How 5 REITs Fared in the Second Quarter

It was another bustling quarter for Canada’s REITS, which are in the midst of releasing Q2 reports. Here’s a look at how five of them performed.

1. InnVest REIT

Highlights: Gross operating profit growth of 18.3% versus Q2 last year, to $46.1M, largely the result of acquiring the Hyatt Vancouver. Funds from operations were $29.4M.

Portfolio: 109 hotels nationwide, with a 50% interest in Choice Hotels Canada. Since 2014 the REIT has sold 21 low-cash-flow-yielding hotels and renovated 58 of its Comfort Inn hotels.

Big deal: In July acquired a 33% interest in the Courtyard by Marriott, Toronto, a 575-room hotel with two restaurants and 4,600 SF of retail. InnVest is paying $33M for its stake; KingSett Real Estate Growth took the remaining 67% interest.

2. Crombie REIT

Highlights: Adjusted funds from operations increased 13% to $32.7M versus Q2 last year. Renewals on 380k SF of expiring leases.

Portfolio: Nova Scotia-based REIT owns 255 retail and office properties across Canada (17.4M SF), including the 395k SF mixed-use Aberdeen Business Centre in its hometown of New Glasgow, NS (above).

Big deal: Is working with Vancouver-based Westbank Projects Corp to develop a building on Davie Street with 340 residential rental units and retail space. Also acquired two additions to existing retail properties, totaling 58.5k SF.

3. Agellan Commercial REIT

Highlights: AFFO of $5.06M, down slightly from last year. Growth came as a result of occupancy gains from the REIT's US assets, helped by a strengthening US dollar.

Portfolio: 32 properties in the US and Canada, including 243, 245, 251 and 255 Consumers Rd in Toronto, aka Parkway Place, four interconnected office buildings with 812k SF GLA — the trust’s single largest asset.

Big deal: In July the REIT acquired 1800 Sandy Plains Pkwy for US$11M. It's a multi-tenant property in Atlanta with three buildings and 167k SF GLA and four acres of vacant land for future development.

4. RioCan REIT

Highlights: FFO of $136M, up 6.9% from Q2 2014. Renewed 1.1M SF. Committed occupancy declined to 93.9% due to Target Canada disclaiming 18 leases.

Portfolio: Canada’s largest REIT with a total enterprise value of $16B. Owns and manages nation’s largest shopping centre portfolio, with interests in 353 retail properties, including Yonge and Eglinton Centre, undergoing a $45M overhaul.

Big deals: RioCan and HBC closed the first tranche of a JV focused on real estate growth opportunities. It also got zoning approval for redevelopment of Yonge Sheppard Centre, a JV with KingSett Capital Partners.

5. H&R REIT

Highlights: Funds from operations of $142.8M, up 4% compared to the same period last year. The REIT has sold properties for approximately $1.3B over the last 18 months.

Portfolio: Canada’s largest diversified REIT, with total assets of $13.6B and ownership interests in 46M SF of office, retail, industrial and residential properties, including 69 Yonge St (seen above).

Big deals: Sold to CrestPSP a 49.5% interest in 16 US properties (for US$150.5M), and a 50% stake in a Canadian industrial property ($51.5M). This follows the 2014 sale to CrestPSP of a 50% interest in 84 industrial properties.

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