It turns your TFSA into a little income machine, paying you month after month while you sleep. And if the underlying business is stable and built for the long term, these tax-free distributions can grow your wealth much faster than regular savings ever could. So let’s take a look at one to think about TSX Today.
CRT.UN
CT REIT (TSX:CRT.UN) is one of Canada’s most trusted retail-anchored real estate investment trusts (REITs), built around long-term leases with Canadian band and the associated banners. The REIT owns hundreds of properties across the country, primarily essential retail locations that often perform well even during economic slowdowns.
Because its tenant base is stable, national and well established, CRT.UN benefits from predictable rental payments and low vacancy risk, which translates into stable cash flow for investors. It also benefits from strong real estate locations in suburban and urban markets, where real estate values tend to increase over time.
The REIT is structured in a resilient manner, with long lease terms, often 10 to 20 years. This provides built-in stability and inflation protection through contractual rental escalators. The business model is deliberately conservative, with slow, steady acquisitions and development projects combined with disciplined balance sheet management. This mix makes CRT.UN attractive to investors who value long-term income consistency and reliability over rapid expansion. The REIT’s relationship with Canadian Tire, one of the country’s most trusted retail brands, further strengthens its credibility and lowers its risk profile.
In income
In its recent third quarter (Q3) earnings results, CRT.UN reported continued net operating income growth of $119.9 million, up from $113.6 million, driven by contractual rent increases and strong real estate performance. The REIT maintained a high occupancy rate of 99.4%, reflecting the essential nature of its retail tenants. Cash flow remained healthy, supporting its generous payout and leaving room for further debt reduction.
Management highlighted rising property valuations across the portfolio and reiterated its disciplined approach to capital allocation, prioritizing stability over aggressive expansion. These results underscore why CRT.UN remains one of Canada’s most reliable real estate income vehicles.
The REIT also demonstrated strong financial flexibility, with manageable debt levels and steady funds-from-operations (FFO) growth to $80.5 million. These are important metrics for income investors evaluating the sustainability of payouts. The steady increases in FFO per unit year-over-year reflect the sustainability of rental income, and management emphasized that benefits remain well covered. Even in more volatile economic periods, CRT.UN’s profit profile remains stable thanks to its long-term leases and essential retail footprint.
Silly takeaway
CRT.UN is a near-ideal TFSA choice for anyone looking for a high dividend yield. It offers reliable, tax-free income, backed by some of the strongest tenant agreements in the country. Thanks to predictable rent escalators, long-term contracts and a stable tenant base, benefits are not only sustainable, but also positioned to grow slowly over time. And right now, this is what $7,000 could make annually.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | ANNUAL TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| CRT.UN | $15.88 | 440 | $0.95 | $418.00 | Monthly | $6,987.20 |
In a TFSA, where every dollar of that income remains tax-protected, the compounding effect can be huge, especially for investors who have held the dollar for decades. You essentially get a hassle-free income engine built on high-quality Canadian real estate, making CRT.UN an excellent choice for long-term passive income.
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