If I’m buying a stock mainly for monthly income, I mainly want three things from the business behind it: dependable cash flow, reasonable support for the payout, and some room to grow.
And SmartCentres Real Estate Investment Trust (TSX: SRU.UN) offers all three today. Its over 6% annualized yield provides attractive monthly income, while high occupancy and healthy leasing activity help keep rental cash flowing through the portfolio. In recent quarters, its adjusted funds from operations (AFFO) payout ratio has also improved, which is an encouraging sign for investors relying on those dividends.
In this article, I’ll break down what supports SmartCentres REIT’s strong monthly distribution and why its growth plans make this monthly dividend stock attractive for long-term income investors.
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SmartCentres stock
In short, SmartCentres is a Vaughan-based real estate investment trust (REIT) that owns, leases, and manages shopping centres, office properties, rental residences, industrial facilities, condos, townhomes, and self-storage properties across Canada.
After climbing 9% so far in 2026, SmartCentres stock recently closed at $28.15 per share, giving the REIT a market cap of roughly $4 billion. Income investors get a 6.6% annualized dividend yield, with distributions arriving every month.
Strong leasing supports its dividends
SmartCentres ended the second quarter of 2026 with an in-place and committed occupancy rate of 98.1%, up 0.5% from the previous quarter. The REIT leased about 247,000 square feet of vacant space during the quarter, while extending 86% of existing leases maturing in 2026.
More importantly, its rental rates moved higher as SmartCentres reported rent growth of 12% excluding anchor tenants and 6.6% including anchors. Its same properties net operating income (NOI) also improved by 2.6% year-over-year (YoY), or 4.4% excluding anchors, helped by lease-up activity at higher rents.
Overall, its NOI came in at $139.9 million, down 1% YoY. The decline mainly reflected fewer townhome closings as the final unit in the Vaughan NW project closed during the quarter. Higher net rental income from lease-up and renewals across the commercial portfolio partly offset that weakness.
Growth beyond the monthly payout
The 6.6% yield may grab your attention first, but SmartCentres is also working on projects that could expand its property base over time. The REIT continues construction on a 200,000-square-foot Canadian Tire flagship store in Toronto, with delivery expected in the fourth quarter of 2026. It also acquired a 17-acre site in Winnipeg for about $10.1 million, where a new Walmart is expected to anchor the retail development under a 20-year lease.
Meanwhile, construction continues on its ArtWalk condo project in Vaughan, where roughly 93% of the 340 units were pre-sold. SmartCentres has also started construction on a 65-unit rental building in the same area.
Its self-storage business is also expanding. In the latest quarter, SmartCentres partially opened two new facilities in Quebec, while additional projects are under construction in British Columbia and Alberta.
Overall, SmartCentres’ solid dividend yield, monthly payouts, high occupancy, strong leasing momentum, and active development pipeline make this an appealing monthly dividend stock to consider for long-term passive income.
