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Artis management tables 'bold new vision and strategy' | RENX – Real Estate News EXchange

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IMAGE: Artis REIT logo.Artis Real Estate Investment Trust’s (AX-UN-T) new management is forging a path that would see it eventually shed REIT status and convert into an open-ended trust.

The strategy is one of several announcements this morning as management ended Artis’ 100-day review process.

The strategy includes the firming up of Artis’ new management team, a plan to monetize its real estate assets to redeploy capital into what it terms “active real estate capital markets investments” and an increase in distributions to $0.60 per unit annually from $0.5562 effective with the March payout (distributed in April).

“What we are about to share is pioneering in the Canadian capital markets and I am confident that the Artis team can, and will, transform Artis,” said Samir Manji, who has been named the permanent CEO of Artis, during a call with analysts and investors Wednesday morning.

“I will also add that our plan is not the easy road and will require an extremely demanding emphasis on execution.

“We are committed to turning our platform into a growth vehicle and giving Artis a real purpose for existence for its owners.”

Manji had been appointed interim CEO following the ouster of previous CEO and board member Armin Martens last fall.

At that time, Manji’s Sandpiper Group had led a group of dissident investors in forcing out several top executives due to what it considered the poor financial performance of the REIT.

New “value investing” strategy for Artis

“There is a lot embedded in this bold, pioneering and truly unique vision,” Manji said. “We will become agnostic on how we own real estate. We will focus heavily on emphasizing the importance of capital allocation. We will embrace opportunism and capitalize on the inefficiencies that the capital market provides for us.

“Simply put, real estate sells for dramatically less in the public markets today than it does in the private markets.”

Manji said the focus will be on growing Artis’ NAV per unit and distributions for the owners of the REIT through value investing. He reiterated Artis has traded at a material discount to its underlying NAV for many years.

While the REIT’s most IFRS value is listed at $15.03 per unit, Manji said on the call a revaluation undertaken during the past couple of months has increased that value to$16.04 per unit. In Wednesday noon-hour trading on the TSX, the stock was changing hands at $11.09.

Among the other management changes, Ben Rodney has been appointed chairman of the board of trustees, the trust has promoted Jaclyn Koenig to chief financial officer and Kim Riley to chief operating officer, and executive vice-president Frank Sherlock will retire at the end of June, in addition to the previously announced departure of current CFO Jim Green.

The appointments of Riley and Koenig will take effect April 1.

Last week during its 2020 financials call, Manji said all previous initiatives by Artis management, including a possible sale of the entire REIT, had been discontinued. The new leadership had already quashed a plan to spin off its underperforming retail assets into a separate entity.

Monetize industrial assets

The plan identifies several key aspects of the strategy including Artis’ plan to monetize its “extremely attractive” industrial portfolio and “evaluate” the sale of office and retail assets. Proceeds would be turned back into capital markets investments, value-add investments and developments.

“We know that today there is insatiable demand for industrial in the market,” Rodney told analysts and investors. He noted a recent asset sale in the Denver area netted a four per cent cap rate and that there remains enormous interest in Artis’ industrial assets.

“We are not giving up on industrial real estate” Rodney said, noting one possibility is to turn equity in individual assets into investments in the entities which make purchases from Artis.

Artis could also retain ownership of some of its current properties — or future acquisitions.

To facilitate this, Artis will ask its investors at its upcoming special and annual meeting for permission to end its REIT status and, eventually, become an open-ended trust.

“We’re looking for the approval to convert to an open-ended trust, but it doesn’t mean we do it immediately,” Rodney said. That would allow Artis to access different capital streams and offer tax advantages in the U.S.

Sandpiper and Halcyon International Limited (formerly Jetport Inc., controlled by Steven Joyce) together control about 22 per cent of the Artis units and are in support of the plan. In addition, management says it has support from four other unitholders representing approximately nine per cent of the units.

Management wants to convert its assets into “liquid, strategic investments in portfolio companies (i.e., undervalued public real estate entities), as well as high-conviction hard assets.” It also plans to reduce leverage.

Artis to follow Sandpiper’s investment strategy

To drive maximum returns, Artis would seek “meaningful and influential ownership positions in undervalued entities.”

For the near term, it will focus on publicly listed Canadian real estate entities, employing a strategy similar to that of Sandpiper. That would include seeking board representation and other activist investor types of activities in an effort to increase value.

“Artis may serve as a catalyst for privatizations, merger and acquisition opportunities, strategic transformations and operational and governance improvements for its portfolio companies, with a focus on maximizing value for the owners of Artis,” the release states.

Management says it has not yet identified any specific targets for such investment.

The distribution increase is the second for Artis since its new management took control and is in line with pledges to increase investor payouts. So far, the distributions have been raised about 11 per cent.

Management also plans to rebrand and rename Artis, and has mapped out a two- to three-year timeline to fully implement the new strategies.

Artis intends to maintain its Winnipeg headquarters, but will evaluate its satellite offices based on its future geographical presence and ongoing job functions.

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Hot real estate market sparks warnings to potential buyers as complaints to regulator double

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As home sales in the province continue on a dizzying trajectory, the province’s real estate watchdog and regulator are warning buyers to be wary of what they may be getting into.

The Real Estate Council of B.C. (RECBC) and the Office of the Superintendent of Real Estate said that in the first three months of 2021, they have seen an increase in inquiries and complaints.

Calls to the regulator were up 42 per cent over the previous year, while complaints, such as how offers were made and accepted, were double the number received in the same period in 2020.

“Buying a home is one of life’s biggest financial decisions. There are potential risks at the best of times, but with the added pressure and stress of the current market conditions, those risks are amplified,” Micheal Noseworthy, superintendent of real estate, said in a statement.

 

 

The Real Estate Board of Greater Vancouver says sales in the region have continued at a record-setting pace.

Residential home sales covered by the board totalled 5,708 in March 2021, up 126.1 per cent from March 2020, when the COVID-19 pandemic hit, and up 53.2 per cent from February of this year.

Rural and suburban areas have experienced the biggest spikes.

For the past two weeks, Jay Park has been in the middle of the buying frenzy.

He and his partner are trying to upgrade from their one-bedroom apartment to a two-bedroom condo or townhouse in Vancouver.

“I wish we had done this a month or two ago,” he said.

 

A condo tower under construction is pictured in downtown Vancouver in February 2020. (THE CANADIAN PRESS/Darryl Dyck)

 

Park put an offer on a $1-million condo, $4,000 above asking price.

“To entice the [seller], we put in a subject-free offer, but it wasn’t successful,” he said. “They accepted $110,000 over asking price that was also subject-free.”

The hot market has led to bidding wars. Some would-be buyers have even lined up outside for days to try to get a jump on a property.

Erin Seeley, the CEO of the council, is warning buyers to do their research and be aware of risks before making an offer.

“It’s really important that buyers have engaged with their lender before they’re making offers so they know how to stay within a reasonable budget,” she said.

Seeley said some of the complaints the council has heard from buyers is that they weren’t aware the seller has a right to take an early offer.

“And the seller was really in the driver’s seat about setting the pricing,” she said.

 

Demand continues to outstrip supply for housing in cities like Vancouver. (Rafferty Baker/CBC)

 

Aaron Jasper, a Vancouver realtor, advises clients to avoid cash offers and to include finance clauses even if it may mean they lose a deal.

“There’s a lot of frustration among buyers, feeling pressure to take some risk,” he said.

“You’re better to be delayed perhaps a year getting into the market as opposed to being completely financially ruined.”

Jasper also says realtors are limited in the advice they can give to clients on legal matters, home inspections, potential deficiencies with homes, and financing.

‘Caught up in the craziness’

Other tips from the council include seeking professional advice before making a subject-free offer or proceeding without a home inspection, and speaking to a professional to determine how market conditions may be affecting prices.

Meantime, people like Jay Park say they are still keen to buy. Park has more viewings scheduled and is optimistic.

“It’s a very exciting time for us, but I also don’t want to get caught up in the craziness and make a purchase that’s above our means.”

Source: – CBC.ca

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Black Press Media introduces one of Western Canada’s best real estate platforms helping home buyers Find. Love. Live. that new home

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Need an agent who knows the community?

Or, is it time to look for a new place to live, but you don’t know what’s on the market?

Whatever the real estate need is for residents in the communities of British Columbia, Yukon & Alberta, there’s a new way to do that one-stop shopping – by visiting Today’s Home.

The slogan for the site is “Find. Love. Live.”

“We want people to find their dream home, love it, and live in it,” said group publisher Lisa Farquharson.

Building on the success of Black Press Media’s niche digital platforms – Today’s Home brings the same wealth of knowledge and local expertise to the search for a home, be it buying, selling, or even just daydreaming about what changes you can make in the future.

Search hundreds of listings that local real estate agents have available.

The listings cover properties around the region, from a one-bedroom, one-bath condo for $339,900 to million-dollar acreages throughout the province of BC, Yukon, Central Alberta and beyond.

Click on a listing, and see not only the realtor handling the property sale, but links to his or her other listings and social media feeds. With the click of a mouse, take a virtual tour of the property, find the property’s walking score, and learn about nearby amenities.

There are links available to schedule a showing, or send the agent a comment or question.

Want to share a listing? When you click on the share button, you’ll actually send an attractive digital flyer of the prospective property, not just a link.

There’s even a button to help determine how much you have to spend, courtesy of the convenient mortgage calculator.

Plus, scroll down the page on Today’s Home and find a list of expert local real estate professionals who can answer questions or help with that home sale, Farquharson explained.

Today’s Home offers the advantage of the massive reach that Black Press Media has built throughout Western Canada with its network of community newspapers and online products. That allows the public to tailor real estate searches based on location, price, and other key factors while allowing real estate professionals to gain unprecedented audience reach with their listings.

Today’s Home will dovetail into the media company’s existing print real estate publications.

“Black Press Media has real estate solutions in print and now we can add in the digital component,” Farquharson said.

Watch for expansion of the Today’s Home platform in the near future, she added. That will come as Black Press Media adds a new component – the development community. Developers will be able to reach a huge audience when their projects are ready for presentation.

For information on Today’s Home, contact group publisher Lisa Farquharson at 604-994-1020 or via email.

Happy house hunting!

Source: – Aldergrove Star

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PGIM Real Estate, Revera Affiliate Target UK Market in Newly Formed JV

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Real Estate Sales In September

PGIM Real Estate has been active in recent months providing capital to facilitate blockbuster senior housing acquisitions. Now the firm is looking to capitalize on demand for senior housing in the United Kingdom.

The Madison, New Jersey-based real estate investor and lender announced this week it is entering into a joint venture with Signature Senior Lifestyle, an affiliate of Revera, to develop and operate senior housing communities around greater London

Mississauga, Ontario-based Revera serves 20,000 older adults in long-term care homes and retirement residences in Canada. It is also the majority shareholder of Sunrise Senior Living, one of the largest senior housing providers in the U.S. The company operates a portfolio of 12 communities in the U.K. under the Signature Senior Lifestyle brand, with one community in development that is slated to open in autumn 2021.

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The JV has one development underway — a senior housing community, or “prime care” home, in southwest London. PGIM worked with Elevation Partners, a London-based investor and asset manager in U.K. health care real estate, in sourcing, structuring and executing the venture. Additionally, PGIM will retain the firm to leverage its expertise.

PGIM and Revera did not respond to requests for comment from Senior Housing News regarding details about its development pipeline.

London is emerging as a future hotbed of senior housing development, spurred by favorable demographic growth trends and a lack of available supply, and the PGIM-Revera venture will find competition.

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Maplewood Senior Living CEO Gregory Smith told SHN last month that demand for U.K. senior housing is comparable to major U.S. markets such as New York and San Francisco, where supply has historically been constrained.

Maplewood and its investment partner, Omega Healthcare Investors (NYSE: OHI) are looking to expand its luxury Inspir brand to the U.K., and identified five suburban markets around London with high barriers to entry that are favorable for the brand’s growth.

Revera CEO Tom Wellner sees similar untapped upside potential for senior housing in the U.K.

Source: – Senior Housing News

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