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Best REITs in Canada (2026): Canadian Real Estate Investment Trusts by Sector

Updated

Real estate investment trusts (REITs) let investors own a share of apartment buildings, warehouses, shopping centres and offices through a unit that trades like a stock. This page lists Canadian REITs by property sector and the measures used to compare them. How a REIT works, how its distributions are taxed and how it compares with owning property is explained in our REIT guide. Yields are from Toronto Stock Exchange data (TMX Money) as of September 25, 2026; they move with unit prices every day. Every other guide in this section is listed in the Canadian stocks hub.

Top Canadian REITs by Sector

Industrial REITs

REITTickerYieldFocus
Granite REITGRT.UN4.3%Warehouses, distribution
Dream IndustrialDIR.UN5.7%Industrial, logistics

Why industrial: E-commerce demand drives warehouse/logistics growth.

Residential REITs

REITTickerYieldFocus
Canadian Apartment Properties (CAPREIT)CAR.UN4.9%Multi-family apartments
Boardwalk REITBEI.UN2.9%Apartments across Canada
Killam Apartment REITKMP.UN4.2%Apartments and manufactured-home communities (based in Halifax)

Why residential: People need housing in any economy, so rents tend to be steadier than in other property types.

Retail REITs

REITTickerYieldFocus
CT REITCRT.UN5.9%Single-tenant retail; Canadian Tire is the main tenant
RioCan REITREI.UN5.7%Retail, mixed-use
SmartCentres REITSRU.UN7.0%Value-oriented retail, rental housing, office and self-storage
First Capital REITFCR.UN4.0%Open-air, grocery-anchored neighbourhood shopping centres
Choice PropertiesCHP.UN5.3%Necessity-based retail, industrial and residential

Why retail: Grocery-anchored and necessity retail tend to hold tenants through downturns better than discretionary retail.

Office REITs

REITTickerYieldFocus
Allied Properties REITAP.UN9.7%Urban, creative office
Dream Office REITD.UN5.8%Urban office
True North CommercialTNT.UN8.5%Office (urban and secondary markets)

Caution: Office sector faces WFH headwinds. Higher yields reflect risk.

Diversified REITs

REITTickerYieldFocus
H&R REITHR.UN6.3%*Residential, industrial and office (Canada and US)

*In August 2026, H&R REIT agreed to be acquired in a transaction valued at about $6.7 billion including debt, by GO Residential REIT and a group including Blackstone Real Estate, Crestpoint Real Estate Investments, PSP Investments and a company controlled by the Hofstedter family. Unitholders are to receive $4.28 in cash plus 0.5688 of a GO REIT unit per H&R unit (valued at $12.01 when announced). The deal is expected to close in the fourth quarter of 2026, after which H&R will no longer trade on its own.

Artis REIT (AX.UN), another diversified REIT, no longer trades: it combined with RFA Financial, and its units were delisted from the TSX on February 3, 2026. Dream Unlimited (DRM) is a real estate company, not a REIT; the Dream family’s REITs are Dream Industrial (DIR.UN) and Dream Office (D.UN).

Healthcare REITs

REITTickerYieldFocus
Vital Infrastructure Property Trust (formerly NorthWest Healthcare Properties REIT)VITL.UN7.0%Outpatient, hospital and health research properties (international)
Chartwell Retirement ResidencesCSH.UN3.1%Seniors housing
Sienna Senior Living (a corporation, not a REIT)SIA4.6%Retirement living and long-term care

NorthWest Healthcare Properties REIT changed its name to Vital Infrastructure Property Trust on March 11, 2026, and now trades as VITL.UN.

Why healthcare: Aging population drives demand.

REIT ETFs (Diversified Exposure)

ETFTickerDistribution yieldMERHoldings
BMO Equal Weight REITsZRE4.67%0.61%18
iShares S&P/TSX Capped REITXRE4.47%0.60%14
Vanguard FTSE Canadian Capped REITVRE2.81%0.32%18
CI Canadian REIT ETF (actively managed)RIT4.89%0.87%35

MERs, holdings and yields are from each provider’s fund page or fact sheet (RIT’s yield from TMX): VRE’s figures are as of August 31, 2026, XRE’s as of October 5, 2026 and ZRE’s as of August 31, 2026; RIT’s yield is as of September 25, 2026 and its holdings count as of February 28, 2026.

ETF advantage: Instant diversification across REIT sectors.

How to Evaluate REITs

Key Metrics

MetricWhat It MeansGood Range
FFO (Funds from Operations)Cash flow measureGrowing
AFFO (Adjusted FFO)More accurate cash flowGrowing
Payout ratioDistributions ÷ AFFO70-90%
NAV (Net Asset Value)Property value per unitTrading near NAV
Debt/AssetsLeverageUnder 50%
Occupancy rate% of space rented95%+
Lease termAvg remaining lease5+ years

Valuation

MetricCalculationUse
Price/FFOPrice ÷ FFO per unitLike P/E for REITs
Price/NAVCompare to property valueUnder 1.0 = discount
YieldDistribution ÷ PriceHigher = more income

REIT Distributions

How They Work

ComponentDescriptionTax Treatment
Other incomeMostly net rental incomeFully taxable, like interest
Canadian dividendsFrom taxable Canadian corporations the REIT owns (usually small)Dividend tax credit
Capital gainsFrom property sales50% taxable
Return of capital (ROC)Tax-deferredLowers the ACB*
Foreign incomeNon-CanadianFully taxable

*ROC defers tax until sale; increases capital gain later.

Annual T3 Breakdown

Each REIT reports the split on a T3 slip (Statement of Trust Income Allocations and Designations).

An illustrative split (actual splits vary by REIT and year):

ComponentPercentage
Other income30%
Capital gains10%
Return of capital45%
Foreign income15%

Tax-Efficient REIT Holding

Best Account for REITs

AccountWhy
TFSATax-free growth; no tax slip complexity
RRSPTax-deferred; good for high distributions
Non-registeredComplex tax; ROC tracking required

In practice: holding REITs in a TFSA or RRSP avoids the annual tax-slip complexity.

US REITs

ConsiderationDetails
Withholding tax15% on distributions (treaty rate)
RRSPExempt from withholding
TFSASubject to 15% withholding
Non-registered15% withholding (foreign tax credit)

REITs vs Physical Real Estate

FactorREITsPhysical Property
Minimum investmentThe price of one unitA down payment, usually tens of thousands of dollars
LiquiditySell on any trading dayWeeks or months to sell
DiversificationMultiple propertiesUsually single property
ManagementProfessionalYou or hire
LeverageBuilt-inMortgage required
Tax complexityAnnual T3 slipRental income reporting
ControlNoneFull

Building a REIT Portfolio

Sample Allocations

These are illustrations of how the sectors can be combined, not recommendations.

Balanced (Income + Growth)

SectorAllocationExample
Industrial25%Granite (GRT.UN)
Residential25%CAPREIT (CAR.UN)
Retail25%CT REIT (CRT.UN)
Healthcare25%Vital Infrastructure (VITL.UN)

High Income

SectorAllocationExample
Retail40%SmartCentres (SRU.UN)
Healthcare35%Vital Infrastructure (VITL.UN)
Industrial25%Dream Industrial (DIR.UN)

Growth-Focused

SectorAllocationExample
Industrial40%Granite (GRT.UN)
Residential40%Boardwalk (BEI.UN)
Data centers20%US data center REITs

Simple Approach: One ETF

OptionTicker
Lowest costVRE
Equal weightZRE
Most holdingsRIT (actively managed)

REIT Risks

RiskDescriptionMitigation
Interest rate sensitivityREITs fall when rates riseDiversify, long view
Sector riskOffice struggling post-COVIDAvoid/limit office
Economic cyclesRetail weak in recessionFocus on necessity retail
Tenant concentrationOne big tenant leavesCheck tenant list
Leverage riskHigh debt amplifies lossesUnder 50% debt/assets
Distribution cutREIT reduces payoutCheck payout ratio

When REITs Perform Best

EnvironmentREIT Performance
Falling interest ratesGenerally positive
Rising ratesOften negative
Economic growthPositive (higher rents)
RecessionSector-dependent
High inflationMixed (some pass-through)

Sources

The figures and rules on this page come from these sources, last checked against them between September 23, 2026 and October 13, 2026. How we check facts.