If you’re hunting for monthly income, PRO Real Estate Investment Trust (TSX: PRV.UN) deserves a closer look. This Canadian industrial REIT yields 7.3% and pays unitholders every month.
Here’s our take: PRO REIT is one of the more compelling income plays in Canadian real estate right now. The REIT has repositioned itself into a focused industrial portfolio, its properties are nearly fully leased, and management is guiding for multi-year cash flow growth.
For income-focused investors, that’s a compelling combination. Let’s break down why.
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PRO REIT’s industrial pivot is already paying off
PRO REIT spent the last three years transforming itself. It sold off non-core office and retail properties and went all in on light-industrial real estate.
By year-end 2025, industrial properties made up 90.5% of base rent, up from just 80.8% a year earlier. The company owns 105 properties totalling 6.4 million square feet, spread across strong secondary markets including Halifax, Winnipeg, and Ottawa.
According to CBRE, all three of those core markets outperformed the national average for market rent growth in 2025. Occupancy sits at 95.4%. Strip out one large vacant property in Saint-Hyacinthe, Quebec, where a new 10-year lease is nearly finalized, and that figure climbs to approximately 98.1%.
The REIT owns and operates a tight, high-performing portfolio.
The numbers behind the monthly dividend
PRO REIT’s financial metrics are hard to ignore.
- For full-year 2025, property revenues hit $104.1 million, up 4.9% year over year.
- NOI, or net operating income, came in at $63.4 million, up 8.4%, even as the REIT owned 10 fewer properties than the year before.
- Same-property NOI climbed 8% for the year, driven by a robust 9.1% gain in the industrial segment alone.
- Fourth-quarter FFO (funds from operations) rose 14.3% compared to the same period last year.
CEO Gordon Lawlor stated on the company’s Q4 2025 earnings call that PRO REIT expects 7% to 9% annual FFO cash flow growth through 2028, which should support consistent dividend hikes. That’s a meaningful multi-year runway.
Leasing momentum is equally impressive. Management has already renewed 68.2% of the gross leasable area (GLA) maturing in 2026, with a 33.8% positive rent spread. Five leases coming up for renewal in 2026 include rent increases of 40% to 45%, which should drive the top line higher.
What risks should investors know about?
No investment is without risk.
The AFFO (adjusted funds from operations) payout ratio for PRO REIT came in at 99.1% in Q4, which is not sustainable over the long term. The higher payout was tied to the timing of 17 property sales in 2025 and equity issued for the Winnipeg acquisition. Management expects this ratio to improve as the new properties contribute full earnings.
The adjusted debt-to-gross book value ratio is 48.8%, down from 50.3% a year ago. About $157.1 million in mortgages mature in 2026, at a weighted average interest rate of 3.7%.
Management is already securing refinancing and recently locked in a new seven-year mortgage at approximately 1.58% over benchmark: a rate the CEO called the best margin the company has ever achieved.
Is the monthly dividend stock worth owning
PRO REIT won’t make headlines the way a tech stock might. However, you get a 7.3% yield and a monthly payout. And behind that yield, you get a portfolio of in-demand industrial properties with rising rents, strong occupancy, and management that has already delivered on a clear three-year strategic plan.
PRO REIT, now a pure-play industrial REIT in Canada’s most resilient secondary markets, checks most boxes for income-focused investors.
If monthly cash flow at a 7.3% yield sounds appealing, this stock is worth putting on your radar today.
