Let’s dive into one of the most appealing monthly paying dividend stocks on the TSX right now: Boardwalk Real Estate Investment Trust (TSX:BEI.UN). In a time when high interest rates, inflation worries, and financial uncertainty have left many Canadians searching for reliable passive income, this 2.3% yielder stands out.
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About Boardwalk
Boardwalk REIT owns and operates over 34,000 residential suites across Canada. It specializes in high-quality, affordable housing, with most of its portfolio located in Alberta, Quebec, and Saskatchewan. This focus on affordability has helped it thrive in volatile times. Rents remain accessible, and demand remains strong, even as some Canadians pull back on spending. In Q1 2025, the trust maintained a high occupancy rate of 97.8%, with same-property rental revenue growing 7.5% year over year.
Let’s look closer at the recent results. Funds from operations (FFO) hit $1.06 per unit, up 11.6% from the same period last year. Net operating income (NOI) climbed 10.3%, while profit totalled $133.8 million. Despite a steep year-over-year drop in headline profit, much of that reflects one-time fair value gains in Q1 2024. What matters more is the operational strength, which was clear across the board.
Distributions are generous and growing. Boardwalk declared monthly distributions of $0.135 per unit for June, July, and August 2025. That works out to $1.62 annually and translates into a 2.3% yield based on the current unit price around $71.50. Even better, its payout ratio is low at just 35.3% of Q1 FFO. That gives it ample room to maintain and raise distributions without putting pressure on operations. Right now, a $30,000 investment could bring in $56.65 every month!
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| BEI.UN | $71.50 | 419 | $1.62 | $679.78 | Monthly | $29,948.50 |
More to come
On the valuation front, BEI.UN trades at an implied value of $192,000 per suite. Management believes this represents a 6% cap rate on trailing NOI, which is attractive for real estate of this quality. Its net asset value sits at $96.07 per unit, meaning it trades at a big discount to what the underlying properties are worth. That signals value for long-term investors.
Boardwalk is also actively enhancing its portfolio. It recently repurchased nearly half a million trust units and closed on two acquisitions, including the Elbow 5 Eight community in Calgary. This kind of capital recycling of selling older assets to buy or upgrade better ones is a key part of its strategy. At the same time, it’s investing in building upgrades, with 73% of the portfolio improved since 2017. These moves help raise rents and improve margins.
The trust also manages its debt well. About 96% of its mortgages are CMHC-insured, and its debt-to-assets ratio declined slightly to 39.9%. It renewed $57 million of maturing mortgages in Q1 at an average rate of just 3.8%, well below current commercial borrowing costs. This means its balance sheet is both flexible and resilient, a rare combo in today’s real estate market.
Foolish takeaway
There’s no sugar-coating the risks in this sector. Higher interest rates have made it more expensive to refinance debt and have lowered property values in many markets. But Boardwalk’s strategy of sticking to affordable housing and staying disciplined with debt has worked in its favour. Investors can take comfort in the company’s strong financials and management’s track record of navigating challenging cycles.
The big picture? This dividend offers something few others can: a dependable, tax-advantaged monthly payout, backed by a hard asset with growing income. With inflation lingering and concerns about job security rising, Boardwalk’s focus on affordable, quality homes is more relevant than ever. And investors are on board, with shares up 13% year-to-date.
So, if you’re looking to turn your portfolio into a monthly income machine, BEI.UN deserves serious consideration. A 2.3% yield with room for growth, a rock-solid balance sheet, and a discount to NAV? That’s not easy to find. For long-term investors who want income and peace of mind, this REIT checks all the boxes.
