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Investing in Real Estate Through Private REITs

Investing in Real Estate Through Private REITs

Real estate has long been considered an advantageous investment. There are good reasons behind this perception: it tends to appreciate; it’s a tangible asset; and it generates income in the short and long-term, usually through rent. Many investors will purchase an entire property or a stake in one — for example, multi-family residential, commercial, self-storage or farmland. In recent years, real-estate investment trusts, or REITs, have become popular because they offer a way to indirectly invest in real estate. REITs own a portfolio of properties, which they operate to generate a return for investors, making them an accessible way to invest in real estate without purchasing or managing a physical property. 

Efficient

Directly investing in real assets, such as property, brings with it many obligations and costs. There may be capital improvements required to ensure the property keeps its value, as well as ongoing maintenance. Revenue properties also bring with them the rental cycle, which requires a commitment to managing paperwork and leasing, as well as advertising costs. In addition, there are tax implications, which likely require expert advice. Investment in a REIT allows investors to benefit from the rental revenue and long-term appreciation of real estate assets without the investment of time and unexpected costs.

Easy & Approachable

Adding a REIT to your investment portfolio is as simple as consulting with your financial advisor about what is available and appropriate for you. There are both private and registered plans available — private REITs are known as “alternative investments,” not listed on public stock exchanges, and their value is derived based on the makeup of the property in their portfolio rather than fluctuations in the market, which may make them lower-risk.

Inflation Hedge

Real estate has long been seen as an effective hedge against inflation, offering immediate and long-term revenue streams that are protected from fluctuations in the stock market. This resilience — and appreciation in value over the long term — often results in historically stable returns for investors.

What Makes Avenue Living Unique?

Avenue Living is one of the largest private real estate owners in western Canada. We offer four distinct investment vehicles to invest in multi-family residential and commercial real estate, farmland, and self-storage properties. While many REITs outsource their property management to third-parties, Avenue Living is an active owner/operator — we manage the acquisition, capital improvements, maintenance, leasing, and customer service for our properties in-house. This is made possible by a vertically integrated platform comprised of a team of experts who support every aspect of our business. This platform allows us to ensure we meet the needs of all our stakeholders, including residents, employees, investors, and the communities in which we operate.

Investing in Real Estate Through Private REITs

Investing in Real Estate Through Private REITs

Real estate has long been considered an advantageous investment. There are good reasons behind this perception: it tends to appreciate; it’s a tangible asset; and it generates income in the short and long-term, usually through rent. Many investors will purchase an entire property or a stake in one — for example, multi-family residential, commercial, self-storage or farmland. In recent years, real-estate investment trusts, or REITs, have become popular because they offer a way to indirectly invest in real estate. REITs own a portfolio of properties, which they lease out to generate revenue for investors making them an accessible way to invest in real estate without purchasing or managing a physical property.

Efficient

Directly investing in real assets, such as property, brings with it many obligations and costs. There may be capital improvements required to ensure the property keeps its value, as well as ongoing maintenance. Revenue properties also bring with them the rental cycle, which requires a commitment to managing paperwork and leasing, as well as advertising costs. In addition, there are tax implications, which likely require expert advice. Investment in a REIT allows investors to benefit from the rental revenue and long-term appreciation of real estate assets without the investment of time and unexpected costs.

Easy & Approachable

Adding a REIT to your investment portfolio is as simple as consulting with your financial advisor about what is available and appropriate for you. There are both private and registered plans available — private REITs are known as “alternative investments,” not listed on public stock exchanges, and their value is derived based on the makeup of the property in their portfolio rather than fluctuations in the market, which may make them lower-risk.

Inflation Hedge

Real estate has long been seen as an effective hedge against inflation, offering immediate and long-term revenue streams that are protected from fluctuations in the stock market. This resilience — and appreciation in value over the long term — often results in historically stable returns for investors.

What Makes Avenue Living Unique?

Avenue Living is one of the largest private real estate owners in western Canada. We offer four distinct investment vehicles to invest in multi-family residential and commercial real estate, farmland, and self-storage properties. While many REITs outsource their property management to third-parties, Avenue Living is an active owner/operator — we manage the acquisition, capital improvements, maintenance, leasing, and customer service for our properties in-house. This is made possible by a vertically integrated platform comprised of a team of experts who support every aspect of our business. This platform allows us to ensure we meet the needs of all our stakeholders, including residents, employees, investors, and the communities in which we operate.

2022 A Historic Year for Our Defensible Strategy

AVenue living report

In 2022, Avenue Living grew to $4.6B in assets under management across our four asset classes, and now operates in one third of the provinces and states throughout North America. With a cycle-tested business model and a steadfast commitment to the everyday, Avenue Living continued to make great strides. Our expanded footprint includes new offices in Toronto and Dallas.

Throughout the year, we focused on improving our customer satisfaction through active management, invested in technology to create operational efficiencies, and elevated our ESG efforts. In 2022, accelerating inflation and rising interest rates created a challenging investment environment, with negative returns flashing across the asset spectrum. Still, that didn’t stop Avenue Living’s 16-year growth streak.

It speaks to the durability of Avenue Living’s business model across multiple market cycles,” says Gabriel Millard, SVP, Capital Markets – Equity & Research. “2008 (GFC) and 2014 (Commodity Crisis) were lost years for many other players, but they were periods of growth for Avenue Living as we leaned into the opportunities. 2022 was another very formative year for us.

CAPITAL RAISE MOMENTUM CONTINUES IN CORE TRUST

In just six months, Avenue Living Asset Management has raised $110 Million. Initially, the equity raise for Avenue Living Real Estate Core Trust was targeted at $75 Million by year’s end. However, due to robust investor interest and traction, the Core Trust rapidly became over-subscribed.

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