Canadians looking to generate a steady income stream at a low cost should consider investing in quality stocks that offer attractive dividend yields. One such real estate investment trust is Dream Industrial REIT (TSX:DIR.UN). Valued at a market cap of $3.5 billion, the real estate investment trust offers a dividend yield of 5.7%.
Dream Office Real Estate Investment Trust offers you exposure to the real estate sector, which remains essential as people need places to live and work.
In the last 10 years, Dream Industrial REIT has returned just 55% to shareholders. However, if we adjust for dividend reinvestments, cumulative returns are closer to 187%.
Today, Dream Industrial REIT manages a global portfolio of 338 industrial assets comprising 550 buildings with approximately 72.9 million square feet of leasable space across Canada, Europe, and the United States.
These properties are located in strategic areas in key markets. The REIT aims to deliver strong total returns through secure distributions, net asset value growth, and increasing cash flow per unit.
This strategy is supported by a high-quality portfolio and an investment-grade balance sheet, making it an attractive option for those seeking exposure to industrial real estate.
A strong performance in Q3 2025
Dream Industrial REIT delivered solid third-quarter results, showcasing the resilience of its global industrial property platform amid ongoing market uncertainties. The company reported funds from operations (FFO) per unit of $0.27, up 4.3% year over year. This indicates a payout ratio of 65% given a quarterly payout of $0.175.
The REIT leased over 250,000 square feet during the quarter, pushing occupancy up 40 basis points to 94.5%. Management continues to execute on its capital recycling strategy, completing sales of two nonstrategic assets and working through roughly $150 million in additional potential dispositions.
The proceeds are being redeployed into higher-quality acquisitions that align with the REIT’s long-term portfolio vision. Year to date, Dream Industrial has acquired over $100 million worth of infill mid-bay industrial properties targeting stabilized yields above 7%.
Recent wins include a 130,000-square-foot German asset acquired at an over 8% going-in cap rate and a 90,000-square-foot logistics property in the Netherlands leased within the first month at yields exceeding 8%.
In Canada, the REIT achieved roughly 40% spreads in the third quarter, after adjusting for one fixed-rate renewal, matching performance from the prior year.
Notably, Dream Industrial signed over 1.8 million square feet of automotive-sector leases across its Canadian and European portfolios this year, at average spreads exceeding 40% and mid-3% contractual rent escalators. These deals involve blue-chip multinational names responding to evolving trade dynamics and supply chain adjustments.
A robust balance sheet
Dream Industrial REIT strengthened its balance sheet by issuing $200 million in Series G unsecured debentures at an all-in rate of 4.3%, with the proceeds to be swapped into euros at an effective rate of 3.7%. The company ended the quarter with over $828 million in total liquidity and a net debt-to-EBITDA (earnings before interest, tax, depreciation, and amortization) ratio of 8.1 times, well within its target range.
Dream Industrial is making progress on strategic initiatives beyond traditional leasing. The solar program now has a pipeline representing over 120 megawatts of potential generation capacity.
On the data center front, management secured deposits for 105 megawatts of power capacity at two Canadian sites with phased delivery over the next two to five years. The REIT is actively engaging with operators and end users to explore value creation opportunities from this power capacity.
Given consensus price targets, Dream Industrial REIT trades at a discount of 16%. After accounting for its dividend, cumulative returns could be closer to 22%.
