Canadians looking for a perfect Tax-Free Savings Account (TFSA) stock for monthly paycheques could consider SmartCentres REIT (TSX: SRU.UN). The real estate investment trust (REIT) is known for durable payouts across market conditions and offers a high 7% yield.
SmartCentres REIT’s diversified portfolio of retail and mixed-use properties adds resilience to its payouts. Beyond core retail real estate, the trust has exposure to residential, self-storage, office, and industrial properties.
Its strategically positioned retail assets benefit from strong customer traffic, which supports tenant demand, occupancy, lease renewals, and rental income. These factors drive its net operating income (NOI) and adjusted funds from operations (AFFO), supporting its monthly payouts.
The REIT’s tenant base further strengthens its operations. Its high-quality tenant base includes prominent national retailers. These tenants drive higher rental collections, helping the REIT navigate changing economic conditions. High occupancy and rising rental income position SmartCentres REIT to sustain its payouts in the years ahead.
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Into SmartCentres REIT’s recent financial performance
SmartCentres REIT continues to deliver steady operating performance, supported by its well-diversified real estate portfolio and strong tenant base. As of June 30, 2026, the trust reported an in-place and committed occupancy rate of 98.1%, up 0.5% from the previous quarter.
Ongoing leasing activity and higher rental rates supported NOI growth. In Q2, same-property NOI increased 2.6% versus the corresponding period in 2025. Excluding anchor tenants, growth was higher at 4.4%, highlighting strong leasing performance across the portfolio.
Increasing customer traffic is another positive factor for SmartCentres REIT. Higher traffic can help retailers generate more sales, supporting rent increases when leases are renewed. Over time, this contributes to further growth in same-property NOI and strengthens the trust’s properties’ performance.
SmartCentres REIT’s leasing results also reflect this strength, with 86% of leases maturing in 2026 already completed by the end of the second quarter. These renewals achieved an overall rental increase of 6.6% and 12% when anchor tenants were excluded. In addition, the REIT maintained a strong cash collection rate of 99% during the quarter.
Leasing activity remained encouraging, with 247,478 square feet of vacant space leased during the quarter. SmartCentres REIT is also seeing growing demand for newly developed retail space, creating opportunities to expand its presence across Canada. Overall, strong occupancy, higher rental rates, and consistent cash collection continue to support the REIT’s ability to distribute monthly cash.
TFSA investors can make $154 per month
SmartCentres REIT is an attractive option for TFSA investors seeking monthly income. Strong demand for retail space, high occupancy levels, and rental increases support the REIT’s ability to maintain its distributions.
Its established retail portfolio provides a foundation for stable performance, while its mixed-use development projects offer additional avenues for expansion and portfolio diversification.
SmartCentres REIT is also focused on improving the productivity of its existing properties. By attracting reputable tenants, refining its tenant mix, and expanding its retail offerings, the REIT could enhance property performance and strengthen operating cash flow. Its substantial undeveloped land holdings also provide opportunities for future projects and long-term value creation.
Taken together, its solid retail portfolio, high occupancy rates, rental growth, development opportunities, and fixed-rate debt structure position it well to reward investors with steady payouts.
SmartCentres REIT currently offers a monthly distribution of $0.15 per unit. At this rate, a TFSA investor holding 1,000 units would receive $154 per month.
