Introduction: Why REITs Are a Big Deal in Canada
If you’ve ever dreamed of owning real estate in Canada but didn’t want the headaches of tenants, leaking roofs, or six-figure down payments, Canadian REITs (Real Estate Investment Trusts) might just be your golden ticket.
These investment vehicles allow you to buy shares in professionally managed property portfolios—whether apartments in Toronto, shopping centers in Vancouver, or healthcare facilities in Montreal—without ever setting foot in a lawyer’s office or arguing with a tenant about late rent.
What makes Canadian REITs especially attractive? They’re tax-friendly, dividend-rich, and structured to give both small and large investors a piece of the real estate pie. But here’s the million-dollar question: which REITs are worth your money in 2025?
Let’s unpack everything—from how they work, to why they matter, to the top 10 Canadian REITs you should keep on your radar.
What Exactly Are REITs? (And Why Should You Care?)
REITs aren’t some financial gimmick. They were born in the 1960s in the U.S., thanks to President Eisenhower, who wanted regular people—not just the ultra-wealthy—to access real estate profits. Canada adopted the model decades later, and by the mid-1990s, REITs were flourishing on the Toronto Stock Exchange (TSX).
At their core, REITs are companies that pool investor money to buy, develop, and manage income-producing real estate. The income is then passed back to investors in the form of dividends.
For a Canadian REIT to qualify:
- 75% of its income must come from real estate-related sources (rent, leases, property sales).
- 90% of taxable income must be paid back to shareholders as dividends.
- It must have at least 100 shareholders, preventing concentrated ownership.
Here’s the kicker: REITs themselves don’t pay corporate income tax on distributed dividends. You, as the investor, pay tax only when you receive your share. That’s why many REITs in Canada are dividend aristocrats—funds that consistently raise payouts year after year.
Why Canadian REITs Are a Smart Investment
Still wondering if REITs beat buying a condo in downtown Toronto? Consider these advantages:
- Liquidity like stocks: You can sell shares anytime instead of waiting months to offload a house.
- Low entry barrier: Start investing with as little as $100.
- Diversification: Spread risk across apartments, malls, warehouses, even hospitals.
- Inflation protection: Rental income usually rises with inflation, safeguarding your purchasing power.
- No landlord duties: Forget clogged sinks and late-night tenant calls.
In short: Canadian REITs give you the upside of property ownership without the hassle.
How Canadian REITs Work in Practice
As of 2025, there are 34 Canadian REITs listed on the TSX, with 20 boasting market capitalizations above $1 billion. These funds invest across different property types, such as:
- 🏘️ Residential: Apartments, townhomes, and suburban communities.
- 🏢 Office: Corporate towers and business hubs.
- 🛍️ Retail: Shopping centers, supermarkets, and street-level retail.
- 🏨 Hospitality: Hotels, resorts, and vacation apartments.
- 📦 Logistics: Warehouses, data centers, and self-storage.
- 🏥 Healthcare: Hospitals, clinics, and senior living facilities.
- 🎓 Education: Student housing and campuses.
- 🔄 Diversified: A mix of several sectors.
Foreign investors are welcome too—but they can’t own more than 49% of any single REIT.
The Market Backdrop: Canada’s Real Estate Rollercoaster
Canada’s property market is famous for its resilience, but the last five years have been a wild ride.
- 2020 Pandemic Shock: Demand for offices and rental apartments collapsed.
- 2022 Boom: Average home prices hit a record $816,720 CAD before affordability concerns slowed demand.
- 2023-2024 Dip: Prices fell sharply in British Columbia (down 47%) and moderately in Toronto (down 9.2%).
- 2025 Outlook: Thanks to immigration growth and housing shortages, analysts predict a 4.06% market growth through 2028, reaching a staggering $9.54 trillion.
What does this mean for REITs? Funds that manage long-term rentals and diversified portfolios are positioned to thrive, even if homeownership remains out of reach for many Canadians.
Top 10 Canadian REITs to Watch in 2025
Here’s where the rubber meets the road. Below are the best-performing and most promising REITs in Canada, each with a unique edge:
1. CAPREIT (CAR.UN) – Canada’s Apartment Giant
- Market Cap: $7.7B
- Dividend Yield: 3.17%
- Owns 67,000+ residential units across Canada, the Netherlands, and Ireland.
- Known as Canada’s largest residential landlord.
2. SmartCentres REIT (SRU.UN) – The Walmart-Backed Retail King
- Market Cap: $4.0B
- Dividend Yield: 7.84%
- 72% of properties tied to Walmart stores.
- Major investor in the Vaughan Metropolitan Centre mega-project.
3. Granite REIT (GRT.UN) – Industrial Powerhouse
- Market Cap: $4.2B
- Dividend Yield: 4.78%
- Originated from Magna International.
- Holds logistics, office, and manufacturing assets in North America and Europe.
4. InterRent REIT (IIP.UN) – The Turnaround Specialist
- Market Cap: $1.7B
- Dividend Yield: 2.96%
- Buys poorly managed apartments, renovates them, and raises rental value.
- Strong focus on sustainability and tenant satisfaction.
5. CT REIT (CRT.UN) – Retail Anchor Leader
- Market Cap: $3.2B
- Dividend Yield: 6.44%
- Owns 370+ commercial properties across Canada.
- Long-term leases in prime, high-traffic locations.
6. Allied Properties REIT (AP.UN) – Creative Office Innovator
- Market Cap: $2.3B
- Dividend Yield: 10.64%
- Converts historic industrial buildings into trendy office lofts.
- Popular among tech, fashion, and creative industries.
7. Killam Apartment REIT (KMP.UN) – Affordable Housing Player
- Market Cap: $2.0B
- Dividend Yield: 4.00%
- 165+ residential properties, often in rural and affordable segments.
- Attractive to immigrants and young tenants.
8. H&R REIT (HR.UN) – The Diversification Champion
- Market Cap: $2.3B
- Dividend Yield: 6.72%
- Portfolio split across residential, retail, office, and industrial sectors.
9. Choice Properties REIT (CHP.UN) – Loblaw’s Real Estate Arm
- Market Cap: $9.5B
- Dividend Yield: 5.68%
- Owns 752 properties worth $16B.
- Strong focus on redevelopment in Toronto and Scarborough.
10. NorthWest Health REIT (NWH.UN) – Healthcare Specialist
- Market Cap: $1.0B
- Dividend Yield: 8.14%
- Hospitals, clinics, and medical centers across Canada, Germany, Brazil, and the UK.
REITs vs. ETFs: Which Should You Choose?
If picking individual REITs feels overwhelming, you can also buy REIT ETFs—funds that bundle multiple REITs into one stock. ETFs give you instant diversification and are perfect if you’re just dipping your toes into the real estate market.
Final Thoughts: Are Canadian REITs Worth It in 2025?
Absolutely. For investors looking for stable dividends, inflation protection, and exposure to Canada’s resilient real estate market, REITs remain a compelling option.
While no investment is risk-free, the track record of Canadian REITs—especially dividend aristocrats like CAPREIT and SmartCentres—speaks volumes. Whether you’re a cautious beginner or a seasoned investor seeking passive income, REITs offer a way to build wealth without becoming a landlord.
So, next time you see headlines about skyrocketing property prices in Toronto or Vancouver, remember: you don’t need to buy the condo to profit—you just need to own a piece of the REIT.