If you’re looking for a reliable, long-term Canadian stock to buy and hold, Granite Real Estate Investment Trust (TSX:GRT.UN) should be at the top of your list. While it may not generate buzz like tech or crypto stocks, Granite quietly checks all the boxes that long-term investors care about: dependable income, consistent growth, and resilience across economic cycles.
Solid Performance
Over the past year, Granite has strengthened its business fundamentals. The stock is up more than 8% in that time, all while delivering a steady dividend yield north of 4%. That rare combination of capital appreciation and income — especially from a globally diversified REIT — makes it a compelling long-term pick.
In Q2 2025, Granite posted net operating income of $123.4 million, a 6.6% increase year-over-year. That growth was fueled by rent escalations, strong leasing activity, and completed development projects in Canada, the U.S., and the Netherlands. Same-property NOI rose 4.6% on a cash basis, indicating solid demand.
Funds from operations (FFO) came in at $85.4 million, up from $83.5 million a year earlier. Adjusted FFO reached $75.1 million — a clear sign of stable and improving cash flow.
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Strong Occupancy, Smart Growth
Occupancy climbed to 95.8% in Q2, and by August, it had improved further to 96.5%. Granite isn’t just collecting properties — it’s building a portfolio with long-term performance in mind. Focused on industrial, logistics, and e-commerce infrastructure, its assets are critical components of the modern supply chain.
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While many office REITs are struggling, Granite continues to thrive. It has been securing new tenants at average lease spreads 18% higher than expiring rents — a strong indicator of portfolio quality and pricing power.
Granite also acquired two fully leased, modern distribution centres in Florida for $49.5 million. Built in 2021 and offering a 5% yield out of the gate, these assets are expected to boost returns by over 15% within two years — a smart, forward-looking move to enhance long-term cash flow and value.
Organic Growth and Shareholder Focus
Growth isn’t just coming from acquisitions. Granite has been turning around underused properties in U.S. states like Kentucky, Georgia, and Indiana by signing new leases and converting vacant space into income-producing assets.
Adding to its shareholder-friendly approach, Granite repurchased over $80 million of its own units during the quarter — a clear vote of confidence in its valuation and a move that enhances shareholder returns.
Financial Health
For those concerned about balance sheet strength, Granite remains in solid shape. Net leverage rose to 36%, which still falls within comfortable REIT levels. The increase was primarily due to temporary credit draws and reclassifying some assets as held for sale — not signs of financial strain, but strategic capital allocation.
Final Thoughts
Granite REIT offers a powerful mix of income, stability, and strategic growth, making it an ideal candidate for a long-term, buy-and-hold portfolio. Whether you’re a retiree looking for steady income or a younger investor building wealth, this REIT deserves serious consideration.
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