Best Canadian REITs to invest in for 2025

Canadian Apartment Properties REIT (CAPREIT) (TSX: CAR.UN)

CAPREIT is Canada’s largest residential REIT, owning 47,900 residential apartment suites across Canada. It offers a dividend yield of 3.75% and a market capitalization of $6.7 billion. Since its inception, CAPREIT has shown consistent growth and may appeal to income and growth-oriented investors. This REIT prospers from the strong demand in the rental housing market.

Residential REITs | more details

Property types: Apartments, condominiums, houses, rental housing and student housing..

More examples: . Boardwalk REIT (TSX: BEI.UN). Canadian Apartment Properties REIT (TSX: CAR-UN). Centurion REIT (TSX: CEN100.CF). Killam Apartment REIT (TSX: KMP-UN).

Performance: When demand for rental housing increases, residential REITs perform well. However, they may be negatively affected during economic downturns. Properties focused on affordable housing are typically more resilient than luxury housing.

Risks: Tenant defaults, regulatory changes, house market conditions and unsteady rental demand.

Returns: Provide stable dividends and potential long-term capital appreciation.

NorthWest Healthcare Properties REIT (TSX: NWH.UN)

NorthWest is primarily focused on healthcare real estate. Their portfolio consists of hospitals, clinics and medical buildings across Canada and globally. It offers a dividend yield of 7.91%, along with a market capitalization of $1.1 billion. Within the past five years, in light of its challenges, it has expanded internationally and may appeal to income-focused investors. Overall, this REIT has potential for growth as it maintains a high occupancy rate and long-term leases. 

Healthcare REITs | more details

Property types: Hospitals, medical offices, and long-term care facilities.

Other top healthcare REITs: NorthWest Healthcare Properties REIT (TSX: NWH.UN) and Welltower Inc (NYSE: WELL) Note: Allthough Welltower are based in the U.S. they have operations in Canada. 

Performance: Less sensitive to economic conditions because demand for healthcare is strong. They usually perform well in economic growth and recessionary cycles. 

Risks: Influenced by changes in policies and regulations.

Returns: Offer stable, less volatile long-term returns for income-oriented investors. 

SmartCentres REIT (TSX: SRU.UN)

As Canada’s leading retail REIT, SmartCentres owns 195 properties nationwide and is known for having Walmart as its largest tenant. It has an impressive 7.59% dividend yield and a market capitalization of $4.1 billion. SmartCentres offers stable cash flow and long-term growth potential, making it attractive to income-focused investors. While e-commerce growth may pose a threat, SmartCentres is adapting by expanding into mixed-use developments that integrate residential and commercial spaces to strengthen its value in the years ahead. 

Industrial REITs | more details

Property types: Storage facilities, data centres, manufacturing facilities and warehouses.

Other great industrial REITs:  

• Dream Industrial REIT (TSX: DIR.UN)
• Granite REIT (TSX: GRT.UN)
• Melcor REIT (TSX: MR.UN)
• Nexus Industrial REIT (TSX: NXR.UN) 

Performance: Industrial REITs perform well when there’s growth in e-commerce and technology. They can withstand recessions, particularly in the logistics and warehouse industries.

Risks: These REITs can be impacted by global supply chain issues, regulatory issues and tenant defaulting on lease payments.

Returns: Generates steady income from commercial tenants and growth potential. 

iShares S&P/TSX Capped REIT Index ETF (Ticker: XRE)

iShares’ XRE allows investors to have a diversified portfolio of Canadian REITs spanning residential, commercial and industrial sectors. This ETF has a 5.68% dividend yield and a market capitalization of around $1.2 billion. Over the past five years, XRE has given investors access to different Canadian real estate market sectors and provides a decent dividend yield for income-focused investors. Interest rate fluctuations and sector-specific impacts have influenced its performance. 

Note: Dividend yields and market capitalizations will fluctuate. Investors should check for current data before making any investment decisions.

Diversified REITs | Less fees, lower volatility and potential for higher yields

A diversified REIT is one company managing multiple property types, while a REIT ETF is a fund holding multiple REITs. If you want to spread risk across multiple REITs with one investment, an ETF may be the better choice.

• Property types: Mix-use properties across different sectors.
• Examples: Crombie Real Estate Investment Trust (TSX: CRR.UN), H&R REIT (TSX: HR.UN) and Morguard REIT (TSX: MRT.UN)
• Performance: During market downturns, they tend to perform better because of their exposure to various property sectors.
• Risks: Managing several sectors and property types efficiently can be challenging.
• Returns: May provide moderate growth and balanced returns. Generally, they are lower risk because they hold multiple property types.

Dream Industrial REIT (TSX: DIR.UN)

Dream Industrial delivers a solid 5.78% dividend yield with a market cap of $3.5 billion, making it a great option for income-focused investors.

Specializing in industrial properties like warehouses and logistics centres, this REIT benefits from the continued rise of e-commerce (think Amazon warehouses). With long-term leases and reliable tenants, it provides steady cash flow and less exposure to economic downturns compared to retail or office REITs. Plus, with properties across Canada, the U.S., and Europe, it offers global diversification, reducing risk from any single market. For investors looking for stable income and long-term growth, Dream Industrial REIT is a strong contender.