The REIT That Could Turn $10,000 Into Lifetime Income

If you want a real estate investment trust (REIT) that can turn $10,000 into lifetime income, the goal here is to find the one that can keep paying and keep growing, for decades. The power of compounding comes from consistency, not speed. When you pick the right kind of REIT, your $10,000 can become a quiet income machine that grows with you, weathering market cycles and inflation without losing its footing. So let’s look at what to look for, and one REIT that stands out on the TSX today.

What to watch

The first thing to look for is sustainability of the payout. A big yield might look tempting, but it only matters if it’s built on stable cash flow. Check the payout ratio, which is the percentage of funds from operations (FFO) being distributed to investors. Anything regularly above 90% leaves little margin for error. A sweet spot sits around 70% to 80%, which signals the REIT can comfortably fund its distributions and still reinvest for growth.

Next, think about the type of properties. Lifetime income depends on tenants who can keep paying rent through every economic cycle. That’s why the most resilient REITs own essential assets like industrial spaces, grocery-anchored retail, infrastructure, or healthcare. These properties have long leases and high retention rates, which keep occupancy stable even during downturns.

Balance sheet strength is another key pillar. A REIT can only survive long term if it manages debt wisely. Look for a debt-to-gross book value ratio below 45% and a large share of fixed-rate debt. Strong liquidity, a staggered debt maturity schedule, and a clear strategy for refinancing all signal management is thinking long term, not chasing short-term growth. From there, see how the dividend has grown over time, and how the REIT is valued. You want to make sure those payouts keep increasing, and you buy at a great price in today’s market.

Consider NWH

All taken into consideration, NorthWest Healthcare Properties REIT (TSX:NWH.UN) looks attractive at first glance. It offers a high yield, exposure to essential services, and a global footprint in the healthcare real estate space. The REIT owns and manages a portfolio of medical office buildings, hospitals, and clinics across the world. Long-term leases, often tied to inflation, and occupancy rates typically above 95% mean that the properties themselves are sound.

The biggest hurdle for NorthWest has been its debt load. Rising interest rates hit the REIT hard because a large share of its borrowings were variable or coming due for refinancing at higher rates. That pressure forced management to cut its distribution by nearly half in 2023, a painful but necessary move to conserve cash. Still, there are reasons for cautious optimism. The REIT has been selling non-core assets and using proceeds to pay down debt. It’s also restructuring joint ventures to unlock capital, a process that should lower leverage and boost stability over time. Management’s priority is clear: repair the balance sheet first, then focus on growth.

The stock currently trades at a deep discount to its net asset value (NAV) at 0.82 times book value, implying that the market doesn’t yet believe in a turnaround. For long-term, income-focused investors, that discount could become a hidden opportunity if management executes. If the REIT can lower debt, refinance at better terms, and resume modest distribution growth, today’s depressed price could deliver strong capital gains along with a healthy yield. In fact, here’s what $10,000 could earn from dividends immediately.

Bottom line

In short, NorthWest isn’t yet a lifetime income REIT; it’s a recovery play. The underlying business is strong, but until its debt profile and dividend stability match its property quality, it’s not a foundation stock. If management stays disciplined and healthcare demand keeps rising, NorthWest could eventually earn that label.