Have you ever wanted to invest in real estate? It’s not easy, and the barriers to entry can be high, especially if it is your first property.
Real estate has long been a vehicle where the wealthy park their money.
Not only does land and the properties on them continue to appreciate as time goes on, but it is an asset with real-life utility.
Unfortunately, unless you have a large sum of initial capital saved up for a down payment, buying real estate can be a difficult task.
Luckily, there is a way to invest in real estate through the stock market itself.
The REIT or Real Estate Investment Trust is a commonly overlooked investment asset that can be utilized to gain exposure to real estate.
If you love steady performance and a stable, generous dividend, there are plenty of Canadian REIT stocks investors can add to their portfolios.
Read on to learn about the best REIT stocks in Canada in 2025.
Best REIT Stocks in Canada
Here is a list of top Canadian REIT stocks to add to your portfolio.
1. H&R REIT (TSX:HR.UN)
H&R is one of the largest REITs in Canada in terms of market capitalization and assets under management.
Until the start of this year, H&R was a well-diversified REIT that had holdings in residential and commercial based in Toronto.
If you’re looking at the stock chart, you might notice a significant and sudden decline in the REIT’s price.
In December 2021, shareholders voted to split off 70% of the company’s portfolio, which includes commercial real estate like malls and other retail buildings.
The REIT now focuses mostly on residential real estate and has maintained a 4.29% dividend yield that is distributed every month.
In all, H&R currently has 406 total properties in its portfolio, valued at over $10 billion CAD.
2. Allied Properties REIT (TSX:AP.UN)
Allied Properties (TSX:AP.UN) is an office space REIT focusing on urban workspaces in major Canadian cities like Toronto and Vancouver.
This REIT owns 202 different properties at a total value of $9.4 billion as of the end of 2022. This portfolio has over 15 million square meters of real estate across the country.
Its office spaces are rented by major corporations like Morgan Stanley, Ubisoft, Shopify, and the National Bank of Canada.
Allied Properties is also getting into the data center space and owns three locations in Toronto valued at nearly $1.3 million altogether.
The fund pays out a current annualized dividend yield of 6.24% that is paid out monthly to shareholders.
3. Dream Industrial REIT (TSX:DIR.UN)
This Toronto-based REIT was founded back in 2012 and has been one of the steadiest performers over that time.
As of January 2023, Dream Industrial REIT owned 258 industrial assets that accounted for over 46.5 million square feet.
This portfolio is valued at over $6.5 billion and has an impressive 99.0% committed occupancy. This is essential because it means that nearly all of its properties are collecting rent.
Dream Industrial REIT operates warehouses and fulfillment centers, as well as other industrial buildings.
With a rock-solid balance sheet, minimal debt, and a keen eye for acquisitions, Dream Industrial is a solid addition to your portfolio.
The REIT also has a current 5.18% annualized dividend yield and pays out its distributions every month.
4. Riocan REIT (TSX:REI.UN)
Riocan is not only one of the most well-known Canadian REITs, but it is also one of the largest by market cap and asset value.
As of January 2023, Riocan had an enterprise value north of $13 billion and currently has a market cap of $6.75 billion. Riocan owns a nice variety of different properties, with a focus on retail buildings.
The company owns 198 different properties in its portfolio and has an impressive 97.3% committed occupancy rate, with 93% of these properties in Canada’s six largest markets.
Riocan pays out a monthly dividend with a current 4.55% annualized yield.
5. Slate Grocery REIT (TSX:SOT.UN)
As its name suggests, Slate Grocery REIT has a portfolio that is 93% anchored to grocery store chains. Although this stock trades on the TSX and is a Canadian company, this REIT only holds properties in the United States.
The fund holds 121 properties in America worth more than $2.4 billion and covers over 15.6 million square feet of real estate.
This ETF rents out land to some of the biggest names in the American grocery industry, including Walmart, Costco Wholesale, Kroger, Albertsons, and Sam’s Club.
Slate Grocery REIT Pays out a 7.26% annualized dividend yield and pays out its distribution monthly to shareholders.
6. Canadian Apartment Properties (TSX:CAR.UN)
Are you starting to see a pattern here? Residential REITs offer the stability of owning income rental property without the hassle of being a landlord.
Canadian Apartment Properties is another popular REIT with one of the largest market caps of any Canadian REIT at $8.0 billion.
The company has over 67,000 rental properties in its portfolio across Canada and Europe, with an impressive 98.1% residential occupancy rate in Canada.
Monthly rent cheques are great for REITs because it means shareholders usually get monthly distributions.
Canadian Apartment Properties is no different, with a monthly payout and annual yield of 3.07%.
7. Boardwalk REIT (TSX.BEI.UN)
Boardwalk REIT has a long history of performing well for Canadian investors, aside from a sharp decline a few years back after its Alberta portfolio got hit hard.
Since then, Boardwalk REIT has more than recovered and has 33,722 properties in its portfolio as of January 2023.
Boardwalk management is also putting its money where its mouth is, with 19.21% of shares owned by insiders, which is a fairly high percentage. It also has a nearly 40% of its 45.7 million outstanding shares held by institutional investors.
Boardwalk’s distribution isn’t as high as other REITs, with a monthly payout yielding only 2.04%.
8. Automotive Properties REIT (TSX: APR.UN)
Automotive Properties REIT is a fund that owns real estate properties in the automotive industry. These properties include car dealerships and other repair centers.
The fund rents out property to some of the world’s largest automakers, including Audi, BMW, Porsche, Tesla, Ford, GMC, Volkswagen, Honda, and Toyota.
It owns 76 income-producing properties that account for 2.8 million square feet of real estate worth over $1.09 billion.
APR.UN pays out a monthly cash dividend with an annualized yield of 6.59% and an AFFO payout ratio of 88.2%.
9. Summit Industrial Income REIT (TSX:SMU.UN)
A relatively unknown Canadian REIT, Summit Industrial owns 160 different warehouses and industrial centers around Canada.
One of the best parts about Summit is that it has high-end customers like Home Depot and Coca-Cola occupying its property.
It also provides some exposure to data centers, one of the only Canadian REITs to provide this.
Summit pays a decent but not spectacular 1.89% yield and pays monthly distributions.
10. Smartcentres REIT (TSX:SRU.UN)
Smartcentres is a massive industrial REIT that owns over 185 properties in Canada valued at $11.7 billion. A majority of its properties are retail-oriented, with shopping centers and malls being critical to its portfolio.
Smartcentres has a 97.6% occupancy rate across its properties and rents to some of the biggest companies in the world, including the likes of Costco, Home Depot, Lowe’s, Dollar Tree, and H&M.
Smartcentres has one of the better distributions as well, with a monthly payout at a yield of 6.63%.
What is a Real Estate Investment Trust (REIT)?
A REIT is a company that owns and operates real estate and generates income through rent payments from its occupants. This can include residential properties, retail properties, or even industrial properties.
Canadian REITs must have the property physically located within Canada and abide by special regulations that allow them to operate as a REIT.
To qualify as a REIT, the trust must pay at least 90% of its taxable income as either a dividend or distribution to shareholders.
In exchange for this generous payout, REITs are not required to pay any corporate taxes and also get to own the property they collect rent on.
For shareholders, in exchange for owning units of the REIT, a healthy dividend or distribution is paid quarterly or even monthly, depending on the REIT.
You can own these in any registered or non-registered account, although holding REITs in a TFSA or RRSP is a little more tax-friendly when it comes to collecting frequent dividends.
How To Invest in a Canadian REIT
Investing in the top REIT stocks in Canada is a piece of cake. These assets trade just like regular stocks or ETFs, so all you need to do is search for the ticker symbol and hit the buy button!
REIT stocks with high dividends are excellent stabilizers in your portfolio and can add a sense of stability during volatile times.
Questrade
Questrade offers its users a flexible investing fees package, which includes being able to buy a variety of stocks and ETFs for zero commission.
Unfortunately for Questrade users, REITs do not fall under the ETF category, meaning trading commissions are charged on transactions.
New traders can get a $50 bonus after depositing $1,000 into their account when registering here.
Questrade
Trade stocks, ETFs, options, FX, bonds, CFDs, mutual funds, etc.
Get a $50 bonus with $250 funding (use referral code: SAVVY50)
Commission-free trading for stocks/ETFs
No quarterly inactivity fees
Access to advanced tools and trading data
Top platform for advanced traders
Transfer fees waived
Wealthsimple
Wealthsimple Trade is a popular trading platform amongst millennials and other younger generations.
It is based entirely online and offers one of the only zero-commission trading platforms in the country.
For new traders, a cash bonus is available via our exclusive promo link after trading your first $150.
Wealthsimple Trade
Trade stocks and ETFs commission-free
Get a $25 cash bonus with $150+ deposit
Excellent trading platform for beginners
Access to various products and accounts
Transfer fees waived up to $150
Qtrade
Qtrade is a popular Canadian trading platform that offers all of the above-mentioned REIT assets for you to add to your portfolio.
Simply enter the ticker symbol, choose the number of units, and sit back and watch the distribution payments pile up every month.
Qtrade
Get a bonus cashback
Trade stocks, ETFs, options, bonds, etc.
Excellent platform for newbies and seasoned investors
Competitive trading fees
Excellent customer service
Are REIT Stocks a Good Investment?
Absolutely! REITs are underappreciated in the investing world, and I believe they have a place in any diversified portfolio.
Canadian investors will love Canadian REIT stocks due to their stable prices, steady growth, and generous monthly or quarterly distributions.
These are just ten of dozens of the top dividend REITs in Canada that can help form the bedrock of your long-term portfolio.
Stock Advisor Canada
Unlimited access to expert stock recommendations
Almost doubled the S&P/TSX Index over last 9 years
New stock picks every month
50,000+ members
$1.90 weekly (66% discount)
Conclusion
As an investor, it’s always difficult to build a portfolio with both stocks and real estate property. Now, you know exactly how to combine the best of both worlds into a single investment.
So far, 2023 has been a bumpy ride for investors as market volatility has wreaked havoc on our portfolios.
Adding assets like REITs to your portfolio can help keep your head above water and provide a much-needed cash flow that is so valuable during economic uncertainty.
By investing in both residential REIT stocks and commercial REIT stocks, investors can ensure that their portfolios are further diversified and safe from downturns in any one specific sector or industry.
Best REIT Stocks in Canada FAQs
The two assets are very different in terms of behaviour and long-term goals. Stocks hold the potential for growth, while REITs won’t show as much short-term growth but can provide excellent cash flow to build up your portfolio.
It will come down to personal preference here. One thing to note is that REIT ETFs trade for free on some trading platforms like Questrade or Wealthsimple, so it might be worth taking a look if you use one of these platforms.
There aren’t many to avoid per se, but in times of economic downturn, avoiding REITs that focus on retail spaces like shopping malls or entertainment outlets like movie theatres may be a good choice. These REITs will be the ones most likely to struggle to collect rent and have struggling tenants when fewer consumers are spending money.
Related:
