How 4 Western Canadian REITs Performed in Q3
The results are in, and Western Canada's real estate investment trusts had a profitable third quarter. Here’s a look at how four of them fared.
1. Pure Multi-Family REIT
Highlights: Adjusted funds from operations (AFFO) of $12.7M for the Vancouver-based REIT, up from $9.2M in Q3 2014, a 38% increase.
Portfolio: 15 investment properties (4,701 residential units) in Dallas-Fort Worth, Houston, San Antonio and Phoenix.
Big deals: Through its US REIT, Pure acquired Amalfi Stonebriar in Frisco, TX, for $67.5M, and Brackenridge at Midtown, a multifamily apartment community in San Antonio (above) for $51M.
2. American Hotel Income Properties REIT
Highlights: AFFO up 61% vs. same period last year to $7.9M, reflecting the addition of 31 hotels and 2,800 guestrooms.
Portfolio: AHIP’s Rail Hotel segment, serving the US freight railway industry, includes 43 hotels and 27 Penny’s Diner restaurants. Its Branded Hotel segment includes 35 hotels (Marriott, IHG and Hilton brands)
Big deals: Vancouver REIT acquired three Marriott-branded, select-service hotels in Ocala, FL, for $30.8M. Partnering with SunOne Developments on a 2.8M, 24-room expansion to Oak Tree Inn hotel in Glendive, MT (above).
3. Boardwalk REIT
Highlights: AFFO of $43.3M, up 1.4% from Q3 2014. Increase tempered by higher vacancy and lower rents in Fort McMurray and Grande Prairie, and higher operating expenses in Saskatchewan and Quebec.
Portfolio: Owns and operates 200 communities with 32k residential units (28M net rentable square feet) in Alberta, Saskatchewan, Ontario and Quebec.
Big deal: The Calgary REIT closed on the sale of its Windsor portfolio—1,685 townhouse and apartment units, including at Buckingham Tower (above)—to Skyline Apartment REIT for $136.2M, or $80,800 per unit.
4. Artis REIT
Highlights: Winnipeg-based firm’s AFFO was up 12.1% in the third quarter, to $47.2M, versus the same period last year.
Portfolio: Commercial properties (50% office, 25.6% retail, 24% industrial) comprising 26.2M SF of GLA, with a major focus on Western Canada.
Big deal: Acquired a 75% stake in Graham Portfolio for $74M; consists of eight properties in BC, Alberta and Saskatchewan, including 875 57th St E in Saskatoon (above), with 19.2 acres of land for future development.