In a time when the market seems to swing more often than a playground swing set, income-focused investors are looking for something steady, something they can rely on even when the rest of the market feels like a guessing game. That’s exactly what makes SmartCentres Real Estate Investment Trust (TSX:SRU.UN) a standout. It pays a high monthly dividend with surprising stability and growth potential underneath the hood.
Recent market moves
At a recent share price of around $26, SmartCentres REIT offers a hefty dividend yield of about 7.1%, thanks to its $1.85 annual dividend, distributed monthly. That kind of income rolling in every single month is no small thing, especially when the rest of your portfolio might be feeling the heat from interest rate uncertainty, tech volatility, or oil price shocks.
But let’s get into the numbers. The dividend stock reported a strong first quarter for 2025. Funds from operations (FFO) per unit came in at $0.56, up 17% from $0.48 the year before. That increase wasn’t just a fluke. It came from core business strength. Net operating income (NOI) grew by $7.4 million, and Same Properties NOI jumped 4.1% year over year. Excluding anchor tenants like Walmart, the number climbs to 6.7%.
More to come
Speaking of Walmart, one of SmartCentres’ crown jewels is its deep relationship with the retail giant. This quarter, Walmart took possession of a new 110,000-square-foot supercentre in South Oakville, with a planned opening soon. This isn’t just about having a big-name tenant, it shows how SmartCentres remains attractive to top retailers, even in an environment where many shopping centres are seeing vacancies rise.
The REIT’s secret weapon might just be its development pipeline. It has 59.1 million square feet of zoned, mixed-use development permissions across Canada. That gives it a long runway for future growth. In Q1 alone, the REIT advanced several projects, including townhomes in Vaughan (where 90% of units are now closed) and self-storage facilities in major markets like Toronto, Montreal, and Burnaby. Notably, its Vaughan ArtWalk condo project is also moving along, with 93% of Tower A units already pre-sold.
Future winner
All this development means SmartCentres isn’t just sitting around collecting rent. It’s actively building future sources of revenue and diversifying its portfolio. That’s a big deal in the REIT world, where some peers are shrinking or shedding assets to stay afloat. Here, it’s the opposite: SmartCentres is planning for more income, more tenants, and more value down the line.
The occupancy rate tells a solid story, too. As of March 31, 2025, in-place and committed occupancy stood at 98.4%. That’s extremely high in any environment, let alone one where many office and retail REITs are struggling to fill space. And it’s not just about keeping tenants, it’s about growing rent. On lease renewals, the REIT managed an average increase of 8.4% (excluding anchor tenants). That’s strong pricing power.
Bottom line
Of course, no stock is bulletproof. The REIT did post a small net loss per unit of $0.05, but that’s a big improvement from a $0.12 loss a year earlier. The dip came from non-cash fair value adjustments and one-time severance costs tied to deferred development activities. In other words, the actual cash-generating business is strong, and getting stronger. Which means that investment is safe. In fact, if you were to put $7,000 towards this dividend stock, today that could bring in almost $500 in annual income, or $41.50 each month!
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| SRU.UN | $26.00 | 269 | $1.85 | $497.65 | Monthly | $6,994.00 |
In a volatile market, many investors might be tempted to chase growth stories with big promises but no profits. SmartCentres isn’t flashy, but it is dependable. It offers exposure to stable retail tenants, long-term residential development potential, and a monthly income stream that hasn’t missed a beat.
