How to Set Up a $50,000 TFSA That Generates Nearly Constant Income

A consistent income stream from your TFSA is possible – here’s how to build it.

Key Points
  • Nexus Industrial REIT (TSX:NXR.UN) offers an 8.41% yield backed by strong industrial demand.
  • BTB Real Estate Investment Trust (TSX:BTB.UN) delivers steady income with improving leasing performance.
  • Together, these REITs can help turn a $50,000 TFSA into a reliable source of monthly income.

Investing for your future doesn’t have to be complicated or risky. With the right approach, you can build a Tax-Free Savings Account (TFSA) that generates nearly constant income while your capital continues to grow. Imagine putting $50,000 to work and receiving a consistent stream of passive income in return. While it may sound like a dream, it’s definitely achievable with the right mix of investments.

One effective way to do this is by investing in real estate investment trusts (REITs) such as Nexus Industrial REIT (TSX: NXR.UN) and BTB Real Estate Investment Trust (TSX: BTB.UN). These companies own and manage income-generating properties across Canada, allowing you to benefit from real estate without the challenges of owning physical assets.

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins

Source: Getty Images

Nexus Industrial REIT stock

Nexus Industrial REIT is focused on acquiring and managing industrial properties across primary and secondary markets in Canada. Its portfolio includes around 89 properties with a total gross leasable area of approximately 12.9 million square feet. The REIT generates steady income through rental payments from tenants that rely on industrial space for their operations.

After climbing nearly 8% over the last year, its stock currently trades at $7.61 per unit with a market cap of $742.1 million. More importantly for income investors, Nexus offers a monthly distribution with a yield of 8.4%.

The REIT’s recent performance has been supported by its strategic shift toward becoming a Canada-focused pure-play industrial REIT. In 2025, it completed two value-accretive projects, including a 325,000 square feet expansion in St. Thomas, Ontario, and a 115,000 sq ft small-bay industrial complex in Calgary. These developments are expected to support future NOI (net operating income) growth and strengthen recurring rental income.

In its latest results for the fourth quarter and full year 2025, Nexus reported solid operational performance despite some tenant-related vacancies. Its NOI came in at $33 million, supported by fair value gains of $20.3 million. Industrial same-property NOI rose 2.8% YoY (year-over-year) to $30 million, highlighting stable demand for its properties.

Looking ahead, Nexus expects mid-single-digit same-property NOI growth in 2026, driven by lease-up activity and improving rental spreads. With a focused strategy and strong asset base, it remains well-positioned for long-term income generation.

BTB REIT stock

BTB Real Estate Investment Trust owns and manages a diversified portfolio of industrial, suburban office, and necessity-based retail properties across Canada. Its portfolio includes 75 properties with a total leasable area of about 6.1 million square feet.

BTB units currently trade at $3.83 with a market cap of $338.1 million. Over the last 12 months, its stock has gained 12.3%. It also offers monthly dividends with a yield of 7.8%, making it another attractive option for income-focused investors.

The REIT delivered strong leasing performance in 2025, completing leases for 742,162 square feet, which represents 12.4% of its total portfolio. This included both renewals and new leases, reflecting its ability to retain and attract tenants. Notably, the average rent on renewed leases increased by 10.6%, pointing to solid asset performance.

From a financial standpoint, BTB reported rental revenue of $130.1 million for 2025, slightly higher than the previous year. Its cash same-property NOI rose 2% YoY to $78.5 million. AFFO (adjusted funds from operations) per unit increased by $0.007 to $0.388, while the payout ratio improved to 77.3%, indicating sustainable distributions.

Moreover, BTB is focusing on portfolio optimization and strategic expansion. It recently acquired three industrial properties in Alberta for $31.5 million, adding 143,118 square feet to its portfolio. These moves could strengthen its industrial exposure and support long-term growth.

Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool recommends Nexus Industrial REIT. The Motley Fool has a disclosure policy.

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