If you’re looking for one no-brainer Canadian stock to buy and hold forever, Granite REIT (TSX:GRT.UN) might just be the one. It may not grab headlines like flashy tech companies or crypto-fuelled plays, but it quietly delivers exactly what long-term investors want: predictable income, strategic growth, and resilience through economic cycles.
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What happened?
Granite spent the past year strengthening every part of its business. Over the last 12 months, it’s up more than 8% while also dishing out a dividend that yields over 4%. That combination of growth and income is tough to find these days, especially from a stock with global exposure and institutional-quality properties across Canada, the U.S., and Europe.
In the second quarter of 2025, Granite generated net operating income of $123.4 million, a 6.6% bump from the same period last year. That growth came from rent adjustments, leasing momentum, and development projects that went live in Canada, the U.S., and the Netherlands. Same-property net operating income (NOI) on a cash basis rose 4.6%, showing healthy underlying demand. Funds from operations (FFO) hit $85.4 million, up from $83.5 million the year before, and adjusted funds from operations climbed to $75.1 million. That kind of steady financial improvement is exactly what you want in a dividend stock you’re planning to own for decades.
More to come
What’s really impressive is that occupancy rose to 95.8% in the quarter, and by August it was already up again to 96.5%. That kind of tenant stability shows Granite isn’t just collecting buildings but curating a portfolio positioned for performance. Its properties support logistics, e-commerce, and industrial activity, making them vital to the supply chain. And while office REITs struggle to fill space, Granite has been locking in new tenants at an average lease spread of 18% over expiring rents.
The REIT also scooped up two modern Florida distribution centres for about $49.5 million. Both properties were built in 2021 and are fully leased with an average remaining term of nearly seven years. They’re expected to deliver a 5% yield on day one and grow that number by more than 15% in just two years. That’s the kind of move that keeps long-term cash flow trending up while building asset value.
Granite isn’t just relying on acquisitions to grow. In the U.S. alone, it signed major new leases at vacant spaces in Kentucky, Georgia, and Indiana, transforming unproductive assets into income generators. And it did all this while repurchasing over $80 million worth of its own units during the quarter, showing confidence in its valuation and commitment to delivering shareholder returns.
Considerations
If you’re the type of investor who likes a bit of balance sheet health with your dividend, Granite doesn’t disappoint. Yes, net leverage rose to 36%, but that’s still well within the REIT comfort zone. And it’s worth noting the increase was mostly driven by the reclassification of certain assets as held for sale and temporary draws on credit to fund share buybacks. Nothing alarming here, just smart capital allocation.
Meanwhile, payout ratios remain disciplined, with adjusted FFO payout sitting at 69% for the quarter. That’s a sustainable level that still gives the REIT room to increase distributions over time without overstretching. And right now, a $7,000 investment could bring in about $300 annually, dished out monthly!
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| GRT.UN | $79.23 | 88 | $3.40 | $299.20 | Monthly | $6,971.88 |
Bottom line
When you zoom out, Granite checks every box. Steady income? Check. Smart growth? Check. Global footprint? Check. Defensive sector? Absolutely. In a world where economic headwinds come and go, having a real asset-backed income stream that quietly compounds over the years is the kind of advantage that builds wealth slowly and then all at once.
If you want a sleep-well-at-night stock you can tuck into your portfolio and just let ride, Granite REIT is the kind of pick that keeps on paying. It’s boring in the best way, and sometimes, boring is exactly what your portfolio needs.
