Monthly Dividend Stock In Focus: Automotive Properties REIT

Published on January 12th, 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: Automotive Properties REIT

Automotive Properties REIT (APPTF) is a monthly dividend stock based in Canada. This potentially makes the stock more attractive for income investors looking for more frequent dividend payouts.

This article will analyze Automotive Properties REIT in greater detail.

Business Overview

Automotive Properties REIT is a specialized Canadian net-lease REIT focused exclusively on automotive dealership and service-center real estate.

Its portfolio spans roughly 90 properties across major Canadian metros, leased primarily on long-term triple-net contracts to leading dealer groups.

The REIT’s anchor tenant is Dilawri Group, Canada’s largest automotive retailer, which contributes over half of the REIT’s annual base rent (53.5%) and holds an approximate 31% ownership stake in the REIT.

Alongside Dilawri, other major tenants include AutoCanada and Go Auto. The portfolio is 100% occupied. Also, the REIT pays dividends on a monthly basis. Last year it recorded $65.3 million in revenues.

The company reports its financials in CAD. All figures in this report have been converted to USD unless otherwise noted.

On November 13th, 2025, Automotive Properties REIT reported its Q3 results for the period ended September 30th, 2025.

Property revenue was about $18.0, up 8% year over year, driven by recent acquisitions and contractual rent increases, partly offset by lost rent from the sale of the Kennedy Lands.

Cash NOI was about $14.9 million, also up solidly versus last year, as the REIT continued to benefit from a fully leased portfolio of 91 income-producing properties and the late quarter acquisitions of seven automotive properties.

Acquisitions include a Rivian-tenanted site in Orlando and a six-asset portfolio in Île-Perrot, Québec. FFO was about $9.2 million, or $0.19 per unit, up 8% year-over-year. For the year, we expect FFO/unit of $0.72.

Growth Prospects

Automotive Properties REIT’s FFO per unit has remained remarkably stable over the past decade because the REIT’s long-term, triple-net leases produce predictable rental income with minimal operating cost exposure.

Still, after its IPO, in 2015, FFO/unit has failed to grow. While incremental acquisitions continued to lift total FFO during this period, these gains were offset by equity issuance-driven dilution.

Automotive Properties REIT benefits from a highly stable cash-flow profile backed by long-term, triple-net leases, strong tenant covenants, and essential-service automotive dealerships that remain resilient across economic cycles.

The REIT’s quality is anchored by its relationship with Dilawri Group, Canada’s largest dealer network, which involves a significant share of rental income and strategic alignment as a major unitholder.

This is the only publicly traded consolidator of automotive retail real estate in Canada, giving it scale, relationships with tenants, and underwriting expertise that are difficult for new entrants to replicate.

This niche focus, along with high occupancy and durable land value, provides meaningful recession resilience and reliable cash distributions.

Moving forward we expect no growth in FFO-per-unit. The acquisition strategy continues to rely heavily on equity issuance, causing ongoing dilution that offsets incremental rental income.

Meanwhile, higher interest costs and modest rent escalations offer limited ability to expand per-unit profitability in a mature, fully leased portfolio.

Also, we believe that the fact that the REIT’s largest tenant is also a major shareholder, there could be some conflict of interest regarding rental rate hikes.

Dividend & Valuation Analysis

The company has paid a monthly dividend that remained stable at C$0.067 per month from the IPO in 2015 to July of 2025.

The REIT hiked its dividend for the first time this past August, which now stands at C$0.0685 per month. We believe the dividend can grow at a CAGR of 2% over the medium term, especially if rates decline, but remain skeptical overall.

Automotive Properties has been public since 2015 but has traded in the OTC market only since 2023. The stock’s price-to-FFO multiple has hovered in the low teens since.

Today, the REIT trades at 11.5x our expected FFO-per-unit for the year. Still, due to the lack of projected growth we believe that a lower P/FFO of 10 would be more appropriate.

A declining P/FFO multiple could reduce annual returns by 2.8% per year. Including the 7.1% dividend yield and 0% annual expected FFO-per-share growth, total returns are expected at 4.3% per year.