The TSX/TSXV-listed Canadian real estate stocks we’ve identified could be set to benefit from easing monetary conditions from central banks globally
SmallCapPower | January 27, 2020: As global central banks continue with monetary easing polices, real estate companies that borrow to fund acquisitions are set to benefit from lower rates. Decreasing mortgage rates will lead to lower costs of capital, and interest expense, and it is unlikely real estate companies will pass down the savings onto their tenants. Instead it is likely that they will take advantage of lower rates to fund development and acquisitions to expand their asset portfolios. The TSX/TSXV-listed Canadian real estate stocks our on list could continue to benefit from the trend of lower interest rates.
*Share price data as at January 23, 2020, data obtained from S&P Capital IQ
Fronsac Real Estate Investment Trust (TSXV:FRO.UN) – $0.65 Real Estate
Fronsac Real Estate Investment Trust is Quebec’s only management-free commercial property REIT. Through its 47 Ontario, Quebec, and Nova Scotia-based properties, Fronsac collects stable cash flows from long-term commercial leases. Originally focused on convenience stores, fast food and gas station properties, more recently it has expanded into a broader array of single/dual tenant management-free properties leased to financially-stable tenants/national retailers. On November 12, 2019, Fronsac reported Q3/19 financial results, which were highlighted by funds from operations (FFO) of $1.2M, or $0.0102/unit, an increase of 38% over Q3/18, and the Company added three properties to its portfolio during the quarter. Fronsac pays a monthly distribution of $0.00213, or $0.0255 per annum (3.9% annual yield).
Market Cap: $76.4M
YTD-Return: -1.5%
5-Year Return: +88%
30-Day Average Trading Volume: 19,570
90-Day Average Trading Volume: 18,290
ViveRE Communities Inc. (TSXV:VCOM) – $0.23 Real Estate
ViveRE is a real estate acquisition and ownership company, focused on recently built or recently refurbished, highly leased multi-residential properties in bedroom communities across Canada. The Company aims to satisfy the needs of the newly-emerging 55+ year old resident group. This demographic is changing the way residential rental apartments cater to their requirements. ViveRE believes that apartments are the next “home,” after years of owning the 55+ group is looking to the carefree lifestyle provided through renting in a community of their peers. ViveRE intends to consolidate this emerging market niche across the country. ViveRE’s existing property portfolio totalling 119 units continues to be fully leased and is performing to expectations. The Company plans to acquire in excess of 400 units in the coming 12 months. ViveRE’s most recent acquisition was 75 Emma Street in Oshawa Ontario, a newly constructed 20-unit building with a community centers, fitness rooms, and a library. The purchase price was $7.3M (5.25% cap rate), with rents projected to range from $1,850 to $2,450 per month.
Market Cap: $11.0M
YTD-Return: +0.0%
5-Year Return: +360%
30-Day Average Trading Volume: 31,670
90-Day Average Trading Volume: 25,150
Canlan Ice Sports Corp. (TSX:ICE) – $5.50 Real Estate
Canlan Ice Sports engages in the acquisition, development, lease, and operation of multi-purpose recreation and entertainment facilities in North America. The Company operates through six segments: Ice and Field Sales, Food & Beverage, Sports Store, Sponsorship, Space Rental, and Management and Consulting Services. It rents ice or field-time on a contract basis and organizes leagues and tournaments, as well as provides lessons and youth camps; operates restaurants and concession outlets; and operates sports stores that sell hockey, skating, and soccer equipment and apparel. The Company currently operates 21 facilities in Canada and the United States with 60 ice surfaces; 5 indoor soccer fields; and 15 sport, volleyball, and basketball courts. Canlan Ice Sports pays a quarterly dividend of $0.02/share (1.5% annual yield).
Urbanfund owns, develops, manages, and operates a real estate portfolio for residential and commercial properties in Canada. The Company also focuses on identifying, investing, and acquiring real estate and real estate related projects. Urbanfund assets are located in Toronto, Brampton, Belleville, Kitchener, and London, Ontario; Montreal and Quebec City, Quebec; and Dartmouth, Nova Scotia. On November 26, 2019, Urbanfund announced an investment of a 20% equity stake in a 145 Unit Residential Portfolio Located in Dartmouth, Nova Scotia. Urbanfund pays a quarterly dividend of 0.0075/share, representing $0.03/share on an annualized basis (3.85% annual yield).
Market Cap: $36.4M
YTD-Return: -3.8%
5-Year Return: +208%
30-Day Average Trading Volume: 3,740
90-Day Average Trading Volume: 4,430
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TORONTO – The Toronto Regional Real Estate Board says home sales in October surged as buyers continued moving off the sidelines amid lower interest rates.
The board said 6,658 homes changed hands last month in the Greater Toronto Area, up 44.4 per cent compared with 4,611 in the same month last year. Sales were up 14 per cent from September on a seasonally adjusted basis.
The average selling price was up 1.1 per cent compared with a year earlier at $1,135,215. The composite benchmark price, meant to represent the typical home, was down 3.3 per cent year-over-year.
“While we are still early in the Bank of Canada’s rate cutting cycle, it definitely does appear that an increasing number of buyers moved off the sidelines and back into the marketplace in October,” said TRREB president Jennifer Pearce in a news release.
“The positive affordability picture brought about by lower borrowing costs and relatively flat home prices prompted this improvement in market activity.”
The Bank of Canada has slashed its key interest rate four times since June, including a half-percentage point cut on Oct. 23. The rate now stands at 3.75 per cent, down from the high of five per cent that deterred many would-be buyers from the housing market.
New listings last month totalled 15,328, up 4.3 per cent from a year earlier.
In the City of Toronto, there were 2,509 sales last month, a 37.6 per cent jump from October 2023. Throughout the rest of the GTA, home sales rose 48.9 per cent to 4,149.
The sales uptick is encouraging, said Cameron Forbes, general manager and broker for Re/Max Realtron Realty Inc., who added the figures for October were stronger than he anticipated.
“I thought they’d be up for sure, but not necessarily that much,” said Forbes.
“Obviously, the 50 basis points was certainly a great move in the right direction. I just thought it would take more to get things going.”
He said it shows confidence in the market is returning faster than expected, especially among existing homeowners looking for a new property.
“The average consumer who’s employed and may have been able to get some increases in their wages over the last little bit to make up some ground with inflation, I think they’re confident, so they’re looking in the market.
“The conditions are nice because you’ve got a little more time, you’ve got more choice, you’ve got fewer other buyers to compete against.”
All property types saw more sales in October compared with a year ago throughout the GTA.
Townhouses led the surge with 56.8 per cent more sales, followed by detached homes at 46.6 per cent and semi-detached homes at 44 per cent. There were 33.4 per cent more condos that changed hands year-over-year.
“Market conditions did tighten in October, but there is still a lot of inventory and therefore choice for homebuyers,” said TRREB chief market analyst Jason Mercer.
“This choice will keep home price growth moderate over the next few months. However, as inventory is absorbed and home construction continues to lag population growth, selling price growth will accelerate, likely as we move through the spring of 2025.”
This report by The Canadian Press was first published Nov. 6, 2024.
HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.
Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.
Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.
The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.
Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.
They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.
The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.
This report by The Canadian Press was first published Oct. 24, 2024.
Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.
Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.
Average residential home price in B.C.: $938,500
Average price in greater Vancouver (2024 year to date): $1,304,438
Average price in greater Victoria (2024 year to date): $979,103
Average price in the Okanagan (2024 year to date): $748,015
Average two-bedroom purpose-built rental in Vancouver: $2,181
Average two-bedroom purpose-built rental in Victoria: $1,839
Average two-bedroom purpose-built rental in Canada: $1,359
Rental vacancy rate in Vancouver: 0.9 per cent
How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent
This report by The Canadian Press was first published Oct. 17, 2024.
ViveRE Communities Inc. (
Canlan Ice Sports Corp. (
Urbanfund Corp. (
