Monthly Dividend Stock In Focus: True North Commercial REIT

Published on March 6th, 2026 by Bob Ciura

Monthly dividend stocks have instant appeal for many income investors. Stocks that pay their dividends each month offer more frequent payouts than traditional quarterly or semi-annual dividend payers.

For this reason, we created a full list of over 100 monthly dividend stocks.

You can download our full Excel spreadsheet of all monthly dividend stocks (along with metrics that matter like dividend yields and payout ratios) by clicking on the link below:

Monthly Dividend Stock In Focus: True North Commercial REIT

True North Commercial REIT (TUERF) is a monthly dividend stock with a high yield.

This potentially makes the stock more attractive for income investors looking for more frequent dividend payouts.

This article will analyze Trinity Capital in greater detail.

Business Overview

True North Commercial REIT is a Canadian office REIT that owns and operates a portfolio of single-tenant and select multi-tenant office properties across five provinces.

As of September 30th, 2025, the Trust owned 38 office properties totaling 4.5 million square feet, with 94% occupancy and a weighted average lease term of 4.3 years.

Roughly 72% of revenue is generated from government and credit-rated tenants, providing highly contractual and defensive cash flow despite structural challenges in the office sector.

The portfolio is concentrated in Ontario (notably the GTA and Ottawa), with additional exposure to Alberta, Atlantic Canada, and British Columbia. The REIT generated $88.3 million in rental revenue last year.

On November 11th, 2025, True North Commercial REIT reported its Q3 results for the quarter ended September 30th, 2025. Revenue from real estate properties was $22.0 million, slightly up year over year, driven primarily by termination income from a GTA tenant, partially offset by asset dispositions and lower occupancy at properties held for sale.

Net operating income declined 5% year over year to about $11.1 million, reflecting weaker same-property performance in Alberta and British Columbia and the impact of dispositions, despite contractual rent steps elsewhere in the portfolio.

Portfolio occupancy remained stable at 94% (excluding assets held for sale), with a 4.3-year weighted average lease term, supported by a tenant base dominated by government and credit-rated users. FFO per share of $0.40 was down from $0.45 last year despite ongoing unit repurchases.

Growth Prospects

True North’s FFO per share trajectory has been quite disappointing over the past decade. From 2015 to 2017, the REIT’s per-unit FFO was more or less stable.

In 2018, however, FFO per unit was pressured by timing differential dilution, which means equity issuance occurred before proceeds were fully deployed into acquisitions, so more units were outstanding without the immediate NOI contribution.

By 2019, NOI and scale grew with acquisitions, but management also pointed to higher G&A and rising finance costs tied to incremental debt as the portfolio expanded, keeping per-unit progress more muted than the top-line/NOI growth might imply.

In 2020, the REIT posted 99% contractual rent collection and sustained strong rent collections despite the pandemic, which helped keep cash flow comparatively resilient.

In 2021, results were stable, with the key bridge being dispositions earlier in the year offset by an acquisition and modest same-property NOI growth (supported by renewals and some termination payments).

In 2022, NOI benefited from same-property NOI uplift plus acquisitions, but was offset by occupancy decline and higher leasing-cost amortization/straight-line rent effects.

The sharp step-down into 2023–2024 was driven by a real mix shift and earnings headwinds. 2023 saw the lap of large prior-year termination income, meaningful lease expiries/vacancy, dispositions, and higher financing costs from materially higher mortgage refi rates and credit facility interest.

In 2024, revenue and NOI were again down year-over-year primarily because of disposition activity in an attempt to stabilize its highly leveraged balance sheet.

Moving forward, we expect no FFO per share growth as high indebtedness, elevated interest expense, ongoing asset dispositions, and limited leasing upside in the office portfolio are likely to offset the stability provided by government anchored tenants.

Dividend & Valuation Analysis

True North Commercial REIT benefits from high tenant credit quality, with a portfolio heavily leased to government and government-related tenants, which provides contractual cash flow stability and predictable rent collection even in weak economic environments.

The payout ratio also has improved materially and is now a more conservative 38% of expected 2025 FFO, offering some buffer at the distribution level.

Still, overall safety remains constrained by high indebtedness, with leverage still elevated at roughly ~59% of gross book value, leaving the Trust highly sensitive to interest rates, refinancing risk, and asset valuations.

TUERF trades for a P/FFO ratio of 4.8, below our fair value estimate of 6. Therefore, the stock is undervalued. An expanding valuation multiple could lift annual returns by 4.5% per year.

Including no expected FFO growth and the 8% dividend, total returns are estimated at 10.5% per year over the next five years.

Final Thoughts

True North has stable, government-backed cash flows and an improved payout profile, but high leverage and structural office market risks keep the investment firmly in the higher-risk category.

We see the possibility for annualized total returns of 9.8% through 2030, to be driven by the dividend and the possibility of a valuation tailwind.

Still, we stress that this return forecast is highly speculative. Regardless, we rate the stock a sell due to the lack of dividend growth.