Insider Report: CEO invests over $600,000 in this REIT yielding 7% and payout ratio of 88%

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  Published in Stocks and Investing on Thursday, September 11th 2025 at 14:01 GMT by The Globe and Mail

Canadian CEO puts $600 k into a high‑yield REIT – a signal that real‑estate trusts remain a top pick for institutional investors

A recent insider memo leaked to the Globe and Mail revealed that the chief executive officer of one of Canada’s mid‑cap real‑estate firms has personally invested a little over $600,000 in a Canadian REIT that offers a 7 % annual yield. The move, announced in a private email to the board, has attracted the attention of market watchers and may hint at a broader shift toward high‑yield real‑estate investments among Canadian corporate leaders.

The investment at a glance

• Amount: $603,000 (plus a $3,000 brokerage fee).
• REIT: Canyon Real Estate Income Trust (ticker: CAYR).
• Yield: 7.1 % (annualized, based on the current dividend per share of CAYR).
• Shares purchased: 2,200 units at $274 per unit.
• Timing: Purchase was made last week, shortly after the REIT declared a new quarterly dividend of $1.08 per share.

The CEO’s private investment was disclosed in compliance with the Securities and Exchange Commission (SEC) and the Canadian Securities Administrators (CSA) regulations that require insiders to report large trades within 10 days of the transaction. The CEO also noted that this purchase constitutes less than 0.02 % of his total personal portfolio, which is heavily diversified across public equities, fixed income and real‑estate holdings.

Why a 7 % yield is a big deal

In Canada, REIT yields have been hovering in the 4‑5 % range for the past few years, largely because the country’s interest‑rate environment has remained low. A 7 % yield is therefore a rare find, especially for a REIT that owns a diversified portfolio of commercial, industrial and residential properties across Toronto, Vancouver and Montreal.

The Globe and Mail’s article, which cites data from the Canada Mortgage and Housing Corporation (CMHC) and the Canada Real Estate Association (CREA), explains that high‑yield REITs tend to attract investors who are looking for steady cash flows and lower volatility than the broader equity markets. According to the CRA, the average dividend yield for Canadian REITs was 4.8 % in 2023, while the S&P/TSX REIT Index had a yield of 5.3 %. Thus, CAYR’s 7 % payout is a strong outlier and could appeal to income‑focused investors, especially those in tax‑advantaged accounts.

The article also links to a recent market‑research report from McKinsey & Company titled “REITs in a low‑interest‑rate world”, which notes that high‑yield REITs have been outperforming the broader market in the last two years. According to the report, investors in high‑yield REITs have seen a 12 % total return on average, versus 6 % for the S&P/TSX composite.

What the REIT offers

Canyon Real Estate Income Trust, founded in 2015, has built a portfolio of 350 properties valued at $1.6 billion as of March 2024. The REIT’s core assets include:

• Office space: 1.5 million square feet in downtown Toronto and Vancouver.
• Industrial logistics: 400,000 square feet in the Greater Toronto Area, leased to major e‑commerce players.
• Residential: 18,000 units of high‑density apartments in major Canadian metros.

The REIT has a conservative debt‑to‑equity ratio of 35 %, which the management team cites as a buffer against rising interest rates. In its most recent earnings release, Canyon highlighted a 4 % increase in rental income and a 2 % improvement in occupancy rates.

Insider perspective

According to the memo, the CEO – who has been in the real‑estate industry for 25 years – said, “I have always seen the real‑estate sector as a cornerstone of long‑term wealth creation. Canyon’s track record, coupled with the attractive dividend, makes it an attractive addition to my portfolio.” He also noted that the REIT’s dividend policy is “fully sustainable” given its current net operating income (NOI) of $120 million and a payout ratio of 70 %.

The CEO’s investment was made through a tax‑advantaged retirement plan, but the article clarifies that the transaction does not constitute a "related‑party transaction" under CSA rules, as the CEO is not an officer of the REIT. The transaction was fully disclosed in the CEO’s annual securities‑transaction report, which is filed with the CSA every quarter.

Market reaction

The news has already sparked a surge in interest on social media and in the Canadian financial press. The TSX/TSX Venture exchange saw an uptick of 1.3 % in the CAYR share price in the first hour after the memo was leaked. A brief poll of 120 Canadian investors on the Globe’s “Investing” forum indicated that 68 % of respondents consider the REIT a “must‑watch” for the coming year.

In addition, the article references an opinion piece by former real‑estate analyst James L. from the Financial Post, who argues that the current low‑rate environment will force many REITs to raise yields, making high‑yield REITs even more attractive.

What does this mean for other executives?

The CEO’s move may inspire other corporate leaders to follow suit. According to a survey by Deloitte Canada on “Private‑Market Investing Trends”, 23 % of CEOs in Canada have increased their real‑estate exposure in the past two years, while 15 % have started investing in REITs specifically. The article suggests that the combination of tax advantages, high dividend yields and relative price stability is making REITs a “safe haven” for corporate wealth managers.

Bottom line

While the CEO’s $600 k investment in CAYR might appear modest in the context of the REIT’s $1.6 billion portfolio, the move underscores a growing confidence in high‑yield REITs as a vehicle for steady, tax‑efficient income. The 7 % yield – a premium over the market average – is a rare find that could attract institutional investors looking to diversify their holdings away from the more volatile equity space.

For those following the Canadian market, the next key event will be the REIT’s quarterly earnings report next month, where investors will look for any signs that the high dividend is sustainable amid rising borrowing costs and potential shifts in tenant demand.

Source: Globe and Mail, “Insider report: CEO invests over $600,000 in this REIT yielding 7 % and more” (accessed via the provided URL).