Your TFSA can earn $333 in monthly, tax-free income

A tax-free savings account (TFSA) is the best way to achieve a monthly income of up to €333, so that the money ends up in your account without a tax burden. This is important for monthly payers, because you feel the benefit immediately and can reinvest more quickly. The TFSA also keeps it simple. No foreign tax credits to keep track of, no tax stubs to change your mood in April, and no worry that withdrawals will affect government benefits later. The real trick is choosing a monthly payer with a cash flow that can actually support the check.

April

Automotive Properties REIT (TSX:APR.UN) owns real estate that is leased to automotive dealers and related users. That structure often leads to long leases and predictable rent escalators, which is exactly what monthly income investors want. The theme is boring in the best way. Cars still need maintenance, dealers still need physical locations, and tenants usually don’t move on a whim.

Over the past year, the story has been based on steady growth and not reinvention. The Real Estate Investment Trust (REIT) has kept its monthly distribution at $0.81 annually. That consistency matters because many income investors purchase this name specifically to build a “monthly payroll stream” in a TFSA. It also indicates that management believes the payout fits the cash flow profile.

The company also remained active on the portfolio side. Management has been adding housing and leaning on contractual rent increases to boost revenues, while also making cuts where it makes sense. In Q3 2025, it posted growth in rental income from properties acquired after Q3 2024 and rent escalations, partially offset by lower rents following the sale of the Kennedy Lands in October 2024. That kind of capital recycling can be healthy, but it’s also a reminder that this REIT is growing on both deals and lease clauses, so you’ll want to keep an eye on execution.

In income

In the third quarter of 2025, Automotive Properties reported rental income of $25.4 million, up 7.9% year over year, and total cash net operating income (NOI) of $21 million, up 6.5%. Funds from operations increased to $12.9 million, or $0.255 per unit, and AFFO increased to $12.7 million, or $0.252 per unit (diluted). These are the figures that keep the monthly distribution fair.

Distribution coverage looked reasonable in that quarter. The REIT paid regular cash distributions of $0.204 per unit in the third quarter of 2025, representing an AFFO payout ratio of approximately 81%. That is not ultra-conservative, but not reckless either, especially for a real estate fund that wants to pay monthly. If you want the income to feel safe, you want the payout ratio to remain stable or decrease over time, not increase.

When it comes to valuation, this can feel like a TFSA-friendly instrument. With a benefit of €0.0685 per month you will receive €0.822 per year. The future prospects depend on the same two levers that most REIT investors need to pay attention to: steady rental growth and steady financing. In the meantime, here’s how much investors should invest if they want $333 per month.

COMPANY	RECENT PRICE	NUMBER OF SHARES	ANNUAL DIVIDEND	ANNUAL TOTAL PAYOUT	FREQUENCY	TOTAL INVESTMENT
APR UN	$11.59	4,934	$0.81	$3,996.54	Monthly	$57,185.06

In short

Here’s the clean takeaway. APR.UN can be a solid monthly income candidate for the TFSA because its distribution is stable; the cash flow lines in the third quarter of 2025 were moving in the right direction, and the payout ratio in that quarter left some breathing room. But it’s not a guaranteed smooth ride. Leverage is around 40%, debt maturities still matter, and unit prices can fluctuate even if rent controls remain calm. If you want tax-free monthly cash and can handle some real estate volatility, this could be the job.