Printed on April sixteenth, 2026 by Nathan Parsh
Investing in actual property funding trusts, or REITs, could be a fruitful choice for traders in search of high-income yields. This is because of their obligation to distribute the vast majority of their earnings to shareholders within the type of dividends. Many income-focused traders, significantly retirees, discover REITs interesting however normally deal with the U.S.-based ones.
Exploring alternatives past the U.S. market could also be clever, as dependable dividend-paying REITs exist in different international locations. Canada, specifically, options a number of REITs that boast a long time of constant shareholder worth creation. Canadian Condo Properties Actual Property Funding Belief (CDPYF) is one such firm.
Canadian Condo Properties REIT stands out amongst different REITs as a result of it affords month-to-month dividend funds, whereas most REITs present dividends quarterly.
Whereas a couple of different REITs additionally supply month-to-month dividends, this distinguishing characteristic units Canadian Condo Properties REIT other than the pack. That is very true on this case, as the corporate has paid a month-to-month dividend constantly since 1998 and has by no means reduce it regardless of the hardships which have arisen since.
There are presently simply 118 month-to-month dividend shares.
You’ll be able to obtain our full Excel spreadsheet of all month-to-month dividend shares (together with metrics that matter, like dividend yield and payout ratio) by clicking on the hyperlink beneath:
Canadian Condo Properties REIT affords a dividend yield of 4.2% at present costs, which is notably increased than the broad market’s dividend yield, which stands at about 1.2% proper now.
The above-average dividend yield and Canadian Condo Properties month-to-month dividend funds make the REIT worthy of analysis for earnings traders. This text will talk about the funding prospects of Canadian Condo Properties (briefly, CAPREIT) intimately.
Enterprise Overview
CAPREIT is Canada’s largest actual property funding belief. The corporate owns roughly 45,905suites, together with townhomes and manufactured housing websites, in Canada.
Additional, the corporate, straight and not directly, owns a 66% fairness stake in European Residential Actual Property Funding Belief, one other publicly traded Canadian REIT. The corporate additionally owns roughly suites within the Netherlands via this funding. It was introduced on March 2nd, 2026, that CAPREIT would buy all of the items of European Residential Actual Property Funding Belief that it didn’t already personal.
Supply: Investor Presentation
The corporate’s Canadian portfolio enjoys exceptionally excessive occupancy, ending the fourth-quarter of 2025 with a 97.3%
occupancy fee. CAPREIT remaining suites are within the Netherlands. These had been 90.6% occupied to shut out the 12 months.
In 2025, the corporate strategically disposed of $1.2 billion CAD of properties in Canada and the Netherlands. These offers had been accomplished at costs at or above beforehand reported IFRS honest values on the time of negotiation. The proceeds from these tendencies are getting used to accumulate just lately constructed mid-market rental properties at costs which are meaningfully beneath alternative price, in addition to unit repurchases.
On February twelfth, CAPREIT reported outcomes for the fourth-quarter and full 12 months for the interval ending December thirty first, 2025. The corporate’s working income in CAD forex fell 12.0% year-over-year to $243.3 million through the quarter. That was linked to tendencies, which had been principally accomplished within the first half of 2025.
Adjusting for overseas forex translation, CAPREIT’s working income was decrease by 13.6% over the year-ago interval to $176.3 million within the quarter (based mostly on common CAD to USD alternate charges in This autumn 2024 and This autumn 2025). The corporate’s diluted FFO per unit improved 1.6% for the quarter to $0.632 CAD. Factoring in overseas forex translation, CAPREIT’s FFO per unit was down by 0.2% to $0.458 through the quarter.
We count on that CAPREIT will generate FFO per unit of $1.91 for 2026, which might be a 2.8% improve from final 12 months.
Development Prospects
Shifting ahead, we count on CAPREIT to drive progress via accretive acquisitions and natural lease progress, because it has finished prior to now.
Administration believes that buying newly constructed properties needs to be a good technique lately, as such properties ought to scale back the corporate’s future capital funding wants and, subsequently, its publicity to inflationary pressures.
Supply: Investor Presentation
Like all REITs, CAPREIT faucets into each debt and fairness markets to finance its future progress. As rates of interest are actually increased, one legitimate concern traders might have is the potential challenges to the corporate’s enlargement efforts on account of financing turning into notably costlier recently. Regardless of this, CAPREIT has established a formidable credit score profile over time, which permits it to entry financing at extremely aggressive charges.
CAPREIT’s improved its monetary place in 2024, lowering complete debt to gross guide worth to 38.4% (down from 41.6% in 2023). This was pushed by $2.5 billion in non-core asset gross sales, which helped decrease leverage and deal with high-quality properties. The corporate maintained a robust liquidity place of $688.2 million, together with $565.3 million in out there borrowing capability.
The belief completed 2025 with a complete debt to gross guide worth of 39.3%, up barely from the prior 12 months.
The corporate’s steadiness sheet stays strong, with a weighted common mortgage rate of interest of three.3% and a deal with sustaining a sustainable debt construction whereas rising its high-performing belongings.
Dividend & Valuation Evaluation
CAPREIT boasts a formidable monitor report of paying month-to-month dividends for greater than 25 consecutive years. Most significantly, the corporate by no means needed to reduce its dividend, even throughout difficult instances just like the Nice Monetary Disaster and the COVID-19 pandemic, when most REITs struggled considerably. It needs to be famous that the dividend was frozen in 2023.
Aside from the years between 2004 and 2011, when the dividend remained secure at C$1.08 yearly, CAPREIT has constantly elevated its dividend each different 12 months throughout its historical past.
Though the present annual fee of $1.13 for U.S. traders yields simply over 4.0%, which is beneath common for the sector and considerably underwhelming given as we speak’s rates of interest, we stay extremely assured in CAPREIT’s dividend security. Not solely has the corporate confirmed its resilience in harsh financial situations, however with a snug FFO payout ratio of 59% for 2026, there may be ample room for future hikes and no considerations about potential cuts.
Moreover, complete returns can even be aided by FFO progress and potential a number of enlargement. We mission FFO-per-share progress of three.5% per 12 months via 2031.
Shares of CAPREIT commerce at 14.2 anticipated FFO-per-share for the 12 months, which is beneath our goal a number of of 18.5 instances FFO. Reaching our goal a number of by 2031 would add 5.4% to annual returns over this era.
In complete, we mission that CAPREIT might present annual returns of 12.2% per 12 months over the subsequent 5 years. This stems from our FFO progress fee goal of three.5%, the 4.2% beginning yield, and a mid-single-digit tailwind from a number of enlargement.
Closing Ideas
CAPREIT is one among Canada’s most respected REITs, with a confirmed monitor report of rising its financials and dividends.
Total, whereas CAPREIT’s yield is among the many largest within the REIT sector, the inventory is prone to proceed satisfactorily serving income-oriented traders who search a predictable payout. In spite of everything, the corporate’s primary goal is long-term, secure, and predictable month-to-month money dividends.
We mission double-digit returns yearly via 2031, however keep our maintain score on the inventory on account of an absence of dividend progress in U.S. {dollars}.
Don’t miss the sources beneath for extra month-to-month dividend inventory investing analysis.
And see the sources beneath for extra compelling funding concepts for dividend progress shares and/or high-yield funding securities.
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