A Tax-Free Financial savings Account (TFSA) is one of the best ways to focus on month-to-month earnings as excessive as $333, letting the money land in your account with out tax drag. That issues with month-to-month payers, since you’re feeling the profit instantly and you may reinvest sooner. The TFSA additionally retains issues easy. No monitoring overseas tax credit, no tax slips that change your temper in April, and no worrying that withdrawals will have an effect on authorities advantages later. The actual trick is choosing a month-to-month payer with money movement that may truly help the cheque.
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APR
Automotive Properties REIT (TSX:APR.UN) owns actual property leased to automotive dealerships and associated customers. That construction typically results in lengthy leases and predictable lease escalators, which is precisely what month-to-month earnings buyers need. The theme is boring in one of the best ways. Automobiles nonetheless want servicing, dealerships nonetheless want bodily areas, and tenants often don’t transfer on a whim.
Over the past 12 months, the story has leaned on regular progress, not reinvention. The actual property funding belief (REIT) has stored its month-to-month distribution at $0.81 annualized. That consistency issues as a result of numerous earnings buyers purchase this title particularly to construct a “month-to-month pay” stream in a TFSA. It additionally indicators that administration believes the payout matches the money movement profile.
The enterprise additionally stayed energetic on the portfolio facet. Administration added properties and is leaning on contractual lease will increase to carry income, whereas additionally pruning the place it is sensible. In Q3 2025, it famous rental income progress from properties acquired after Q3 2024 and lease escalations, partly offset by decrease lease after promoting the Kennedy Lands in October 2024. That sort of capital recycling could be wholesome, nevertheless it’s additionally a reminder that this REIT grows by means of offers in addition to lease clauses, so that you need to watch execution.
Into earnings
In Q3 2025, Automotive Properties reported rental income of $25.4 million, up 7.9% 12 months over 12 months, and whole Money internet working earnings (NOI) of $21 million, up 6.5%. Funds from operations rose to $12.9 million, or $0.255 per unit, and AFFO rose to $12.7 million, or $0.252 per unit (diluted). These are the numbers that preserve the month-to-month distribution sincere.
Distribution protection regarded cheap in that quarter. The REIT paid common money distributions of $0.204 per unit in Q3 2025, which labored out to an AFFO payout ratio of about 81%. That isn’t ultra-conservative, nevertheless it’s not reckless both, particularly for a property belief that goals to pay month-to-month. If you would like the earnings to really feel secure, you need that payout ratio to remain steady or drift decrease over time, not creep greater.
Valuation is the place this will begin to really feel like a TFSA-friendly instrument. With the distribution at $0.0685 monthly, you get $0.822 per 12 months. The long run outlook hinges on the identical two levers most REIT buyers ought to watch: regular lease progress and regular financing. In the meantime, right here is how a lot buyers would want to place in if they need $333 monthly.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | ANNUAL DIVIDEND | ANNUAL TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| APR.UN | $11.59 | 4,934 | $0.81 | $3,996.54 | Month-to-month | $57,185.06 |
Backside line
Right here’s the clear takeaway. APR.UN could be a stable TFSA month-to-month earnings candidate as a result of the distribution is regular; the Q3 2025 money movement traces moved the suitable means, and the payout ratio in that quarter left some respiratory room. However it’s not a assured clean experience. Leverage sits within the high-40% vary, debt maturities nonetheless matter, and the unit worth can wobble even when the lease cheques keep calm. If you would like tax-free month-to-month money and you may deal with some actual property volatility, it may match the job.