If you’re dreaming about early retirement, chances are you’ve run the numbers. You’ve thought about how much you’ll need each month and how to make it last. One strategy more Canadians are leaning into is building a portfolio of dividend stocks that pay monthly. And among the handful of reliable monthly payers on the TSX, Automotive Properties Real Estate Investment Trust (TSX: APR.UN) stands out as one that could quietly help you get there faster.
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About Automotive Properties
This is a real estate investment trust (REIT) that focuses on owning and leasing properties used by automotive dealerships. It’s a niche business, but a surprisingly strong one. Dealerships tend to stay put for a long time. These sign multi-year leases, often with built-in rent escalations. That means consistent rental income, which flows through to investors.
As of writing, APR.UN trades around $11.40 and offers a monthly distribution of $0.067 per unit. That works out to $0.80 per year, or a yield of approximately 7%. In a world where high-yield monthly payers are hard to come by, that’s a very solid return. For someone aiming to retire early and live off investment income, this type of yield can go a long way in building dependable cash flow.
What’s more, that dividend has remained steady. The REIT has paid the same monthly amount for well over a year. There was a slightly higher distribution in December 2024, but the monthly $0.067 has been consistent since then. That kind of reliability can be useful when mapping out your monthly budget, especially in retirement.
The numbers
Now let’s look at the numbers behind the yield. Automotive Properties REIT reported net income of $72 million over the past year, on $94 million in revenue. That puts its profit margin around 76%, which is strong for a REIT. It’s using that income wisely, too. With a payout ratio of about 74%, it’s covering the dividend without stretching its cash flow too thin. That means the yield isn’t just attractive, it’s sustainable.
The REIT currently owns over 70 income-producing properties across key Canadian markets like Toronto, Montreal, Calgary, Edmonton, Regina, and Vancouver. These are located in major urban areas, where demand for commercial real estate tends to hold up well. The properties are leased primarily to the Dilawri Group, one of the largest automotive dealership groups in Canada, as well as other regional dealers. These long-term leases reduce vacancy risk and ensure rent keeps coming in, regardless of what’s happening in the broader economy.
The market cap of APR.UN sits at around $560 million, making it a mid-sized REIT on the TSX. It’s not too small to be risky, and not too large to be sluggish. APR.UN trades at a price-to-earnings ratio of about 12, which is considered relatively cheap in the current market. That valuation, combined with its yield and monthly payouts, makes it worth a serious look for early retirement strategies.
Bottom line
Of course, no investment is risk-free. APR.UN is heavily concentrated in one sector of automotive real estate and is geographically focused in Canada. If dealerships go through a wave of consolidation or closures, the REIT could feel the impact. And rising interest rates can weigh on REIT valuations. Still, the long-term leases, strong tenants, and inflation-linked rent increases provide a buffer.
One final reason this dividend stock is appealing for early retirement? Monthly income. Most dividend stocks pay quarterly. With APR.UN, you get a distribution every month like clockwork. That can reduce the need to hold large amounts of cash or to time your withdrawals. When you’re living off your portfolio, that matters. And right now, a $20,000 investment could bring in $1,298.40 each year or $108.20 every month!
| COMPANY | RECENT PRICE | NUMBER OF UNITS | DIVIDEND | TOTAL PAYOUT | FREQUENCY | INVESTMENT TOTAL |
|---|---|---|---|---|---|---|
| APR.UN | $12.32 | 1,623 | $0.80 | $1,298.40 | Monthly | $19,995.36 |
APR.UN isn’t going to shoot the lights out with growth. But for those looking to retire early, it doesn’t have to. It’s built to be steady, dependable, and income-generating. And that might just be the secret to getting to retirement a little sooner, and enjoying it a lot more.
