How to Put $25,000 in a TFSA to Work Generating Meaningful Cash Flow

Canadians aren’t just feeling the cost of living at the grocery store. They’re feeling it in some of life’s biggest decisions. A recent BMO Real Financial Progress Index found that 37% of divorced or separated Canadians say the financial cost of divorce or legal separation kept them in a marriage longer than they wanted. The same survey said economic uncertainty influenced the timing of their separation. More than half said the rising cost of living made the financial impact of divorce harder than expected.

That’s a heavy reminder of how much financial flexibility counts, and why planning to create a $25,000 TFSA can help. One simple way to get there is with monthly-paying REITs. Primaris REIT (TSX: PMZ.UN), Crombie REIT (TSX: CRR.UN), and Allied Properties REIT (TSX: AP.UN) all pay monthly distributions.

PMZ

Primaris real estate investment trust (REIT) owns enclosed shopping centres across Canada. Shopping malls may not sound like an obvious income pick after years of retail disruption, but Primaris focuses on enclosed centres in markets where its properties often hold strong local positions. Many of these assets serve as community shopping hubs, not just fashion-heavy malls.

The distribution is useful for Tax-Free Savings Account (TFSA) investors. Primaris currently pays $0.07 per unit each month, or $0.88 annualized, yielding 4.2% at writing. Its payout ratio was 51.8% of funds from operations (FFO) in the first quarter of 2026. That gives the REIT room, even though management noted the quarter was affected by seasonal factors.

The risk is retail real estate. Primaris dealt with pressure from disclaimed HBC leases, and occupancy fell from last year. Releasing space takes time. Still, if management fills vacancies and keeps rents stable, the monthly income looks appealing.

CRR

Crombie REIT offers a more defensive real estate angle. It owns grocery-anchored retail properties, mixed-use assets, and development sites, with a close relationship to Empire and Sobeys. That grocery connection gives Crombie a steadier base than many retail landlords. Canadians may pull back on extras, but they still buy food.

Crombie currently pays $0.075 per unit each month, or $0.90 annually, producing a 5.2% yield at writing. That income can add up quickly in a TFSA. The appeal here is stability. Grocery-anchored properties tend to attract repeat traffic. They can also support pharmacies, banks, restaurants, and service tenants in the same plazas. Crombie also has long-term development potential as it redevelops well-located sites.

The risk is debt and development execution. REITs need capital, and higher interest rates can make growth more expensive. Large redevelopment projects can also take years before they add cash flow. Even so, Crombie looks like the steadier middle piece in this three-REIT TFSA strategy.

AP

Allied Properties is the highest-risk name of the group, but it also offers the biggest yield. The REIT owns distinctive urban workspace in major Canadian cities. Its buildings tend to serve knowledge-based companies, creative firms, technology tenants, and urban office users.

The current monthly distribution is $0.06 per unit, or $0.72 annualized, coming to a 7.1% yield at writing. That creates a high cash yield at today’s depressed unit price. For a TFSA investor, the appeal is clear: monthly income plus possible recovery upside if office sentiment improves.

But this isn’t a set-it-and-forget-it stock. Office real estate remains under pressure. Hybrid work, tenant uncertainty, leasing costs, and financing pressure all weigh on the sector. Allied also reduced its distribution, which is an important reminder that high yields can change. That said, the lower payout may give Allied more flexibility. If leasing stabilizes and investors regain confidence in urban office assets, the units could offer both cash flow and capital recovery.

Bottom line

A $25,000 TFSA doesn’t need to be complicated. Primaris adds retail income. Crombie adds grocery-anchored stability. Allied adds higher-yield recovery potential. Simple! Plus $7,000 in each can get you right to the front door of that $25,000 goal.

Together, these could turn unused TFSA room into a monthly cash-flow machine. Done carefully, this approach can make $25,000 feel far more productive.