Canadian actual property funding trusts (REITs) are staging a exceptional comeback in early 2026, buoyed by stabilizing rates of interest from the Financial institution of Canada and protracted e-commerce and logistics demand. Buyers with a nostril for worth ought to load up now on choose names buying and selling at reductions to their intrinsic price, delivering juicy dividend yields and development prospects.
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Dream Industrial REIT
Dream Industrial REIT (TSX:DIR.UN) is your ticket to the economic revolution underway proper now. The corporate’s high-quality belongings close to city centres are tailored for e-commerce distribution, with near-shoring traits including tailwinds throughout North America and Europe.
This inventory trades at a 20% low cost to non-public market worth and DCF honest worth (a minimum of in line with my fashions). And with a dividend yield of 5.3%, there’s a lot to love in regards to the long-term revenue part of this REIT. Certainly, I see strong capital appreciation and passive revenue returns over time, with my base case being double-digit whole returns over the long-haul. On the finish of the day, that’s what I’m after.
Quick-term dips from JV partnerships are fading, paving the way in which for earnings acceleration as capital will get redeployed. With an affordable price-earnings a number of and the inventory buying and selling under its honest worth estimate in my eyes, it is a inventory that has a spot in a well-diversified portfolio.
With administration guiding towards occupancy of greater than 95% in its core properties, I feel there’s loads of long-term rental and internet revenue development forward. Certainly, Dream Industrial stays certainly one of my prime long-term picks within the REIT area for these causes and extra.
Granite REIT
One other prime actual property funding belief I’ve begun to get more and more bullish on is Granite REIT (TSX:GRT.UN).
This pure-play logistics landlord simply posted blockbuster 2025 outcomes. Income surged to greater than $618 million from $569 million within the prior 12 months. Much more impressively, working revenue surged to $519.8 million, proof of its mission-critical warehouses leased to investment-grade tenants on long-term, CPI-linked contracts. Moreover, same-property NOI development clocked mid-single digits regardless of sector headwinds.
These tailwinds are supported by a pristine stability sheet boasting a debt-to-equity ratio of simply 0.5 occasions and curiosity protection of three.7 occasions. That makes this inventory an ultra-resilient possibility, even when charges tick up.
Buying and selling at a rock-bottom price-book ratio of 0.7 occasions, that is an undervalued inventory relative to its friends. And given the corporate’s 15-year dividend development streak and three.7% yield, I feel the long-term revenue alternative right here is notable. These considering of including a compounder with long-term whole return upside shouldn’t sleep on Granite REIT proper now, in my opinion.