A Tax-Free Savings Account (TFSA) is an ideal way to create monthly income for any investor. Every dollar you earn inside it is yours to keep with no taxes on dividends, no taxes on withdrawals, and no penalties for taking that income whenever you need it. It’s one of the simplest ways Canadians can build financial breathing room. Whether that means covering bills, padding savings, or creating the kind of low-stress cash flow that brings real peace of mind.
SRU
SmartCentres REIT (TSX:SRU.UN) is one of Canada’s largest retail-focused real estate investment trusts (REIT). It’s built around a massive portfolio of open-air shopping centres anchored primarily by Walmart. That anchor partnership is an underrated advantage. Walmart locations attract consistent foot traffic, making surrounding tenants more stable and attractive.
SmartCentres has also expanded beyond retail, pushing into multi-residential projects and mixed-use developments that add new income streams and long-term growth potential. This combination of essential retail, reliable tenants, and urban development gives SRU.UN a diversified base that holds up even when economic conditions get choppy.
Into earnings
At writing, the REIT’s portfolio spans more than 180 properties across the country. This makes it one of the most geographically diversified retail landlords in Canada. Its focus on necessity-based retail means tenants tend to be recession-resistant. Think grocery stores, pharmacies, and value retailers, which keep occupancy high. For TFSA investors who want predictability, SmartCentres offers a rare blend of size, stability, and a long record of consistent distributions.
Recent earnings reinforced SmartCentres’ steadiness. The REIT maintained strong occupancy levels at 98.7%, supported by the resilience of Walmart-anchored centres and the continued strength of essential retail tenants. Funds from operations (FFO), the key metric for REIT profitability, held firm at an adjusted FFO of $0.56.
This showed that rental income remained stable even while parts of the commercial real estate market faced pressure. SmartCentres continued progressing on its multi-phase development pipeline as well, including residential towers, seniors’ housing, and purpose-built rentals. All this will diversify cash flow even further over the coming years.
More to come
Looking ahead, management also maintained its conservative approach to debt and liquidity, reaffirming that it’s positioned to weather higher interest rates better than many smaller or less diversified REITs. The distribution remained comfortably supported by cash flow, and guidance indicated no signs of stress in the underlying business. In short, the earnings demonstrated that SmartCentres is doing what long-term REITs are meant to do. That’s maintain stability, protect income, and execute on growth without taking on excessive risk.
All this makes SRU.UN an ideal stock to create monthly income in a TFSA. Its distributions are both steady and tax-free, turning your investment into a predictable monthly paycheque. With Walmart anchoring the majority of its properties, SmartCentres enjoys one of the strongest tenant profiles in Canadian retail, giving its income stream a level of dependability that smaller or trend-based REITs can’t match.
The yield of 7.3% at writing is attractive, the payout is well covered, and the company’s long-term development projects offer the potential for rising cash flow and future distribution increases. Even today, $30,000 could bring in MONTHLY INCOME.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL ANNUAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| SRU.UN | $25.11 | 1,194 | $1.85 | $2,208.90 | Monthly | $29,989.34 |
Bottom line
For TFSA investors, this combination of stability today, growth tomorrow is exactly what creates lasting, low-maintenance monthly income. You’re not chasing risky yield or hoping for turnarounds. You’re owning essential real estate that keeps paying you every month, rain or shine. And because all of that income stays inside your TFSA without taxes eating into it, SRU.UN becomes one of the most effortless ways to turn a portfolio into a reliable income engine for years to come.
