I
nvesting in real estate can be a reliable way to build wealth, but buying individual properties often requires significant capital and effort. Canadian real estate investment trusts (REITs) offer an alternative solution – providing exposure to real estate with flexibility, liquidity, and potential for growth.

    Canadian REITs allow investors to invest in a diversified portfolio of real estate without the need for large upfront costs. They trade like stocks, offering liquidity and making it easy to buy or sell shares during market hours. Many Canadian REITs also distribute monthly cash distributions, providing consistent income for investors.

    The recent interest rate cuts from the Bank of Canada have made REITs even more appealing. Lower interest rates can help improve a REIT's financial health by reducing borrowing costs and lowering interest expenses. With reduced interest expenses, Canadian REITs can expect improved cash flow.

    Granite REIT (TSX:GRT.UN) is an attractive option for investors looking to capitalize on the e-commerce boom. Its diversified portfolio of industrial properties should benefit from growing online shopping trends. The REIT offers a solid 4.3% monthly cash distribution yield and has decreased its reliance on Magna, its largest tenant.

    Analysts predict Granite REIT's stock could appreciate by 17% over the next year, making it an excellent choice for both income and growth potential. For those seeking a more conservative option, Canadian Apartment REIT (TSX:CAR.UN), or CAPREIT, is a top contender. With an impressive occupancy rate of around 98%, CAPREIT can weather economic fluctuations with minimal setbacks, making it a logical choice for risk-averse investors.