SRU
SmartCentres REIT (TSX:SRU.UN) checks a lot of these boxes because it owns and operates Canadian real estate that people use for everyday shopping. It focuses on value-oriented shopping centers and other well-located locations across the country, and manages significant land around them. That land is important because it lets the Real Estate Investment Trust (REIT) add new revenue streams over time instead of just relying on rent increases.
This REIT also looks more modern than its great reputation suggests. Retail leasing is still the driving force behind the core, but SmartCentres has emphasized mixed-use growth where meaningful. It is adding density through residential projects in select locations and pushing self-storage as a needs-based business. That mix can help balance the cycles, as buyers, tenants and storage customers rarely all withdraw at the same time.
Recent performance has been steady rather than spectacular, which is consistent with a monthly income. Units moved as rates pulled the entire REIT sector up and down. Over the past year, SRU.UN has been trading between around $23.18 and $27.21, and recently it was around $26. You buy it for the check, not the fireworks, and you hope for a nicer background later.
Numbers don’t lie
If you examine the last quarter, the business picture looks healthy. In the update for the third quarter of 2025, SmartCentres reported an present and committed occupancy rate of 98.6%. Dividend stocks also pointed to leasing momentum, lease renewal growth and net operating income growth from owned properties. A REIT lives or dies on rented space and rent checks, not on one-time accounting fluctuations.
Earnings headlines can confuse REIT investors, so focus on cash flow measurements. SmartCentres reported funds from operations (FFO) with unit adjustments of $0.56 for the quarter, compared to $0.53 a year earlier. Even as base FFO per unit moved due to mark-to-market items. It also reported a payout ratio to adjusted FFO of 95.1% for the quarter. That’s high, so you’ll want continued leasing strength and sensible refinancing if rates remain high. SmartCentres also raised new-maturity notes after the end of the quarter and plans to repay $350 million in maturity and reduce variable-rate debt. This can reduce the volatility of interest costs.
Valuation remains difficult, because REIT prices respond to interest rate reports. At recent levels, SmartCentres offered a rolling annual distribution rate of $1.85 per unit, which equates to a yield of about 7% today. Meanwhile, the prospects look practical, not flashy. SmartCentres continues to advance its development pipeline, including the opening of self-storage that management expects in 2026, and continues to work on major projects that could generate increased revenues over time. It also stated that the benefit for December 2025 was $0.15417 per unit, and continues to pay monthly, making TFSA income planning simple.
In short
All told, SRU.UN can earn a spot as an ideal monthly payer of the TFSA. It converts rent into cash every month, it has a very high occupancy rate and it has a land bank and pipeline that can support longer-term growth. Right now, this is what even $7,000 can make from dividends alone.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | ANNUAL TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| SRU.UN | $26.01 | 269 | $1.85 | $497.65 | Monthly | $6,996.69 |
The risks still matter: higher financing costs can put pressure on coverage, a recession can slow rentals, and a high payout ratio leaves less room for error. But if you want tax-free income that shows up regularly, this REIT offers an easy way to make your TFSA feel useful now.
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