If you haven’t yet tried turning your stock portfolio into a monthly income stream, maybe it’s time you did — especially when there are options in Canada delivering generous monthly dividends, backed by reliable cash flows and prime properties. Without any wild speculation or complicated bets, you can let the real estate sector work for you.
Right now, there’s one Canadian real estate investment trust (REIT) that I find really attractive due mainly to its high occupancy levels, expansion into new developments, and continuous monthly distributions without a hiccup. In this article, I’ll reveal one of the most consistent income-generating Canadian REITs and give you more reasons why it looks so appealing to buy right now.
A top Canadian REIT for reliable monthly income
The top Canadian REIT I’m watching right now is SmartCentres Real Estate Investment Trust (TSX:SRU.UN). As one of the most recognizable names in the Canadian real estate space, it has a massive portfolio of 197 properties across the country. The company mainly focuses on value-oriented retail spaces, while also expanding into residential, self-storage, office, and industrial developments.
Its stock has climbed 10% over the last year with the help of improved investor sentiment around easing interest rates and its strong execution strategy. As a result, it currently trades at $27.05 per unit with a market cap of $3.9 billion. At this market price, it offers an annualized dividend yield of 6.8%. And yes, those dividends come in monthly.
Strong leasing momentum and retail stability
Notably, SmartCentres reported an impressive 98.6% occupancy rate in the second quarter of 2025, which speaks volumes about the strength of its tenant base. The company managed to lease more than 147,000 square feet during the quarter, while it also extended or finalized 82% of leases maturing in 2025. Similarly, it achieved an 8.5% rent growth on these renewals, excluding anchor tenants.
On the brighter side, many big companies like Pacific Fresh and Costco took possession of large retail spaces last quarter, showing the continued demand for SmartCentres’s locations. This strong leasing activity is enough to support its reliable monthly payouts and add real confidence to its income outlook.
Stable growth in revenue and profits
Last quarter, SmartCentres REIT’s net rental income jumped 6.1% YoY (year over year) to $141.3 million due to strong leasing and higher rental rates. Meanwhile, its funds from operations, which is a key metric for REITs, also grew 16% YoY to $0.58 per unit.
This growth allowed the REIT to bring its payout ratio down from 98.8% to 84.3%. That’s a healthy improvement, showing it’s generating more than enough cash to support its monthly dividend distributions.
Its growth plans go beyond rent collection
One of the main factors that makes SmartCentres a top Canadian REIT is how actively it’s focusing on its development pipeline. Interestingly, it has a massive 58.9 million square feet of zoned development potential. In addition, 0.8 million square feet is already under construction right now, including new residential townhomes, self-storage facilities, and mixed-use developments.
In another major move, SmartCentres recently priced a $500 million unsecured debenture offering. This offering will help it refinance upcoming debt and free up capital for further growth.
Overall, with its strong retail roots, consistent rental income, and active development pipeline, SmartCentres REIT looks like an appealing monthly dividend stock that’s not just delivering income today but also preparing for tomorrow.
