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What if you could earn reliable monthly income from real estate without the stress of managing tenants and properties? That’s exactly what REITs (real estate investment trusts) listed on the Toronto Stock Exchange offer, and some of them are built to withstand even the roughest economic storms. While recessions can hit many industries hard, properties like apartments, warehouses, and shopping centres tend to remain in high demand even during economic downturns. That’s why the right Canadian REITs can keep delivering steady cash flow, no matter what’s happening in the market in the short term.
In this article, let’s explore some of the best recession-resistant REITs in Canada that could provide both stability and dependable monthly dividends for your portfolio.
The first REIT for steady monthly income
Speaking of steady income, Chartwell Retirement Residences (TSX:CSH.UN) could be a strong name in the senior housing space. This Mississauga-based REIT mainly focuses on providing a variety of living and long-term care options for seniors across Canada. Given the country’s aging population, the demand for these services isn’t expected to slow down anytime soon.
Right now, Chartwell’s stock is trading at $16.23 per share with a market cap of $4.4 billion. For income-focused investors, it pays a monthly dividend with an annualized yield of 3.8%, making it a solid option for those seeking reliable payouts.
Chartwell has been seeing strong financial momentum in recent quarters, which has helped its stock surge 34% over the last year. In the September 2024 quarter, the REIT’s resident revenue surged by 20% YoY (year over year) to $208 million, and funds from operations climbed by 43.2% YoY. Similarly, its same-property net operating income rose 17.1% from a year ago with the help of higher occupancy and improved rental rates.
The company is making smart moves with strategic acquisitions, as it recently added high-quality properties while shedding non-core assets to optimize its portfolio. As senior housing is an essential service, its demand remains strong even in uncertain economic times. These strong fundamentals make Chartwell a great recession-resistant REIT to hold for the long term.
Another recession-resistant Canadian REIT to consider
If you’re looking for another solid REIT that can deliver steady income even in uncertain times, Primaris Real Estate Investment Trust (TSX: PMZ.UN) is worth a closer look. Primaris is an enclosed shopping centre-focused REIT managing a large portfolio of retail properties across the country.
Right now, its stock is trading at $14.59 per share, giving it a market cap of $1.5 billion. What makes it appealing for income-focused investors is its monthly dividend payments, which currently offer an impressive 5.9% annualized yield, making it even more attractive for those who love reliable income.
Primaris has been steadily growing, with its total rental revenue hitting $119.5 million in the third quarter of 2024. During the quarter, the REIT’s same-property cash net operating income rose 4.6% YoY, while in-place occupancy climbed to a solid 93.4%, showing that demand for its retail spaces remains strong. The company also strengthened its balance sheet last quarter by raising $500 million in debentures, ensuring it has ample liquidity to support future acquisitions, brightening its long-term growth outlook.