{"id":15680,"date":"2014-05-19T22:26:46","date_gmt":"2014-05-20T02:26:46","guid":{"rendered":"http:\/\/traceyarial.com\/blog\/?p=15680"},"modified":"2014-04-11T22:39:37","modified_gmt":"2014-04-12T02:39:37","slug":"canadian-reits-due-recover","status":"publish","type":"post","link":"https:\/\/traceyarial.com\/blog\/en\/canadian-reits-due-recover\/","title":{"rendered":"Canadian REITs Due to Recover"},"content":{"rendered":"<p>Real Estate Investment Trusts should recover some of their capital in the second half of 2014 as investors realize current market prices account for rising interest rates. So says a banker from the only Canadian company that led a REIT purchase deal in the early part of 2014.<\/p>\n<blockquote><p>Recovery in the U.S. is taking time and bond yields have actually come back a bit, which is good news for the REIT,\u201d says Justin Bosa, Canaccord Genuity\u2019s investment banking managing director. \u201cThe space currently trades at a fairly attractive valuation.\u201d<\/p><\/blockquote>\n<p>At the same time, the market remains volatile and many Canadian REITS experienced significant market losses last year. Some are considering copying the operating model used by REITS in the United States.<\/p>\n<blockquote><p>If one were to look at the U.S. model, one would see that REITS typically have lower leverage points, lower payout ratios and they produce effectively a lower yield,\u201d says Bosa. \u201cThey have a lot of excess cash that they can redeploy into their portfolio and try and increase yields or cash flow.\u201d<\/p><\/blockquote>\n<p>According to Bosa, Canadian REITS that want to emulate the U.S. model face a two-fold challenge. They themselves are younger and less-developed than their American cousins. They also compete in very different market conditions.<\/p>\n<blockquote><p>The U.S. is such a large and liquid market, U.S. REITS ultimately have a different investment base,\u201d he says. \u201cTheir investors are pension funds, endowment funds and institutional funds that are longer-term thinking. Canada is a more retail-driven market that wants higher yields now.\u201d<\/p><\/blockquote>\n<p>Note: This article appears on page 58 of the\u00a0<a href=\"http:\/\/issuu.com\/realestateforums\/docs\/__ref_spring_2014_final\" target=\"_blank\">Spring 2014\u00a0<\/a>issue of Canadian Real Estate Magazine.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Real Estate Investment Trusts should recover some of their capital in the second half of 2014 as investors realize current market prices account for rising interest rates. So says a banker from the only Canadian company that led a REIT purchase deal in the early part of 2014. Recovery in the U.S. is taking time [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_wp_convertkit_post_meta":{"form":"-1","landing_page":"0","tag":"0","restrict_content":"0"},"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_hide_featured_image":false,"_jetpack_featured_image_duplicate_dismissed":0,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[30],"tags":[306,305,307,304],"class_list":["post-15680","post","type-post","status-publish","format-standard","hentry","category-canada","tag-canaccord-genuity","tag-capital","tag-justin-bosa","tag-real-estate-investment-trusts","post-wrapper","thrv_wrapper"],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p2buQs-44U","jetpack-related-posts":[{"id":1864,"url":"https:\/\/traceyarial.com\/blog\/en\/midmarket-canada-investment\/","url_meta":{"origin":15680,"position":0},"title":"Midmarket Acquisitions Offer Stable, Balanced Growth","author":"Tracey Arial","date":"November 29, 2012","format":false,"excerpt":"The top five midmarket cities in Atlantic Canada show growth rates above the national average, says Don Clow, president and CEO of Crombie REIT, the company that owns St. John\u2019s largest shopping centre and other commercial properties across Canada. Atlantic Canada mid-markets also tend to be low risk, he says.\u2026","rel":"","context":"In &quot;Canada&quot;","block_context":{"text":"Canada","link":"https:\/\/traceyarial.com\/blog\/en\/category\/canada\/"},"img":{"alt_text":"ClowHeadshot","src":"https:\/\/i0.wp.com\/traceyarial.com\/blog\/wp-content\/uploads\/DonClow.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":1999,"url":"https:\/\/traceyarial.com\/blog\/en\/legends-calgary-real-estate\/","url_meta":{"origin":15680,"position":1},"title":"Legendary Success in Real Estate Investment","author":"Tracey Arial","date":"October 30, 2012","format":false,"excerpt":"Real Estate Experience Helps When Negotiating Trends, Risks and Opportunities in Calgary What does it take to build success over time in the Calgary market? Great real estate investment is all driven by risk assessment,\u201d says Jon Love, a managing partner with KingSett Capital and former head of Oxford Properties\u2026","rel":"","context":"In &quot;Canada&quot;","block_context":{"text":"Canada","link":"https:\/\/traceyarial.com\/blog\/en\/category\/canada\/"},"img":{"alt_text":"Love headshot","src":"https:\/\/i0.wp.com\/traceyarial.com\/blog\/wp-content\/uploads\/jonlove.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":15675,"url":"https:\/\/traceyarial.com\/blog\/en\/commercial_real-estate\/","url_meta":{"origin":15680,"position":2},"title":"Canadian Commerical Real Estate Mostly Healthy","author":"Tracey Arial","date":"May 12, 2014","format":false,"excerpt":"Other than potential saturations in the office markets in Toronto, Edmonton and perhaps Montreal, the fundamentals for commercial real estate in Canada are strong. So says Michael Dal Bello, an investment partner at Pritzker Group Private Capital. The fundamentals are very good in Edmonton, in terms of industrial, retail, and\u2026","rel":"","context":"In &quot;Canada&quot;","block_context":{"text":"Canada","link":"https:\/\/traceyarial.com\/blog\/en\/category\/canada\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1874,"url":"https:\/\/traceyarial.com\/blog\/en\/olympicvillage\/","url_meta":{"origin":15680,"position":3},"title":"Olympic Village Purchase Demonstrates High Performing Asset Class","author":"Tracey Arial","date":"November 29, 2012","format":false,"excerpt":"Trading at record low cap rates means stability and income stream predictability When Canadian\u00a0Apartment Properties Real Estate Investment Trust (CAPREIT) finalized their purchase of the 980-apartment Olympic Village in Montreal on November 1, 2012, the company achieved their goal to become more geographically-diversified across Canada, while ensuring stable, predictable rental\u2026","rel":"","context":"In &quot;Hundred Mile Circle&quot;","block_context":{"text":"Hundred Mile Circle","link":"https:\/\/traceyarial.com\/blog\/en\/category\/canada\/hundredmilecircle\/"},"img":{"alt_text":"Olympic Village","src":"https:\/\/i0.wp.com\/traceyarial.com\/blog\/wp-content\/uploads\/OlympicVillage.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":15618,"url":"https:\/\/traceyarial.com\/blog\/en\/montreals-diverse-economy\/","url_meta":{"origin":15680,"position":4},"title":"Montreal\u2019s Diverse Economy Appeals to Investors","author":"Tracey Arial","date":"April 21, 2014","format":false,"excerpt":"Montreal\u2019s size appeals to pension funds that have seen their real estate allocations going up, says Armand Des Rosiers, one of Montreal\u2019s key real estate experts. People understand that Montreal, being the second largest metropolitan area in the country, is a large market,\u201d says Des Rosier, who directs RBC Capital\u2026","rel":"","context":"In &quot;Island Report&quot;","block_context":{"text":"Island Report","link":"https:\/\/traceyarial.com\/blog\/en\/category\/canada\/island-report\/"},"img":{"alt_text":"download","src":"https:\/\/i0.wp.com\/traceyarial.com\/blog\/wp-content\/uploads\/download.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":1841,"url":"https:\/\/traceyarial.com\/blog\/en\/latin-america-opportunities\/","url_meta":{"origin":15680,"position":5},"title":"Latin American Opportunities","author":"Tracey Arial","date":"November 29, 2012","format":false,"excerpt":"Forward-looking investors like the financial resilience and increasing transparency of markets in Latin\u00a0America. Canadian investments like the big pension plans are starting to look back at Mexico as an attractive proposition given the stability it showed throughout the recent financial crisis,\u201d Eduardo G\u00fc\u00e9mez \u201cThere are still growth opportunities in Brazil\u2026","rel":"","context":"In &quot;International&quot;","block_context":{"text":"International","link":"https:\/\/traceyarial.com\/blog\/en\/category\/international\/"},"img":{"alt_text":"G\u00fc\u00e9mez","src":"https:\/\/i0.wp.com\/traceyarial.com\/blog\/wp-content\/uploads\/G%C3%BC%C3%A9mez.jpg?resize=350%2C200","width":350,"height":200},"classes":[]}],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/traceyarial.com\/blog\/wp-json\/wp\/v2\/posts\/15680","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/traceyarial.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/traceyarial.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/traceyarial.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/traceyarial.com\/blog\/wp-json\/wp\/v2\/comments?post=15680"}],"version-history":[{"count":3,"href":"https:\/\/traceyarial.com\/blog\/wp-json\/wp\/v2\/posts\/15680\/revisions"}],"predecessor-version":[{"id":15683,"href":"https:\/\/traceyarial.com\/blog\/wp-json\/wp\/v2\/posts\/15680\/revisions\/15683"}],"wp:attachment":[{"href":"https:\/\/traceyarial.com\/blog\/wp-json\/wp\/v2\/media?parent=15680"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/traceyarial.com\/blog\/wp-json\/wp\/v2\/categories?post=15680"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/traceyarial.com\/blog\/wp-json\/wp\/v2\/tags?post=15680"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}