Investing in a Multi Family Reit Canada can be beneficial if you are looking to diversify your investments. It offers investors the security of knowing that their money is being invested in a company with a proven track record. This can be a great way to protect yourself from the risks associated with investing in the stock market. However, if you are looking to invest in a REIT, there are many factors to consider. Here are some things to keep in mind.
Among the largest publicly traded real estate investment trusts (REITs) in Canada, H&R REIT Multi Family Reit Canada (TSX: H&R) owns a diverse portfolio of high-quality real estate assets. The portfolio comprises a mixture of residential, retail, industrial and office properties across Canada and the United States.
The properties in H&R’s portfolio include more than 20 residential properties and four commercial properties. The properties are subject to varying degrees of risk, including local market conditions such as reduced demand for real estate in a particular location, oversupply of space, and local market conditions affecting tenant turnover.
At December 31, 2020, H&R had total assets of approximately C$10.7 billion. It had an aggregate fair market value of C$219.1 million. The REIT had a proportionate share of debt to total assets of 46.6%, compared to a share debt to total assets ratio of 3.7% at December 31, 2021.
H&R REIT issued $300.0 million principal amount of 2.633% Series S Senior Debentures maturing February 19, 2027. The debt has a four-year term and bears interest at a rate of 4.0% per year for the first year and 5.0% per year for the remaining years. The credit facilities were renegotiated in December 2021.
At December 31, 2021, H&R had a cash on hand of $124.1 million. It had $952.4 million available under unused lines of credit. H&R also had three revolving unsecured facilities totalling $650.0 million that had been cancelled. The dispositions for these properties have been translated into Canadian dollars at the time of sale.
H&R’s portfolio contains more than 20 residential properties and three commercial properties in Canada and the United States. The properties in H&R’s portfolio range in size from 500 square feet to over 33 million square feet. The REIT’s portfolio has a sizable office allocation.
Choosing the right Canadian REIT depends on the investor’s goals. There are several criteria that can be used to assess the quality of a REIT, including portfolio diversification, lease length, locations, debt, and income growth potential.
The CT Real Estate Investment Trust is a commercial REIT that invests in retail properties across Canada. Its portfolio consists of distribution centres, retail properties, and other mixed-use commercial property. Its main tenant is Canadian Tire Corporation. Canadian Tire is a national store that specializes in automotive products, leisure products, and DIY products. The majority of CT REIT’s properties are located in Ontario, Quebec, and Western Canada.
CT REIT is one of Canada’s largest REITs, with a market capitalization of $4 billion. It has a portfolio of 350 retail properties. The majority of its properties are located in high traffic routes and desirable retail locations.
The properties in CT REIT’s portfolio are subject to long-term leases that support annual rental growth. The properties are located in major urban markets. These properties are attractively priced and provide tax-efficient cash distributions.
CT REIT’s primary tenant, Canadian Tire Corporation, is a strong investment grade tenant. The relationship with CTC allows CT REIT to benefit from the chain’s network of retail properties. This relationship also provides insight into opportunities for real estate acquisitions and long-term leases.
CT REIT has a strong balance sheet, with a robust LTV ratio. CT REIT has increased AFFO/share in each of the last nine years, and is on track to increase AFFO/share to almost C$1.10/share in 2020. AFFO/share is calculated as Adjusted Funds From Operations (AFFO) minus non-cash items. This measure is calculated in accordance with IFRS.
Plaza Retail REIT
Located in Fredericton, N.B., the Plaza Retail REIT Multi Family Reit Canada operates retail real estate ownership and development business in Canada. The REIT has an asset portfolio of 253 properties across Canada. The REIT’s property portfolio includes properties in Alberta, New Brunswick, Quebec, Ontario and Manitoba.
The REIT is redeveloping several properties to create retail space. It has already secured significant pre-leasing for several properties. The REIT’s portfolio includes a 90,000 square foot retail site in Chicoutimi. The REIT is also holding additional lands for development.
The press release on the Plaza Retail REIT Multi Family Reit includes forward-looking statements about its strategy and operations. The REIT is redeveloping several existing properties to create retail space and plans to add additional retail space. It will focus on open air retail properties.
The REIT is expected to generate significant cash flow from its properties. The REIT will use its cash flow to purchase properties. The company has already acquired interests in three properties in Ontario and Quebec. The REIT has also acquired interests in a property in Drummondville, Quebec. The REIT will be redeveloping a 90,000 square foot retail site and is planning to redevelop a 34,000 square foot vacant property.
The company’s liquidity has never been as high as it is today. The liquidity of the company is sufficient to carry out its program. Its liquidity is the biggest asset it has.
The company’s press release on the Plaza Retail REIT Multi-Family Reit Canada includes forward-looking statements about its strategy and plans. Management sees opportunities to buy and sell listed REITs and listed REOCs. The company expects to generate total proceeds of $30 million over the life of the program.
Minto Apartment REIT
During the first nine months of 2019, Minto Apartment REIT repositioned 218 units. Minto Apartment REIT, Canada’s first 100% urban residential REIT, is focused on highly dense markets. With over 80M invested in its portfolio in the last three years, Minto Apartment REIT has a strong rental rate and low price-to-funds-from-operations.
Minto Apartment REIT expects to reposition 40-50 units in the fourth quarter. The REIT’s strategic alliance agreement with Minto Group will provide a meaningful contribution to its growth pipeline. The Minto Group has been building new homes since 1955.
Minto Apartment REIT is headquartered in Ottawa, Canada, and owns 29 multi-residential rental properties in various cities across Canada. The REIT reported a 5% increase in AFFO per unit during the second quarter of 2022. In addition to the rental rate increase, Minto Apartment REIT reported a 19% revenue increase. The REIT’s AFFO payout ratio was 65% during the second quarter of 2022.
Minto Apartment REIT is well-positioned for future dividend increases. Its portfolio includes high quality apartments in dense urban areas. The REIT’s net operating income is important in determining the performance of income-producing properties. Minto REIT’s debt and equity is in good condition.
Minto Apartment REIT believes it can capitalize on the growth in immigration in Canada. It also believes it can provide healthier places to live and work. The REIT has a stable, predictable dividend policy. The Minto Group’s track record of delivering quality apartments and generating a healthy return on investment makes it a compelling long-term investment.
Minto Apartment REIT is a high quality, well-balanced REIT with a strong and attractive pipeline of properties. The REIT’s Units will be offered in each of the provinces and territories of Canada. The REIT’s management team has a long history of operating successful portfolios.
Located in Canada, CapReit Multi Family REIT Canada is an open-ended mutual fund trust that owns and operates a portfolio of multifamily residential properties. These properties vary in terms of asset type and geographic location. The majority of its assets are in the Greater Toronto and Greater Montreal regions.
Over the past 10 years, CapReit has built up a strong portfolio of quality residential rental properties. This is accompanied by strong financial management. The company is also focused on acquiring, developing and redeveloping properties. The Canadian Apartment REIT has been able to keep expenses low while generating substantial revenue. In fact, the company believes that it can generate modest rental growth.
The company’s strategy is primarily focused on improving the quality of its properties while maximizing their returns. The company is also focused on acquiring new properties that complement its existing portfolio. This has led to a major expansion in the past decade.
One of the newest members of the CapReit family is a luxury property in Kanata, Ontario, a major suburb near Ottawa. The property boasts a convenient location off of the Trans-Canada Highway and was purchased for $43.7 million. It also comes with an attractive 2.4% interest rate.
The company has a diversified strategy that includes stakes in properties in Ireland and Europe. These include stakes in 65,000 residential units. This portfolio primarily consists of apartments near public amenities. The company also owns a number of land lease communities.
The company believes that its financial management is among the best in the industry. Moreover, the company’s executives receive a modest salary and bonuses tied to their performance.
Among many other things, David A. Grantham is a contributing author to UmassExtension West Vancouver Blo. He is a renowned expert on real estate in BC.
Born in North Vancouver, Louisiana, Dr. Grantham grew up in Lower Lonsdale. He then went on to complete his business degree at the University British Columbia. As of this writing, Grantham has completed over 100 projects, including the development of a high rise building in Vancouver.
He is a husband, father, son, brother, and friend. He was a dedicated outdoorsman and enjoyed sports such as hunting, fishing, scuba diving, and snow skiing. His wife, Alison Grantham, and their two daughters survived him. He is survived by his wife Alison Martin Grantham and two daughters.