2 Canadian REITs That Could Double Your Passive Income

CT REIT and RioCan offer dependable monthly REIT income: Canadian Tire‑backed stability versus RioCan’s urban, mixed‑use growth.

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Key Points

  • CT REIT provides highly predictable rent from long Canadian Tire leases, with ~99% occupancy and a monthly yield near 5.8%.
  • RioCan offers urban, mixed‑use growth with residential development upside, strong FFO and occupancy around 97%, yielding roughly 6.2% monthly.
  • Choose CT for safety and steady income, RioCan for higher yield and growth — both suit income investors but carry different risks.

Real estate investment trusts (REIT) are some of the best ways to create passive income. That income can come in monthly in many cases, providing consistent dividends that are like creating an entirely new paycheque. Yet what we want as investors is the best bang for our buck. That’s why today, we’re going to look at CT REIT (TSX:CRT.UN) and RioCan REIT (TSX:REI.UN), two of the most dependable, high-yielding dividend REITs out there.

CT

CT REIT is one of the more dependable yet quietly powerful income plays on the TSX. Backed by the financial strength and long-term tenancy of Canadian Tire, this REIT provides a rare blend of safety and growth that few income-focused investments can match. CT REIT’s business model is about as solid as they come. Roughly 90% of its revenue comes from long-term leases with Canadian Tire, giving it predictable rental income and minimal risk of tenant turnover. These leases are typically for 10 to 20 years, often with built-in rent escalations that automatically boost revenue year after year.

The REIT currently offers a dividend yield around 5.8%, paid monthly. But what makes it compelling isn’t just the yield, it’s the growth behind it. CT REIT has increased its distribution every year since it went public in 2013, supported by a steady stream of property acquisitions and development projects. Even better? Because of its close relationship with Canadian Tire, its occupancy rate consistently sits above 99%, and its rental collection record is nearly flawless. So that dividend is solid, growing, and dependable.

CT REIT’s combination of a reliable tenant base, inflation-linked rent growth, and disciplined management makes it a textbook example of how to build lasting, passive income in Canada. It’s not flashy, but that’s the point. It pays you month after month, quietly and consistently, while your income keeps rising. For investors who want to double their passive income without taking on unnecessary risk, CT REIT offers exactly the kind of boring, beautiful consistency that makes long-term wealth-building possible.

REI

REI is one of the most reliable and established income-producing investments in Canada, and for investors focused on long-term passive income, it offers both stability and growth potential that could double your cash flow over time. Its business is anchored by necessity-based retail tenants like grocery stores, pharmacies, and essential service providers, which have proven resilient even through economic downturns. In recent years, the trust has strategically reduced its exposure to weaker retail categories while expanding into mixed-use residential developments under its “RioCan Living” brand.

Today, RioCan’s yield sits around 6.2%, paid monthly. But what makes it exciting for long-term investors is its potential to grow that payout as earnings climb. The trust’s funds from operations (FFO) are steadily increasing, driven by new residential completions, rent escalations, and strong occupancy rates hovering near 97%. Management is also committed to disciplined development spending, meaning every new project adds incremental, recurring income without over-leveraging the balance sheet.

Another reason RioCan stands out is its financial resilience. The trust maintains one of the healthiest balance sheets among Canadian REITs, with a conservative debt-to-assets ratio and a focus on liquidity. Its asset base is concentrated in high-demand urban markets like Toronto, Ottawa, and Vancouver, where property values and rents have long-term upward trends. These are markets where demand for mixed-use and residential properties remains strong, even when the broader economy slows. That gives RioCan durable pricing power and the ability to pass on inflation through rent increases.

Bottom line

If you’re an investor looking to double up your passive income, these are two of the most solid, cheap, high-yielding REITs to provide it. In fact, here is what you could earn each year from a $5,000 investment in both stocks.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDTOTAL PAYOUTFREQUENCYTOTAL INVESTMENT
CRT.UN$16.16309$0.95$293.55Monthly$4,996.44
REI.UN$18.69267$1.16$309.72Monthly$4,993.23

Frankly, it can be rough out there trying to create extra income at a time when you need it most. That’s why REITs can certainly help. And of them all, these two look like some of the best options on the TSX today.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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