The Canadian Dividend Aristocrats REITs

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Dividend Earner

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Did you ever think a REIT could be included in the Canadian Dividend Aristocrats list? Considering we identify REITs as an income investment, we don’t usually expect dividend growth. However, there are currently 7 REITs in the Canadian Dividend Aristocrats list.

For a comprehensive list you can rely on for choosing your next REIT, use the Dividend Snapshot REIT Screener.

Canadian Dividend Aristocrat Rules

  • The company’s security is a common stock or income trust listed on the Toronto Stock Exchange and a constituent of the S&P Canada BMI.
  • The security has increased ordinary cash dividends every year for five years, but can maintain the same dividend for a maximum of two consecutive years within that five year period.
  • The float-adjusted market capitalization of the security, at the time of the review, must be at least C$ 300 million.
  • For index additions, the company must have increased dividend in the first year of the prior five years of review for dividend growth. This rule does not apply for current index constituents.

Please note that the official Canadian Dividend Aristocrats list is updated monthly

Canadian Dividend Aristocrat REITs

The list is sorted by market capitalization from largest to smallest at the time of writing. While they grow their dividends, don’t expect double-digit growth. It’s also important that you understand the difference between REIT distribution and dividend as it has potentially different tax implications.

Do note that from a market capitalization angle, these companies fall in the mid-cap, and some in the small-cap group. The lower you go, the more risks technically as it doesn’t have an economy of scale to operate under.

When you look at my portfolio, it is comprised of 95% of large-cap and mega-cap stocks with forever businesses.

My Favorite REIT Aristocrats

Granite REIT

Granite REIT engages in the acquisition, development, and management of industrial properties in North America and Europe. Its portfolio consists of various manufacturing, corporate office, warehouse and logistics, and product engineering facilities.

Logistics and distribution warehouses and multipurpose buildings constitute the majority of its assets. Granite REIT is a spin-off of Magna International which still continues to be its major tenant.

Magna accounts for ~60% of Granite’s total revenues. Granite REIT has a diversified yet balanced geographical presence in Canada (26% of revenue), U.S. (31%), Austria (27%), and Europe (15%). It owns 85 investment properties with 33 million square feet of leasable area.

Key Investment Data

  • Ticker: tse:GRT.un
  • Sector: Real Estate
  • Industry: REIT - Industrial
  • Market Cap: 5.11B
  • Market Cap Group: Mid Cap
  • P/E: 0.00
  • Dividend Yield: 4.00%

Canadian Apartment Properties REIT

Canadian Apartment Properties or CAPREIT is a growth-oriented investment trust. The REIT invests in residential properties, including apartment buildings, townhouses and land lease communities located in close proximity to major urban cities across Canada.

It is the largest Canadian REIT by market capitalization value. As Canada’s largest multi-family residential REIT, Canadian Apartment owns interests in more than 51,000 residential units, comprising 44,000+ residential suites and 32 manufactured home communities.

It also has land lease sites located near major urban areas across Canada and The Netherlands. Canadian Apartment has a good mix of properties across affordable, mid-tier and luxury sectors which offer diversification of income. CAPREIT is best known for its quality portfolio.

Key Investment Data

  • Ticker: tse:car.un
  • Sector: Real Estate
  • Industry: REIT - Residential
  • Market Cap: 8.11B
  • Market Cap Group: Mid Cap
  • P/E: 0.00
  • Dividend Yield: 2.99%

Allied Properties REIT

Allied owns 160 urban properties (132 rental properties, eight development properties, and 11 ancillary parking facilities) spanning across 11 million square feet in Canada. Its portfolio comprises of a balanced mix of new and historical buildings.

The firm focuses on urban intensification and has a presence in Canada’s major cities such as Toronto, Montreal, Calgary, Vancouver, Ottawa, Edmonton, and Kitchener. Allied’s segments can be divided into urban data centers (18% of 2018 NOI), western (12%), eastern (25%) and central (45%).

Office space accounts for a larger portion of its NOI at nearly 69%, followed by urban data centers (18%), retail (8%) and parking (5%). Allied also has a subsidiary, Allied Properties Management LP which provides property management and other fee-based services.

Key Investment Data

  • Ticker: tse:ap.un
  • Sector: Real Estate
  • Industry: REIT - Office
  • Market Cap: 2.89B
  • Market Cap Group: Mid Cap
  • P/E: 0.00
  • Dividend Yield: 7.96%

InterRent REIT

InterRent operates as owners and property managers of homes for more than 12,000 Canadian households and growing. They are a passionate group of individuals who work as a team and are encouraged to use their voices to have a positive impact in their communities. The demand for rental apartments is consistently strong, stemming from a variety of factors including improved youth employment and an aging Canadian population, and exceedingly high net international migration.

The company’s focus is to expand in the core markets of GTA, Montreal, the National Capital Region, and relating markets. Areas are selected based on their ability to meet the following parameters and contribute to the REIT’s growth-oriented strategy. Healthy economical regional centres & neighbourhoods; regions that have stable employment profiles derived from strong and sustainable industries and are expected to have continued population growth. 

The management of environmental, social, and governance (ESG) topics is truly woven in the fabric of their day to day. They are passionate about implementing sustainable projects and their objective is to pursue pilots to reduce their environmental impacts. These initiatives benefit their residents, provide development opportunities for their teams, and help to safeguard their environment through lower energy consumption, better water and waste management, and reduced GHG emissions.

Their social objective is to offer an unsurpassed resident experience. They believe that dealing with people is the heart of any business, and this is especially true in the multi-family sector since their business impacts someone’s home. To maintain the confidence of investors and properly oversee the activities of management, adopting and upholding high standards of governance practices are essential.

Key Investment Data

  • Ticker: tse:iip.un
  • Sector: Real Estate
  • Industry: REIT - Residential
  • Market Cap: 1.87B
  • Market Cap Group: Small Cap
  • P/E: 20.66
  • Dividend Yield: 2.74%

Research All Canadian REITs

There are over 40 REITs in Canada and 30 with a market capitalization over 1B covering 7 distinct industries. Get the details on the REITs you are interested in with the Dividend Snapshot REIT Screener and make an educated investment decision.