Investors looking for passive income opportunities have plenty of options to choose from. However, one of my top choices for those in this boat is to consider real estate investment trusts (REITs), which provide diversified exposure to portfolios of real assets over the long term.
As it happens, there are a number of top Canadian options to choose from in this space, for those so inclined. Here are three of my top picks in this regard right now
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Brookfield Renewable Partners
Brookfield Renewable Partners (TSX:BEP.UN) operates one of the world’s largest pure‑play renewable power platforms, with more than 40 gigawatts of hydro, wind, solar, and storage capacity across multiple continents. For those bullish on the rise of renewable energy, that’s been a great thing.
Of course, shifting geopolitical priorities may have changed the broad narrative around this company. But even in a less-friendly world, Brookfield Renewable has seen its share price trend higher (see chart above).
I think a lot of that has to do with Brookfield’s scale, which is important because long‑duration, inflation‑linked contracts and high‑margin hydro assets support stable cash flows, even when power markets get volatile. That’s evidenced by gross margins north of 50% and funds from operations that grew roughly 10% year over year in 2025.
On valuation, investors are getting paid to wait, and I really do think this REIT’s 4.8% dividend yield makes it one of the top dividend stocks in the market right now given its backdrop and long-term growth upside. This is a long-term holding, but one which looks reasonable even after its recent rise.
Dream Industrial REIT
In terms of other real estate classes I’m currently interested in, industrial real estate is right up there. In that vein, Dream Industrial REIT (TSX:DIR.UN) is another excellent choice for long-term investors.
Why? Well, Dream Industrial sits right at the intersection of e‑commerce, logistics, and near-shoring. The trust owns a high‑quality portfolio of distribution and light‑industrial properties across key Canadian, U.S., and European markets.
The key fundamental driver for this REIT is embedded rent upside. Indeed, in 2025, the REIT signed over 10 million square feet of leases at roughly 30% rental spreads. Notably, expiring Greater Toronto Area space re‑leased at an eye‑popping 58% spread, which sets up multi‑year net operating income growth as below‑market rents roll to current levels.
Occupancy is firmly in “tight market” territory at around 96%. And management expects comparable‑property NOI growth to remain strong, with guidance pointing to mid‑single‑digit to high‑single‑digit growth as those spreads flow through the income statement. Against that backdrop, units recently traded at a discount to an estimated fair value around 10% higher than the market price, while still offering an attractive distribution that’s backed by solid coverage and a growing cash flow base.
Killam Apartment REIT
Last, but not least, we have Killam Apartment REIT (TSX:KMP.UN).
As its name suggests, Killam is a residential-focused REI, with a concentration in Eastern Canada where housing supply remains structurally tight. The 2025 numbers tell a simple but powerful story. With revenue rising to around $383 million driven by growth in same‑property NOI and funds from operations, this is a REIT which has continued to grow its distribution to shareholders – something I think is critical to its long-term investing thesis.
On top of steady internal growth, Killam is leaning into portfolio recycling, modest acquisitions, and debt reduction to strengthen its balance sheet and improve the quality of its asset base over time. With multiple brokers reiterating buy ratings and one recent target around 20 dollars per unit, investors today are getting a dependable monthly payout backed by durable rental demand. That’s not inclusive of the potential upside for investors from FFO (funds from operations) growth as the market narrows what some see as a valuation gap.
