Retiring Soon or Already There? These 3 REITs Can Boost Your Monthly Income

If you are retired or getting close, you already know that a big yield number means nothing if the cash flow behind it is shaky — so let’s skip straight to the indicators that actually matter.

Start with cash flow coverage, not accounting earnings, especially for real estate investment trusts (REITs). Look for steady occupancy, rent growth that keeps up with costs, and a payout ratio that leaves breathing room when interest rates or refinancing get awkward. Then glance at debt and maturities, because dividends can feel “safe” right up until the balance sheet says otherwise.

SRU

SmartCentres REIT (TSX:SRU.UN) owns a large portfolio of Canadian retail real estate, anchored by names people actually visit, with an added growth engine in mixed-use development. Over the last year, the story stayed focused on steady leasing and a development pipeline that can create long-term value, including progress at Vaughan Metropolitan Centre and a large Canadian Tire flagship store in Toronto expected to be delivered in 2026.

In the fourth quarter of 2025, it delivered funds from operations (FFO) per unit of $0.54, up slightly from the prior year, while adjusted FFO per unit reached $0.48. It maintained its distribution at an annualized $1.85 per unit and improved its payout ratio to AFFO to 89.2% for full-year 2025. On valuation, it recently traded around 18.8 times trailing earnings and yielded about 6.6% annually, with monthly payments.

SmartCentres passes the basic cash flow checks: It has a stable payout, improving AFFO coverage, and tenant anchors that people still visit regularly.

CHP

Choice Properties REIT (TSX:CHP.UN) is one of the most retirement-friendly REIT models in Canada as it leans heavily on grocery-anchored and necessity-based real estate. It also has industrial exposure and a growing mixed-use and residential pipeline, but the heart of the cash flow comes from properties people keep using in every economy. Over the last year, it kept pointing to stable occupancy, rent spreads on renewals, and steady same-asset net operating income (NOI) growth. It also announced a small distribution increase, which is usually a good sign that management feels confident about cash flow durability.

In Q4 2025, it posted FFO per unit diluted of $0.262, and for full-year 2025 it reported FFO per unit diluted of $1.069. Management highlighted an AFFO payout ratio of about 88% for the year, which sits in the “not reckless” zone for a large REIT. It also raised its annual distribution rate to $0.78 per unit from $0.77, effective for the March 2026 record date. Valuation screens more reasonable than many income names, with a trailing price-to-earnings (P/E) around 14.7 and a forward yield near 4.9%.

SGR

Slate Grocery REIT (TSX:SGR.UN) brings the highest yield of this group, and it does it with a portfolio built around U.S. grocery-anchored centres. Grocery traffic tends to keep the lights on for the rest of the plaza, which supports occupancy and rent growth even in slower periods. Over the last year, Slate leaned into leasing momentum and highlighted how far below market its in-place rents still sit, which gives it runway for increases.

In Q4 2025, it reported FFO per unit of $0.25 and AFFO per unit of $0.19, with an AFFO payout ratio of 110.8% for the quarter. Portfolio occupancy ended 2025 at 94.4%, and the REIT completed 1.7 million square feet of leasing during the year, with strong rental spreads. It reported net asset value (NAV) per unit of $13.65 at year-end and a fixed charge coverage ratio of 1.8 times. The units have recently yielded about 7.4% annually and pay monthly.

That handsome 7.4% yield is sure to pique your interest, but don’t gloss over the 110.8% AFFO payout ratio here. Slate Grocery needs the below-market leases to convert into higher cash flow before retirees can count on it for totally reliable income. If you invest, size your portfolio position accordingly.

Bottom line

These three REITs offer different levels of comfort: SmartCentres for retail-anchored monthly income, Choice Properties for the most conservative grocery-backed cash flow, and Slate for the highest yield if you are willing to watch the payout coverage improve.

Here’s what $15,000 in each could bring in.

COMPANYRECENT PRICENUMBER OF SHARES YOU COULD BUY
WITH $15,000ANNUAL DIVIDENDTOTAL ANNUAL PAYOUT ON A $15,000 INVESTMENTPAYOUT FREQUENCYSRU.UN$28.00535$1.85$989.75MonthlyCHP.UN$15.87945$0.77$727.65MonthlySGR.UN$16.00937$1.18$1,105.66Monthly

The best retirement move is not chasing the biggest yield. It’s building a portfolio where the cash flow keeps showing up even when the economy tests your patience. If that kind of investing appeals to you, take a look at Stock Advisor Canada.

The post Retiring Soon or Already There? These 3 REITs Can Boost Your Monthly Income appeared first on The Motley Fool Canada.

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More reading

• 2 Undervalued Stocks and REITs Worth Buying in 2026
• The Average TFSA Balance for Canadians at 55
• Use a TFSA to Earn $1,000 a Month With No Tax
• How to Structure a $50,000 TFSA for Practically Constant Income
• Got $10,000? Buy This Dividend Stock for $56.50 in Monthly Passive Income

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Slate Grocery REIT and SmartCentres Real Estate Investment Trust. The Motley Fool has a disclosure policy.