shows the dividend is not just sustainable, it’s well-covered.
Another bright spot is the balance sheet. Granite finished the quarter with about $3.2 billion in total debt, but its leverage ratio sat at just 32%. That’s low compared to many REITs, giving it room to grow or weather headwinds. It also repurchased nearly a million units under its buyback plan, spending $63.6 million at an average price of $68.30. That kind of buyback shows the company thinks its own stock is undervalued, and it’s putting money behind that belief.
More to come
Occupancy remained strong at 94.8%, with rental spreads of about 10% over expiring leases. This means Granite isn’t just keeping its tenants, it’s raising rents as leases renew. It completed over 736,000 square feet of leasing activity during the quarter, a healthy sign in any real estate market. Long-term leases and high-quality tenants help protect its cash flow, even in uncertain times.
As of writing, Granite’s stock was trading at around $67.23. It pays an annual dividend of $3.40, which gives it a yield of roughly 5.1%. That’s a generous payout from a company with excellent financials and a defensive portfolio. Over time, those payments can compound, especially if reinvested.
What’s more, Granite is well-positioned for long-term growth. Demand for warehouses and logistics centres is only growing, thanks to shifts in global supply chains, rising e-commerce, and just-in-case inventory strategies. New construction for these types of buildings hasn’t kept up with demand, especially near urban centres. That bodes well for Granite, as higher demand and limited supply usually mean better rental income and property values.
Bottom line
So if you’re sitting on $1,000 and wondering where to put it, Granite REIT deserves your attention. You’re not just buying a stock, you’re buying into a growing global portfolio of essential infrastructure. You’re collecting income while you wait. And you’re owning a piece of something that isn’t going out of style anytime soon.
