One of the main goals that Canadian investors have is to establish a monthly passive income stream. One way to establish that recurring income stream is by investing in a real estate investment trust (REIT).
REITs typically offer higher yields, recurring income streams backed by a stable tenant base, and a long history of monthly distributions.
There’s no shortage of great REIT investments that can handily meet that monthly passive income goal of $250, but there is one option that stands out.
That REIT is SmartCentres REIT (TSX: SRU.UN), and here’s why it is the REIT for your monthly income portfolio.
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Why SmartCentres REIT stands out
SmartCentres is one of Canada’s largest retail‑focused REITs. The REIT boasts a wide variety of retail tenants, giving it a diversified mix of some of the largest names in the retail sector. Among those names is Walmart, which is an anchor tenant for many of SmartCentres’s properties.
This provides SmartCentres with a defensive profile, which is uncommon among traditional brick-and-mortar retail. The anchor properties, and by extension the necessities that they sell, provide a steady stream of foot traffic that feeds the performance of the REIT.
Adding to that appeal is SmartCentres’s national footprint, as the REIT has properties spread across multiple markets in provinces across Canada. That scale highlights another often-dismissed advantage of this REIT, its sheer size.
With a market cap of $4.5 billion, SmartCentres can offer stability and less volatility when compared with smaller peers. That stability, along with its solid tenant base and large portfolio, allows SmartCentres to offer an attractive monthly distribution.
And that’s how investors can generate that $250 in monthly passive income.
SmartCentres monthly distribution
SmartCentres’s monthly payout is supported by predictable rental income from its high‑quality tenant base. That tenant base helps the REIT maintain strong occupancy levels across the portfolio. Those tenants typically have long-term leases that provide visibility into cash flows.
Additionally, the REIT’s focus on necessity‑based retail further supports stability, as these types of tenants tend to perform well across different economic environments.
The result is a generous yield that is well-covered and distributed on a monthly cadence. This stability is what makes SmartCentres a strong fit for an income strategy.
As of the time of writing, that yield works out to 6.93%. This makes it one of the better-paying income options on the market. For investors who want a balance of reliability and income potential, SmartCentres offers a compelling option.
How much to invest for $250 in monthly passive income
To generate $250 per month, the investment would need to hit the $3,000 in annual income point. Using SmartCentres’s current yield, that goal can be met with an investment of $45,000.
Here’s how SmartCentres’s yield translates into real monthly passive income.
| Company | Recent Price | No. of Shares | Dividend | Total (Annual) | Total (Monthly) |
| SmartCentres REIT | $26.70 | 1,685 | $1.85 | $3,117.25 | $259.77 |
For income investors, this capital requirement is more reasonable compared to other investments offering lower yields. Those investments would require significantly more money to reach the same income level and may not offer the same defensive appeal.
Prospective investors should also note that those not ready to draw on that income yet can choose to reinvest those distributions until needed. This allows any eventual income to continue compounding even further.
This becomes an even more powerful move if purchased within a tax-advantaged account like a Tax-Free Savings Account.
SmartCentres’s combination of yield, stability, and monthly payouts makes it a practical choice for investors aiming to build a reliable stream of monthly passive income.
