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How 5 Canadian REITs Fared in Q3

Toronto State of Market

Love the smell of earnings reports in the afternoon? Then you’re in luck. Here’s a tasty sampling of how five Canadian real estate investment trusts performed in the last quarter.

1. Choice Properties REIT


Highlights: Adjusted funds from operations was $79M in Q3, an 8.6% increase from Q3 2014, driven by income from acquisitions (including two Shoppers Drug Mart stores).

Portfolio: 515 properties, mostly supermarket- and drug store-anchored malls and stand-alone supermarkets and drug stores. Principal tenant / largest unit holder is Loblaw Cos Ltd.

Big deal: Launched West Blocka JV with Wittington Properties involving redeveloping the Groceterias building into the cornerstone of a community with 245k SF of Loblaws-anchored commercial real estate and two res towers.

2. Summit Industrial Income REIT


Highlights: AFFO of $3.6M, up from $2.8M in Q3 2014, an increase the trust attributes to 11 acquisitions in Ontario and Quebec over the past year.

Portfolio: 45 properties across five provinces, primarily concentrated in Ontario and Quebec, including Toronto's 21 Finchdene Sq (above).

Big deal: Bought a 184k SF multi-tenant industrial property at 2333 North Sheridan Way in Mississauga for $14.5M. Building is 100% occupied.

3. Slate Retail REIT


Highlights: AFFO of $8.83M for the third quarter, up 94% from the same period last year, when the trust launched. Had 197k SF in renewals; 23k SF in new leases.

Portfolio: 64 properties (versus 29 when it listed on the TSX in April 2014) across 20 states, with over 600 distinct tenants and 94.7% occupancy.

Big deals: Acquired five grocery-anchored shopping centres in South Carolina (including Little River Pavilion, above), Colorado, Georgia and Florida.



Highlights: AFFO of $38.5M, up 14.5% from Q3 2014, attributable to 28k SF of property additions completed in the third quarter.

Portfolio: 275 properties (20M SF GLA), primarily retail, located across the country. Canadian Tire Corp is CT REIT's most significant tenant.

Big deal: Completed a development investment in Swift Current, SK (22.5k SF property with Mark’s and Sport Chek), and an intensification project, the expansion of a Canadian Tire in Saskatoon, at a cost of $6.1M.

5. Morguard REIT


Highlights: AFFO of $25.5M, a 0.7% increase from the same period last year. NOI in the trust’s retail portfolio took a $1M hit as a result of the departure of Target Canada.

Portfolio: 50 retail, office and mixed-use properties in six provinces, with 8.8M SF of leasable space and a book value of $2.9B. Includes 200 Yorkland Blvd, above, an 11-storey, 151k SF North York office tower.

Big deal: The REIT has made no acquisitions so far in 2015. But in Q3 the firm refinanced 111 Dunsmuir St, a 13-storey tower in Vancouver, and completed its revamp of Ottawa’s St. Laurent Centre.