Your Tax-Free Savings Account (TFSA) doesn’t need to sit idle while you wait for long-term capital gains. In fact, it can send you a reliable stream of monthly cash. That income becomes even more useful when the company behind it is actively improving its operations and locking in higher returns.
And Primaris Real Estate Investment Trust (TSX: PMZ.UN) seems to be doing exactly that. This Toronto-headquartered Canadian retail landlord has recently made strong progress filling former HBC space, signing new tenants, and identifying fresh sources of future cash flow. Its shares have delivered impressive gains lately, even while its monthly distribution continues to offer a 3.9% annualized yield.
In this article, I’ll talk about why this Canadian monthly dividend stock looks compelling for TFSA investors who want reliable income and growth.
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A monthly income stock with strong momentum
If you don’t know it already, Primaris owns and manages enclosed shopping centres across Canada. Its portfolio includes properties such as Dufferin Mall, Oshawa Centre, Southgate Centre, and Lime Ridge Mall.
At the time of writing, its stock was trading at $22.67 per share, giving the real estate investment trust (REIT) a market cap of $2.7 billion. It pays a monthly distribution of $0.07333 per unit, equal to $0.88 annually, and a 3.9% annualized yield.
Interestingly, Primaris REIT stock has soared by 50% over the last 12 months and 45% so far in 2026. The recent strength is mainly tied to its improving leasing visibility, portfolio upgrades, and expectations for higher rental income. Its June update showed especially strong progress in replacing former HBC space with new tenants. That combination of monthly income and price momentum makes this Canadian monthly-paying stock attractive.
Latest results show a resilient business
For long-term investors, the monthly payout becomes even more reassuring when the underlying cash flow remains well covered. In the first quarter, Primaris REIT’s total rental revenue rose 17.9% year over year (YoY) to $177 million, while its cash net operating income, or NOI, climbed 15.2% to $92.6 million. These gains mainly reflected income from acquisitions completed during 2025.
With this, the REIT’s quarterly net income jumped 34.6% YoY to $41.9 million. However, funds from operations, or FFO, per diluted share declined 3.2% from a year ago to $0.425 due to higher interest costs, more units outstanding, increased administrative expenses, and weaker same-property NOI.
But we need to remember that in the previous-year quarter, Primaris included $2.5 million of property tax recoveries. So, excluding that benefit, its FFO per share would have grown 1.6% in the latest quarter.
Meanwhile, its distribution remains well supported as the company reported an FFO payout ratio of 51.8%. It ended the March quarter with $626.8 million of liquidity.
A visible path to higher cash flow
By late June, Primaris expected about $52 million in additional annual cash NOI to start coming in by June 2029. About $22 million of that is expected to come from former HBC locations.
The REIT revealed 84% of the former HBC space was leased or in advanced negotiations. About 58% was already covered by long-term lease agreements. The re-leased area is expected to generate $14.9 million in annual rent, compared with just $3.7 million previously paid by HBC.
Primaris also identified excess land valued at $275 million to $375 million that could be monetized. It plans to recycle that capital into its core shopping centres rather than develop residential properties itself.
These growth initiatives, combined with its reliable monthly distributions, a modest payout ratio, and visible rental growth, make Primaris an attractive TFSA stock for investors seeking income today and stronger returns over time.
