Written by Amy Legate-Wolfe at The Motley Fool Canada
Finance stocks can pay great dividends, but they are not automatically the best dividend investments. Banks and insurers are tied to credit cycles, housing, and regulation. When the economy slows, dividends are still a priority, but sentiment can swing hard and fast.
You can also end up overexposed without realizing it, as Canadian portfolios already lean heavily toward financials. A good dividend portfolio should not rely on one sector behaving perfectly forever. That’s why today, we’re going to expand outside finance to focus on one real estate investment trust (REIT) worth considering.
True North Commercial REIT (TSX:TNT.UN) is a very different kind of dividend payer. It is an office REIT, and that alone explains why the market has been cautious. Higher rates raise borrowing costs, and the work-from-home narrative makes investors assume offices are empty. That fear can push the units around more than day-to-day rent collection does. It is why the price can feel moody, even when properties keep doing what properties do.
That volatility is not fun, but it can create opportunities for patient-income investors. If you buy a monthly payer inside a Tax-Free Savings Account (TFSA), the cash flow lands quietly in your account, and you can reinvest it without tax drag. When a sector is unloved, the market’s expectations are lower. That means steady, ordinary results can matter more than flashy growth. The key is to separate the headline story from the actual numbers.
On the operating side, True North reported portfolio occupancy of 94.5% at the end of the third quarter (Q3) of 2025. It also reported leasing activity of 506,000 square feet in the quarter. The spread was not ideal, yet it shows the REIT is still transacting leases and keeping space filled. In office real estate, survival is often about staying active and staying realistic.
The details underline both the progress and the pressure. Renewals represented 279,000 square feet, while new leasing was 227,000 square feet. The REIT also sold three properties for $20.5 million. Disposals can be a smart reset when buyers will pay a reasonable price, and the proceeds help reduce risk. Still, negative spreads are a reminder that office landlords cannot assume easy rent growth.
Balance sheet management is where many REIT stories turn, for better or worse. True North reported mortgage principal repayments of $11.7 million in the quarter and a debt-to-total assets ratio of 55.2%. It also highlighted unsecured debentures of $290 million and $400 million, with a weighted average term to maturity of five years and a weighted average interest rate of 4.71%. That is the kind of detail income investors should care about, because refinancing risk is what can turn a steady landlord into a stressed borrower when lenders get picky.