Real-estate investment trusts (REITs) can be a core building block for income-focused investors, especially when held in tax-advantaged accounts like a TFSA or RRSP. REITs typically distribute most of their earnings as dividends, and the right ones can combine steady cash flow with long-term growth potential. Here are three Canadian REITs that look appealing heading into March 2026.

1) Canadian Apartment Properties REIT (TSX: CAR.UN)
This REIT specializes in multi-unit residential properties across major Canadian markets. With occupancy rates generally high and rental demand strong — especially in urban centres — apartment REITs like CAR.UN benefit from stable, recurring rent streams. Demographic trends, including ongoing population growth and tight housing supply in key cities, support rental demand and pricing power over time. For income-oriented investors, residential REITs often offer steady dividends with lower cyclicality than more volatile property segments.

2) SmartCentres Real Estate Investment Trust (TSX: SRU.UN)
SmartCentres focuses on retail-anchored shopping centres, many of which are anchored by essential retailers like grocery stores or big-box brands. These types of centres have proven more resilient than older mall formats, as everyday necessities continue to draw foot traffic even when consumer spending is uneven. With a combination of long-term leases and diversified tenant mix, SmartCentres’ cash flow profile supports regular distributions while providing some exposure to retail real estate that adapts to changing shopping habits.

3) Choice Properties REIT (TSX: CHP.UN)
Choice Properties holds a portfolio that includes industrial, retail and office properties — giving it a diversified mix within the real estate space. Industrial assets, in particular, have been strong performers as e-commerce growth fuels demand for logistics and distribution facilities. Retail assets tied to essential services and grocery-anchored centres also add stability. The diversified nature of Choice’s property base can help smooth income streams across varying economic cycles, making it a good option for investors who want broad exposure within real estate without concentrating risk in a single property type.

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Why These REITs Are Worth Watching in 2026

All three of these Canadian REITs combine income and diversification in ways that appeal to long-term holders:

Residential REITs tap recurring demand for housing.
Retail-anchored REITs benefit from essential consumer patterns.
Diversified REITs smooth volatility across property types.

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For investors seeking passive income with real asset exposure, these REITs offer different angles on real estate fundamentals while maintaining the regular distributions that make this asset class attractive.