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.
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.
Here are the top 10 cities that emerged as the best for renters in 2024:
St. John’s, NL
St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.
Sherbrooke, QC
Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.
Québec City, QC
Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.
Trois-Rivières, QC
Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.
Saguenay, QC
Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.
Granby, QC
Granby, nestled in the heart of Quebec’s Eastern Townships, offers renters a delightful blend of small-town charm and ample opportunities. Known for its beautiful parks, vibrant cultural scene, and family-friendly environment, Granby provides an exceptional quality of life. The city’s affordable housing market and strong sense of community make it an attractive option for those seeking a peaceful yet dynamic place to live. With its renowned zoo, bustling downtown, and numerous outdoor activities, Granby is a hidden gem that caters to a diverse range of lifestyles.
Fredericton, NB
Fredericton, the capital city of New Brunswick, offers renters a harmonious blend of historical charm and modern amenities. Known for its vibrant arts scene, beautiful riverfront, and welcoming community, Fredericton provides an excellent quality of life. The city boasts affordable housing options, scenic parks, and a strong educational presence with institutions like the University of New Brunswick. Its rich cultural heritage, coupled with a thriving local economy, makes Fredericton an attractive destination for those seeking a balanced and fulfilling lifestyle.
Saint John, NB
Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.
Saint-Hyacinthe, QC
Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.
Lévis, QC
Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.
This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.
Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.
Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.
For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.
While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.
