Up to date on April thirtieth, 2026 by Josh Arnold
Worldwide REITs could possibly be precious for buyers concerned about diversifying their portfolios. Many worldwide Actual Property Funding Trusts (REITs) are primarily based outdoors the U.S. and have high quality enterprise fashions and excessive dividend yields.
One instance is Granite Actual Property Funding Belief (GRTUF), a Canadian REIT. Granite has a confirmed enterprise mannequin and pays a 5.6% dividend yield, which is about 4 occasions the extent of the S&P 500.
Granite additionally pays its dividends month-to-month, which is a extra enticing dividend schedule than REITs, which pay quarterly dividends.
Granite is considered one of 119 shares that pay month-to-month dividends. You’ll be able to entry the total database of month-to-month dividend shares (together with necessary monetary metrics resembling price-to-earnings ratios and dividend yields) by clicking on the hyperlink under:
Granite is listed in Toronto and New York, however for this text, we’ll use the New York itemizing underneath ticker GRTUF, and US {dollars}.
This text will define Granite’s enterprise mannequin and talk about its deserves as a dividend inventory.
Enterprise Overview
Granite owns and manages predominantly industrial actual property properties in North America and Europe. It transformed to a REIT on January 3, 2013, and has remodeled right into a leaner, extra environment friendly belief, with higher-quality property.
Supply: Investor presentation
Over time, Granite has grown from a smaller, much less precious portfolio that was nearly totally dependent upon one tenant (Magna), to a diversified, a lot bigger portfolio with considerably larger common property values. The belief has undergone a change lately to succeed in these objectives, and it’s clear that the hassle has paid off.
The belief’s income-producing portfolio consists of Multi-Goal, Logistics and Distribution Warehouses, and Particular-Goal services. It owns a complete of 62.6 million sq. ft unfold throughout 147 properties in Europe, Canada, and the U.S. Mixed, these properties have a carrying worth of about $9.5 billion.
Supply: Investor presentation
Granite is current solely in nations with little or no geopolitical danger and in properties and industries with sturdy long-term fundamentals. It’s nonetheless closely concentrated within the US and Canada, with a bit of greater than two-thirds of its property’s sq. footage in North America.
Nonetheless, its worldwide publicity gives a diversifying part to the belief’s outcomes. Granite focuses on properties that help e-commerce growth and are positioned strategically to help such companies in the very best markets.
Supply: Investor presentation
Granite seeks out areas which have proximity to main cities and have favorable demographics, together with vital infrastructure and accessible labor swimming pools. As well as, it already owns trendy properties, which means capital expenditure wants are low, with tenants with excessive switching prices.
These traits imply that Granite chooses solely essentially the most favorable properties to personal, with long-term tenants who’ve the very best probability of thriving in numerous financial climates. Lastly, it focuses on the large shift to e-commerce, notably on meals and prescription drugs.
Granite reported fourth quarter and full-year earnings on February twenty fifth, 2026, and outcomes have been fairly good. Income for the yr was $452 million, up from $415 million in 2024. The rise in income was pushed primarily by contractual hire changes, new leases and renewals, and contributions from acquisitions.
General occupancy was 98%, up from 94.9% a yr earlier, which was attributable to sturdy demand for the belief’s logistics markets. FFO-per-unit got here to $4.31 for the yr, up strongly from $3.78 in 2024. This was pushed by the acquire from larger rental revenue, same-property web working revenue margin development, and favorable foreign exchange translation. These have been partially offset by larger working prices and capex. We anticipate $4.58 per share in FFO for 2026.
Progress Prospects
Granite’s outlook is constructive from a basic perspective, with the belief within the midst of a change. Granite is within the closing phases of its years-long transformation by which it’s optimizing its value of capital, leverage on the stability sheet, and reaching what it considers a saturation level in important goal markets.
Lately, the belief has skilled vital transition, switching out its CEO, board, and management workforce. In the present day, the belief is concentrated on reworking its portfolio by the sale of non-core property, enhancing its presence within the U.S., and making purchases in choose European markets. The belief shouldn’t be increasing its portfolio right this moment, as it’s truly barely smaller than it was a yr in the past. Nonetheless, the worth of the portfolio has grown considerably, and the combination is extra favorable for longer-term development.
Granite seems to have achieved its development objectives sooner than anticipated, and consequently, we anticipate incremental funding to gradual considerably within the coming years. A growth pipeline continues to be in progress, with some properties in Europe and North America. Nonetheless, Granite’s transformative strikes have largely been accomplished.
Granite’s development outlook is favorable, provided that it ought to proceed to see larger hire costs and a bigger funding ebook by acquisitions and growth. We’re on the lookout for 3% annual development going ahead.
Dividend Evaluation
Granite presently pays a month-to-month dividend of $0.2958 per share in Canadian {dollars}, which equates to ~$0.22 month-to-month in US {dollars}.
On an annualized foundation, the present common dividend cost is $3.55 per share in Canadian foreign money. In U.S. {dollars}, this works out to roughly $2.64 per share. This equates to a 3.9% yield.
If U.S. buyers personal the inventory, returns shall be topic to foreign money danger as it’s translated from Canadian {dollars} to U.S. {dollars}. The dividend to U.S. buyers will rely partly upon prevailing trade charges, which presently stand at $1 CAD = $0.73 USD. One other necessary consideration for investing in worldwide shares is withholding taxes.
Notice: As a Canadian inventory, a 15% dividend tax shall be imposed on US buyers investing within the firm outdoors of a retirement account. See our information on Canadian taxes for US buyers right here.
Granite’s 3.9% dividend yield is supported by underlying money circulate. Primarily based on the adjusted FFO for 2026, Granite’s payout ratio is 56%. That’s meaningfully under earlier years and thought of very protected within the REIT universe the place payout ratios are usually fairly excessive.
We consider Granite will develop FFO within the coming years, so along with the present truthful payout ratio, we see the distribution as protected.
Last Ideas
Traders can obtain excessive ranges of revenue and diversification advantages by contemplating REITs primarily based outdoors the US. Granite REIT is an efficient instance of a world REIT with a high-quality enterprise mannequin, and a good dividend yield of three.9%.
The belief has largely accomplished its transformation effort, which diversified its portfolio, lowered danger, and enhanced its earnings development prospects. Because the payout ratio has been lowered considerably, we see this as supportive of future dividend will increase. In consequence, Granite stays a horny possibility for buyers on the lookout for month-to-month dividends and a ~4% dividend yield.
Don’t miss the assets under for extra month-to-month dividend inventory investing analysis.
And see the assets under for extra compelling funding concepts for dividend development shares and/or high-yield funding securities.
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