Invest in CT Real Estate Trust for Monthly Income at 5.8%

Investors seeking regular income streams may find the **CT Real Estate Investment Trust (TSX:CRT.UN)** an appealing option. This real estate investment trust (REIT) offers a **5.8% dividend yield** and distinguishes itself by providing monthly payouts, a rarity among Canadian dividend-payers. While many Canadian firms distribute dividends quarterly, CT REIT’s structure allows for 12 reinvestment opportunities each year, enhancing capital compounding.

With a recent unit price of **$16.77**, investors holding **1,245 shares**, worth approximately **$20,878.65**, can expect a monthly cash flow of **$100.22**. The REIT’s **58% payout ratio** is notably low for similar entities in Canada, indicating a solid potential for dividend growth and a measure of safety for investors.

Unique Business Structure

CT REIT, valued at **$3.9 billion**, operates under a distinctive business model, primarily supported by its majority stakeholder, **Canadian Tire Corporation**. This relationship provides a layer of stability uncommon in Canada’s commercial real estate market. With **approximately 68%** ownership, Canadian Tire acts not only as a tenant but also as a landlord, ensuring well-maintained properties and virtually guaranteed lease renewals.

Most leases in CT REIT’s portfolio include annual rent escalations of **1.5%**, contributing to predictable growth. This strategic alignment with Canadian Tire significantly mitigates tenant risks, allowing the REIT to maintain a consistent distribution history, including **13 consecutive years** of dividend increases.

Property Portfolio and Financial Performance

As of **September 30, 2025**, CT REIT manages **378 retail properties** concentrated in prime retail and transit-oriented locales. The weighted average lease term (WALT) stands at **7.3 years**, among the longest in the sector. Retail properties dominate the portfolio, comprising **84.9%**, followed by industrial at **14.5%** and mixed-use at **0.6%**.

CT REIT is also actively involved in developing Canadian Tire stores and Canadian Tire-anchored projects, with **14 property intensifications** currently underway. The REIT has the capacity to acquire properties from Canadian Tire and lease them back on a long-term basis. As of the end of the third quarter of 2025, the occupancy rate was an impressive **99.4%**. Other notable tenants include **Loblaw**, **Burger King**, **Tim Hortons**, and **Popeyes** from Restaurant Brands International.

Financial results for the first three quarters of 2025 indicate strong performance, with property revenue, net operating income (NOI), and net income rising by **4.2%**, **4.5%**, and **9%** year-over-year, reaching **$451.3 million**, **$357.5 million**, and **$325.8 million**, respectively. Canadian Tire contributes a substantial **90.9%** of the annualized base minimum rent.

**Kevin Salsberg**, President and CEO, emphasized the REIT’s blend of growth and stability, affirming that CT REIT will continue to leverage its relationship with Canadian Tire.

CT REIT stands out in the investment landscape as a reliable source of passive income, marrying safety with monthly payouts. This unique partnership can transform investment capital into a sustainable and growing income stream, appealing to income-focused investors.

Investors interested in CT Real Estate Investment Trust should consider its robust structure and performance metrics. While it presents an attractive opportunity, it is essential to explore other options in the market. As highlighted by The Motley Fool Canada, CT REIT was not included among their top ten TSX stock recommendations for 2026, which may suggest investors should weigh their choices carefully.

For those contemplating a $1,000 investment in CT REIT, it’s advisable to stay informed about broader market trends and other potential opportunities that could yield significant returns.