Private REIT Doing Well
April 21, 2009 - Press Release
There’s been a lot of talk about real estate in recent months. From the sub prime melt down to unrest in the financial markets, real estate seems to be at the center of most discussions. So does this mean real estate is a bad investment? “Not in all cases, certainly not the private REIT market,” says Jason Castellan, CEO of Guelph-based Skyline Apartment REIT.
Despite recent economic turmoil, REITs have shown remarkable stability. A December 2008 article in the Globe and Mail’s Report on Business points out, “Apartment REITs are considered to be an especially conservative type of REIT because demand for rental housing is more recession-resistant than other types of property.”
While publicly traded REITs have seen their unit prices battered in the markets, private apartment REITs have faired much better simply because the emotions in the marketplace have been removed. Even in the current economy, private apartment REIT unit holders are enjoying modest growth as well as stable and predictable monthly distributions. “The truth is our unit price is established by factual data, not the fear or uncertainty that exists in public markets,” says Castellan. “It’s not as if our vacancy rate climbed over night because the markets started falling. It’s just not how the apartment industry works.”
The fact is there has never been a better time to invest in the stability of multi-unit residential real estate in Canada. As lending markets tighten in the short-term, the move from rental to new home ownership will be substantially slowed. This in turn will continue to drive down vacancy rates, which are already good to begin with, to levels not seen in the last 7 or 8 years. Lower vacancy rates are helping improve the REITs bottom line creating strong returns back to investors.
Private REITs rely solely on raising their capital one investor at a time. While it can be a more tedious road to travel, Castellan says he prefers it that way as he feels it keeps the company as connected as possible to each and every investor. Like any private company, if it’s doing well and providing strong returns for its investors, raising new capital is generally easy to do. Castellan adds, “We’ve done exceptionally well since becoming a Private REIT and our investors have rewarded us accordingly by referring others. It’s humbling to me when people refer our REIT to others and in turn we take that trust they place in us very seriously as we rely on those referrals to continue to grow.”
About Skyline Apartment REIT
Skyline Apartment REIT (the “REIT”) is a privately owned and managed portfolio of primarily multi-residential properties, focused on acquiring both established and newly developed properties in secondary and tertiary communities across Canada.
Skyline Apartment REIT is distributed as an alternative investment product through Skyline Wealth Management Inc. (“Skyline Wealth”), the exclusive Exempt Market Dealer for the REIT.
Skyline Apartment REIT is committed to providing best in class apartment suites and service to its residential tenants, while surfacing value with a goal to deliver stable returns to its investors.
To learn more about Skyline Apartment REIT and other alternative investment products offered through Skyline Wealth, please visit SkylineWealth.ca.
Skyline Apartment REIT is operated and managed by Skyline Group of Companies.
For media inquiries, please contact:Jeff Stirling
Vice President, Corporate Marketing & Communications, Skyline Group of Companies
5 Douglas Street, Suite 301
Guelph, ON N1H 2S8
Property Biz Canada: Deferred Capital Expenditures Impediment to Multi-Residential Deals
September 9, 2011Property Biz Canada (Sept 2011) - Paul Brent from Property...
Canadian Real Estate Magazine: Investing in REITs
January 19, 2010Article Published in Canadian Real Estate Magazine,...
Skyline Apartment REIT buys third Mascouche property
July 28, 2021[Guelph, ON – July 28, 2021] On July 28, 2021,...