Investing in real estate to generate passive income can be an excellent way to boost your monthly revenues through rental income. However, purchasing investment properties requires a significant upfront cash outlay. Investing in real estate investment trusts (REITs), however, can provide you with the opportunity to earn monthly returns without the massive cash outlay.

High-quality REITs offer monthly distributions like some dividend stocks, trading on the stock market. REITs are generally defensive assets to hold, making them ideal for passive income-seeking investors.

If you are a Canadian investor looking to increase your passive income through some of the top REITs, here are two top REITs you can consider.

Granite REIT

Granite REIT (TSX:GRT.UN) is a trust that invests in a portfolio of industrial real estate assets. The REIT has grown rapidly for several years, benefitting from the rising demand for warehouse space amid the e-commerce industry’s boom. The REIT boasts a high-quality tenant base and an impressive 99% occupancy rate that ensures significant revenues for the trust.

At writing, Granite REIT trades for $99.13 per share, and it boasts a 3.09% dividend yield. The fund also boasts a 10-year dividend growth streak. Investing $37,000 in Granite REIT would provide you with $1,143.3 per year through its monthly distributions, translating to $3.13 per day.

CT REIT

CT REIT (TSX:CRT.UN) is a trust you could consider if you value dividend growth as a part of your investment strategy. It is another Canadian Dividend Aristocrat that boasts an attractive dividend yield and a solid track record for raising its distributions each year. CT REIT is a retail-focused trust that is primarily owned by Canadian Tire. The trust receives 90% of its income from Canadian Tire and its subsidiaries, making it a strong income-generating asset to consider.

At writing, CT REIT trades for $17.06 per share, and it boasts a 4.96% dividend yield. Investing $36,000 in CT REIT would provide you with $1,785.6 per year through its monthly distributions, translating to $4.89 per day.

Foolish takeaway

Investing in REITs to generate a significant passive income does require investing a decent amount of money, but it is nowhere near how much you would need to acquire investment properties. Additionally, you can earn income like a lazy landlord through REITs because you would not have to worry about the hassle and expenses that come with managing properties.

If you invest $37,000 in Granite REIT and $36,000 in CT REIT, you can earn $8.02 per day through monthly distributions alone. However, this is a hypothetical scenario. I would not recommend investing such a substantial amount in just two securities. Consider diversifying your investment capital across several reliable income-generating assets that offer similar dividend yields to generate safer returns.

The post Earn $8/Day in Passive Income With These 2 REITs appeared first on The Motley Fool Canada.

More reading

• Passive Income: 3 of the Best REITs for Dividend Investors
• Passive Income: 3 Reliable Dividend Stocks to Own Forever
• Value vs. Return Potential: 3 Stocks for the Right Balance
• 5 Canadian Dividend Stocks With Yields of 4% or More
• The 3 Best Passive-Income Stocks to Buy and Hold in 2022

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends GRANITE REAL ESTATE INVESTMENT TRUST.