We’re excited to share insights from Wealth Professional Canada Magazine’s interview with Marina Post, CFO of Avenue Living. As a finance leader, Marina has been instrumental in nurturing our talented and diverse team of experts across taxation, investor relations, asset management, and more.
Hear from Marina about how our finance team is focused on effective management while preparing for ongoing growth.
Today, we honour the remarkable achievements of women worldwide. Whether in the boardrooms of Avenue Living headquarters or one of our field offices across North America, your contributions propel us forward and pave the way for future generations.
Join us in celebrating with a video highlighting the remarkable women within our organization.
When we began reconceptualizing Capital Tower in Edmonton, we knew it was only fitting the renewed building would need a new name. We’re pleased to unveil a fresh identity for the property, now called The SunRise. This renaming marks a significant milestone in the building’s history, symbolizing its extensive renovation and revival. The SunRise reflects a new beginning, promising a fresh outlook and enhanced living experience for the building’s residents. The property will offer modern amenities and a renewed sense of vibrancy to its inhabitants and the surrounding Chinatown neighbourhood — which is undergoing a revival of its own.
When selecting a name, we wanted to evoke a sense of optimism and positivity. Just as a SunRise marks the beginning of a new day, the name suggests a new beginning for residents who choose to make this apartment their home. Additionally, the imagery of a SunRise is often associated with warmth, light, and a welcoming atmosphere, all of which are qualities that many individuals seek in their living spaces. The name not only captures the essence of a new chapter but also conveys a sense of hope and inspiration, making it an appealing and meaningful choice for an apartment building.
This name gains even more significance with the addition of a one-of-a-kind solar panel mural to the building’s North exterior. This building is a fixture of Edmonton’s iconic Chinatown, and the location of the SunRise is within the Treaty 6 territory. As such, the mural depicts the unity, coexistence, and cultural parallels between First Nations and Chinese cultures, incorporating imagery from the Cree seven sacred grandfather teachings and the Chinese zodiac. This impressive feature enhances the properties’ aesthetics and underscores Avenue Living’s commitment to sustainability. The mural, which collects solar energy, serves as a display that reflects the neighbourhood’s unique heritage but also demonstrates the building’s focus on harnessing renewable resources, making “SunRise” an apt name for this innovative apartment complex.
To learn more about the project, check out our blog, ‘Capital Tower: A Beacon of Sustainability and Community Revival in Edmonton’ which outlines the building’s history and the outcomes of the renovation.
This commentary and the information contained herein are for educational and informational purposes only and do not constitute an offer to sell, or a solicitation of an offer to buy, any securities or related financial instruments. This article may contain forward-looking statements. Readers should refer to information contained on our website at https://avenuelivingam.wpenginepowered.com/forward-looking-statements for additional information regarding forward-looking statements and certain risks associated with them.
2023 was a challenging year for Canadians and the broader markets. While inflation has slowed and interest rates appear to have stabilized, the overall economic picture continues to fluctuate.
“It’s been only one year, but we’ve seen changes that you don’t normally see within five,” says Gabriel Millard, Senior Vice President, Capital Markets – Equity and Research. “We’re still in the midst of digesting one of the fastest rate-hiking cycles in history, with a lot of variables in the macro environment.”
In light of this, investors have expressed increased interest in alternative investments for stability and returns that are non-correlated to public markets. Against that backdrop, we’ve continued to invest in the everyday, striking a balance between defensibility, growth, and sustainability across our strategies.
Multi-family and self-storage: from pause to growth
“During the first nine months of 2023, we took a deliberate pause on acquisitions within both our multi-family and self-storage strategies,” Millard says. “Over that time, we saw material net operating income (NOI) improvements from rent adjustments enabled by heightened service standards and introducing new operational cost-efficiency measures.”
Avenue Living shifted gears in the back half of the year, adding over 1,600 units to our multi-family residential footprint. In November, we finalized a deal with a large institutional investor for a 700-unit portfolio across five towers and a number of townhomes.
“We’re seeing opportunities to acquire higher-value properties from institutional players, including pension funds, which weren’t available even two years ago,” Millard says.
As borrowing costs accelerated, the importance of vertical integration, active property management, and managing rising costs in the real estate space became acutely clear. Across both the multi-family and self-storage markets, pure capital allocators struggled to sustain their investment returns, creating more acquisition opportunities.
“We’re exiting 2023 at just over 17,000 multi-family units,” Millard says. “The Mini Mall Storage Properties fund also grew quite rapidly to almost 8 million square feet — including the largest acquisition in its history of almost 900,000 square feet across 19 properties — making Mini Mall the top 21st largest self-storage operator in North America by rentable square footage.”
The multi-family Prairie markets are seeing growth from record net immigration, driven by households seeking affordability. A sizeable portion of these newcomers are coming from higher-growth markets like Vancouver, Toronto, and Montreal where rent payments can take up 40% to 50% of households’ income.
Historically, self-storage has proven to be a resilient asset class and remained stable even in times like the 2008 North American real estate crash. Robust consumer-driven demand continues to propel the investment class, painting a constructive picture.
Strong tailwinds for Canadian farming
Avenue Living’s two Saskatchewan-focused agricultural strategies, the Avenue Living Agricultural Trust and Tract Farmland Partners LP (Tract), have also managed well amid persistent demand for farmland investment from across Canada.
In its mid-2023 report on farmland values, Farm Credit Canada saw Saskatchewan lead the nation with an average gain of 11.4%. Most locations in the province, the report said, saw increases between 7% and 11%. On the ground, Tract identified acquisition targets from word-of-mouth referrals within the farming community, a testament to its reputation as a trusted partner.
“It’s a consolidation play that’s still just in its early stages. An estimated 98% of transactions within the province remain outside of investment funds, and we’re continuing to acquire assets,” Millard says. “By the time we close a deal, we’re already seeing impressive appreciation.”
ESG efforts coming to fruition
Roughly two years after striking its partnership with the Canada Infrastructure Bank (CIB), Avenue Living is moving forward on a number of energy retrofit projects across its multi-family residential portfolio, including work on large solar arrays, exterior renovations, and mechanical upgrades.
“A large portion of the acquisitions in our self-storage fund are within the Sun Belt region of the United States. Our portfolio is made up of assets that are wide, not high,” Millard says. “That offers an abundance of roofline where we’re able to implement solar projects.”
Avenue Living’s agricultural strategy also lends itself well to ESG, given Canada’s outsized role in producing staple grain products.
“The opportunity to help improve food security for Canadians and other nations is something we’re very proud to be a part of,” he says.
Avenue Living released its first full ESG report in 2023, with a second one set to come out this year. Beyond that, we’ve bolstered our commitment to responsible investing. In 2021, we became a signatory to the United Nations-supported Principles for Responsible Investment (PRI) and over the last year we furthered our commitment and became members of the Responsible Investment Association (RIA).
Avenue Living continued its annual Avenue Giving campaign, bringing together donations from residents and staff to support local food banks. We also launched an Employer-Supported Volunteerism program in the last quarter of 2023. In three months, employees volunteered for over 160 hours with 10 organizations including local food banks, Canadian Blood Services, veteran and seniors’ resource centres, community kitchens, and drop-in centres across the Prairies.
For 2024, a continued stewardship focus
From the beginning, Avenue Living’s growth has been inextricably tied to its commitment to the customer. Millard says that focus will continue in 2024, along with a focus on ensuring defensibility across the organization.
“Since 2020, it’s been a volatile period, and 2024 doesn’t appear to be any different,” he says. “As a responsible asset manager, we’re maintaining a leverage profile in the low 50%, and keeping over 10% of our NAV in liquidity to ensure defensibility.”
Last year, Avenue Living acquired over half a billion dollars in multi-family assets. With a large pipeline of acquisitions, it’s pressing its growth advantage in 2024, allowing improvement of margins by spreading fixed head-office costs over a larger number of units.
“We don’t grow for the sake of growth, but to improve our overall operations through accretive transactions,” Millard says. “Through technology and operational improvements, our focus is to continually level up our operations for the benefit of our residents, customers, and investors.”
This commentary and the information contained herein are for educational and informational purposes only and do not constitute an offer to sell, or a solicitation of an offer to buy, any securities or related financial instruments. This article may contain forward-looking statements. Readers should refer to information contained on our website at https://avenuelivingam.wpenginepowered.com/forward-looking-statements for additional information regarding forward-looking statements and certain risks associated with them.
The Avenue Living story begins in 2006, but the story of our current marketing team and how we formulated our strategy is rooted, like so many things, in the pandemic.
In the days when the world ground to a halt, and everyone waited to see what would happen next, we realized people were craving information, and we increased our output when many other organizations went dark. We shared daily updates about our business and the investment landscape, giving insight into our operations and how we were managing what were turbulent times for everyone.
And since then, we haven’t stopped. In fact, we’ve found more ways to get the word out, exploring new channels and mediums to reach our audience at various touchpoints. The team has grown alongside the business — as we’ve expanded our geographical footprint and offerings, the demand for collateral and communication has increased.
Thought leadership has become a cornerstone of our strategy, as we dig into topics like the promise in the Prairies, the future of multi-family residential and self-storage, or our landmark partnership with the Canada Infrastructure Bank. “We’re an open platform,” says our Chief Investment Officer, Jason Jogia. “We’re eager to share our ideas with our peers to further advance the industry and create a better overall experience for renters across North America.”
Those ideas come from our fellow team members in all areas of the organization, who spearhead exciting new initiatives, driving innovation in the property management and investment industries.
The Avenue Living Marketing Team
The Marketing and Communications team is a conduit for getting those ideas out to the world. Avenue Living’s vertical integration means we have the tools and expertise to serve every aspect of our business in-house — including marketing.
The “MarComm” group, led by Senior Vice President Tammy Cho, includes strategy, content creators, back-end development experts, designers, photographers, and videographers. Together, the team works to tell the Avenue Living story and share insights into the investment landscape. We come from a variety of backgrounds, from tech to advertising and finance, allowing us to bring unique perspectives to our approach (and unique opinions about a wide range of topics, including the best kinds of mustard).
“Avenue Living’s branding and communications strategy is always evolving,” says Tammy. “Our dynamic team keeps pace with the market and industry while raising the bar on how we interact with our customers, investors, and employees.”
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A Strategic, Multi-Channel Approach
Transparency is key to how we operate, but for us to be truly transparent we proactively tell our story in a well-researched and meaningful way. And that’s where our marketing team comes in. They’re part of our proprietary platform, which supports every aspect of the organization and helps ensure we deliver value to our audience.
We work hand in hand with our sales team and help our investors gain insight into the world of real estate investment by keeping a close eye on what’s happening in the finance space, multi-family residential market, agricultural sector, and the self-storage industry.
Together the team works to produce videos, social media, blog posts, year-end reviews, a biweekly newsletter, and regular reports for our investors. We create ad campaigns for broadcast (maybe you saw us during the Stanley Cup playoffs) and other channels like BNN. We help coordinate and promote industry events, sponsorships, and partnerships that shed light on innovations or educate our audience about real estate investments.
But we also uncover the best stories to tell you — the ones that let people see our core values in action across every area of the organization, from our safety initiatives to our market selection strategies. The marketing team is here to shine a light on the efforts of our entire Avenue Living team, from ESG partnerships to continuous improvement.
“We’re innovative and original,” says Tammy. “We’re consistently going against the grain to bring a fresh perspective on real estate investments while delivering the best experience for our stakeholders.”
Leading the Way
True thought leadership means looking beyond our own front doors and talking about the bigger picture — the external factors that affect the macro-economic environment and inform our strategy. We pay close attention to trends and innovations in property and asset management that we believe are valuable.
As active managers our focus has always been on our customers, and how we can deliver a top-tier experience to them — whether they’re making their home with us, storing their treasures, or leasing the land they work. We believe sharing our insights with our peers elevates the industry as a whole. And keeping our investors informed helps them understand — and have confidence in — our strategy and operations.
Our efforts have paid off, our LinkedIn subscriber base has grown by 27% in the last year. While our recently revamped website — in conjunction with a rebrand and advertising campaigns — has significantly increased our website sessions, getting many more users acquainted with Avenue Living. We pay careful attention to analytics, fine-tuning our topics to address the subjects that our audience finds most relevant and useful.
Perhaps best of all, we get to tell you about the people who make Avenue Living what it is today —our property management experts, safety team, legal counsel, the analysts driving our efforts to always do better, our People and Culture group, and the finance and investment experts who make sure we execute on our strategy. In an organization full of brilliant minds, we’re thrilled to be the partner that shares the value they’re adding every day.
This commentary and the information contained herein are for educational and informational purposes only and do not constitute an offer to sell, or a solicitation of an offer to buy, any securities or related financial instruments. This article may contain forward-looking statements. Readers should refer to information contained on our website at https://avenuelivingam.wpenginepowered.com/forward-looking-statements for additional information regarding forward-looking statements and certain risks associated with them.
A happy workplace is a productive workplace. But did you know that safety is a major contributor to employee satisfaction? Workplace injuries carry a significant impact, impacting tens of thousands of workers every year, affecting their families, co-workers, and communities. In 2022, Canada’s Worker’s Compensation Board (WCB) reported there were 4.33 injuries per 100 workers in Canada.
One of Avenue Living’s core values is “Duty of Care,” and while we often talk about it in relation to our residents, customers, and our investors, it also applies to our workforce. That duty manifests itself in creating an environment that seeks to minimize risks for every member of our team, whether they work in our offices or out in the field.
Safety is more than a set of policies and procedures, it’s part of an organization’s culture, and it flows from the top down.
“Safety is connected to everything,” says John Price, Senior Vice President Health, Safety, and Environment (HSE). “The better your safety culture, the more engaged your teams are. Studies show that organizations who have highly engaged employees can reduce safety-related incidents by up to 70 per cent.”
An article published by the Harvard School of Public Health notes that “engaged workers are more likely to be aware of their surroundings and best safety practices making them more likely to take steps to protect their co-workers.”
This engagement also has a ripple effect. “Everyone wants to feel that they’re valued,” says John. “It’s true that happy employees are the best employees. It’s a key ingredient in building the highest performing teams.”
In practical terms, facilitating safe work environments results in bottom-line benefits: reduced absenteeism, better employee retention, lower insurance costs (through reduced claims and a better safety record), and better overall performance. While there’s no way to eliminate risk completely, a positive safety culture increases trust throughout an organization — both with employees and their peers, and between employees and management, reducing disruptions to business.
Avenue Living’s Culture of Safety
“We’re focused on putting the tools for safety in people’s hands before they start work,” says John. Those tools include high-tech solutions but also plans and policies, training, and an organization-wide mindset that prioritizes everyone’s well-being. “Most workplace injuries are preventable when we’ve adequately equipped our teams with the knowledge, solutions, and planning necessary to carry out their jobs safely and effectively.”
We achieved our Safety Certificates of Recognition (COR) from the Alberta government starting in 2020, which requires third-party audits of safety practices, and we’ve implemented various technological tools to help keep our remote workers safe, track incidents, and monitor hazards. Software such as SitePhotos allows us to share visual records of maintenance jobs, and the ClearRisk application helps us track hazards and document risk mitigation. For lone workers, SolusGuard provides an extra layer of security via a panic button and app that prompts regular check-ins.
Always Moving Forward
But technology is only part of the story. A culture of safety ensures that everyone in the organization, from the top down, is committed to preventing incidents and putting barriers in place so when an incident occurs, no one gets hurt. Humans make errors and it’s important that, as a company, we work together to build capacity around these situations. “It’s how we grow and improve. There’s no better teacher of how to make work safer than those who perform the tasks,” says John.
Continuous improvement is a cornerstone of our organization, and we’ve taken a closer look at how our HSE team is structured and found a way to best serve the diverse needs of our different business units.
“We’re creating some bench strength and giving each team dedicated specialists,” says John, who notes that the restructuring was in response to hearing different business units’ needs. Now our self-storage, property management, and other areas have their own single point of contact with the safety team. This structure allows our safety specialists to develop deep knowledge of each business and work closely with the team to identify challenges and create solutions. This is key to a proactive safety culture.
Over the past year, we have also developed more robust emergency plans. For example, in March 2023, we launched an emergency response plan across the organization that outlines safety procedures for potential risks.
Across our organization, we’re developing a robust incident command system to help our teams manage emergencies such as extreme weather events. This system provides a platform for how we respond and recover from major events that affect our customers, teams, and assets.
Additionally, management performs regular site visits. “Being on-site is the best way for them to understand the safety requirements in our day-to-day operations,” says John. It also allows opportunities for the entire team to connect in person, strengthening trust and opening the lines of communication.
All these efforts serve to keep us — and the communities in which we work — safe. And they have an added benefit. As a customer-centric organization, taking care of each other allows us to focus on the thing that sets us apart: delivering superior service to our residents and customers across North America.
This commentary and the information contained herein are for educational and informational purposes only and do not constitute an offer to sell, or a solicitation of an offer to buy, any securities or related financial instruments. This article may contain forward-looking statements. Readers should refer to information contained on our website at https://avenuelivingam.wpenginepowered.com/forward-looking-statements for additional information regarding forward-looking statements and certain risks associated with them.
A resident-centred approach is foundational to our property management philosophy and a key differentiator of our business model. Putting our residents’ needs at the heart of our acquisition, expansion, and service strategy has been key to our ongoing success.
Read more about how embracing vertical integration has allowed us to create a sophisticated, innovative property management platform.
Inclusivity can take many forms — the people who make up an organization’s team, the causes they support, and the principles they operate under. But it can also take the form of representation in other ways like in the case of Wetaskiwin Mall, an exciting piece of original art, painted by a local, renowned Indigenous artist.
As property owners and operators, we know our investments have an impact on the people who live and work in the communities in which we operate. We invest in spaces — multi-family homes and commercial space — that people develop deep connections with. The mural at Wetaskiwin Mall aims to showcase the culture of the community and evoke the theme of “Healing Medicine.”
Collaborating with a Local Artist
Painted by distinguished Indigenous artist Lance Cardinal, the 50-foot mural in the north wing of the mall symbolizes many ways of healing: ceremonial, medicinal, cultural, and healing through dance — a fitting subject given its location right outside an Alberta Health Services office and the Care Gateway Clinic. Cardinal painted the mural over ten days, with the help of an assistant.
Cardinal, from Big Stone Cree First Nation, is an artist and entrepreneur on the rise. In 2022, he collaborated with the Edmonton Oilers to write and produce the team’s new land acknowledgement and design their Turtle Island logo, which helped raise funds for Edmonton charities, while being one of the most popular and beloved alternate designs in the team’s history. His shoe collection with Kunitz Shoes, an Edmonton-based company, is set to launch this year and is currently on display at the Royal Alberta Museum.
Wetaskiwin, Alberta, which is 70 km south of Edmonton, is a community of around 13,000. The city is located on Treaty Six territory, bordered by two of the four Maskwacis First Nations — the Ermineskin and Samson Cree Nations — and serving two others — the Louis Bull Tribe and Montana First Nation. Wetaskiwin has rich Indigenous history; its name (which means “the hills where peace was made”) is a direct reference to the outcome of a battle between the Cree and Blackfoot.
Bringing People Together
Our strategy with Wetaskiwin Mall has always been to create a “community hub,” a place that provides customers with the essential services they need all in one place. In addition to national retailers and locally-owned stores and services, the mall is also home to Alberta Health Services, a pharmacy, medical clinic, optometrist, and more. Avenue Living has invested in Wetaskiwin for over a decade, with a presence that includes 401 multi-family units and 158,000 square feet of commercial space. In keeping with a key tenet of our strategy as an active manager, we have developed a deep understanding of the market and its residents. Since acquiring the shopping center in 2017, Avenue Living has carefully curated a roster of retailers and services that reflect the needs and wants of area residents.
“You don’t usually see local art in a retail environment like this,” says Slava Fedossenko, Director, Commercial Asset Management for Avenue Living, “but we wanted to create something that reflects the culture of the community.”
Avenue Living is immensely proud of our partnership with Lance Cardinal and the finished mural. While it is one of the first projects of its kind for us, we have plans to ensure it is not the last, and we look forward to working with local artists in other communities to showcase the places our residents and customers call home.
Read more about Lance Cardinal and this exciting project in The Wetaskiwin Times.
This commentary and the information contained herein are for educational and informational purposes only and do not constitute an offer to sell, or a solicitation of an offer to buy, any securities or related financial instruments. This article may contain forward-looking statements. Readers should refer to information contained on our website at https://avenuelivingam.wpenginepowered.com/forward-looking-statements for additional information regarding forward-looking statements and certain risks associated with them.
International Women’s Day provides an opportunity to reflect on the progress made toward gender equality — and the work that still needs to be done.
We believe every employee should have the opportunity to reach their full potential and are committed to creating a culture of respect, inclusivity, and diversity. By providing equal opportunities for all employees, we’ve created a business that’s stronger and better positioned to serve our customers and communities.
Hear firsthand from our team about how they’ve navigated leadership roles and fostered inclusivity.
“In everything we do, we focus on our residents and customers first.” This is a common phrase used by Avenue Living’s Chief Investment Officer, Jason Jogia, and a sentiment that reverberates throughout the organization. This laser focus on the customer drives our investment strategy, our approach to service, and our operations as a whole.
Since 2006, we’ve learned that superior customer service requires ongoing adaptation from our team. Employee satisfaction and customer satisfaction are uniquely linked; when a process is smooth and easy for our leasing specialists, maintenance associates, or regional portfolio managers, it usually means it’s convenient for our customers.
“We centre our operations around the customer and employee experience. We want to make tasks easier for everyone,” says Winford Rader, Vice President of Continuous Improvement. “Creating efficiencies means doing our research, evaluating the tools we’re using, and aligning our teams to best serve our customers.”
Avenue Living’s Continuous Improvement department develops better processes for our team and customers. Officially formed in 2019, the group of almost 20 includes business analysts, data analysts, and operational efficiency experts. They break procedures down and examine how each component can be streamlined. And sometimes, they uncover simple, time-saving solutions to a host of challenges.
The property management industry is in the middle of significant change, as new technology and changing customer needs push managers to consider how to attract and retain residents. The Entrata 2022 Renter’s Report notes that 62 per cent of renters surveyed prefer interaction with a real person — and it builds greater trust. Renters listed responsiveness, ability to give feedback (renter input), and face-to-face interaction as the top items they wanted their property manager to improve.
For Avenue Living, delivering industry-leading customer service has been a key differentiator from the very beginning. Providing a positive experience means re-examining our processes and adapting, whether it’s improving our response time to maintenance calls (99 per cent of which are fully resolved within 1.85 days) or making showings, rental applications, or the leasing process easier.
Sometimes the solutions to our biggest challenges lie in the smallest details.
Using data to drive improvement
The Continuous Improvement department looks at data from numerous sources, such as Google My Business, and Yardi Voyager to consolidate one “curated, validated, and trusted source of data.” With this one source of truth in hand, teams across the Avenue Living platform can begin to see where processes are performing well and where improvements can be made.
“It’s easy to get hung up on how we’ve historically done things,” says Winford Rader. “But sometimes asking the right questions and understanding the end result can help us arrive at an improved destination sooner.”
Humanity + Technology
The insight we get from front-line interactions between our residents and our Regional Portfolio Managers (RPMs), leasing specialists, and maintenance associates has led to simple solutions that can have a big impact. For example, improving the outcome of the leasing process by tailoring appointments to times when potential residents are most available, or creating tools that allow a smoother application and signing process.
The Continuous Improvement team works in tandem with business units across the organization to arrive at solutions, rather than prescribing them. The team gathers data and provides analysis that allows each group to determine a feasible endpoint. This collaborative effort creates greater buy-in and personal investment in the results.
Smoothing out these processes often has reduced costs by eliminating redundant efforts. Innovation that allows our team to save even minutes a day has a significant impact throughout the calendar year. Coupled with responsive customer service and a focus on retention, it has helped us create value for our investors, today and in the future.
The Continuous Improvement team allows us to think strategically and see how our end-to-end customer service processes work together. As the market evolves and resident demands change, we’re able to respond more effectively and work toward a shared vision that serves our customers, employees, and investors.
This commentary and the information contained herein are for educational and informational purposes only and do not constitute an offer to sell, or a solicitation of an offer to buy, any securities or related financial instruments. This article may contain forward-looking statements. Readers should refer to information contained on our website at https://avenuelivingam.wpenginepowered.com/forward-looking-statements for additional information regarding forward-looking statements and certain risks associated with them.
We’ve gathered the blog posts, articles, and white papers that garnered the most interest from our readers last year. They cover a diverse range of topics, from our partnership with the Canada Infrastructure Bank to the complexities of the private rental housing market, but they all come back to one thing: understanding the real estate investment landscape. As investors seek opportunity in a changing market, it’s important to explore and analyze the fundamentals that impact our industry to refine our strategy and provide value for our residents, our investors, and the communities in which we operate.
PRESS RELEASE:
This announcement is the next step in our commitment to ESG — one we officially started when we began a relationship with PRI (Principles for Responsible Investing). Our partnership with Canada Infrastructure Bank will allow us to undertake capital improvements that reduce our carbon footprint and provide comfortable homes for our residents, without compromising affordability.
WHITE PAPER:
RE-EXAMINING A HEDGE AGAINST INFLATION: Multi-family Residential Real Estate
This paper examines the effects inflation and rising interest rates have on affordability, and how investors may find opportunities in multi-family real estate.
PEER-REVIEWED WHITE PAPER:
PRIVATE RENTAL TARGET MARKETS: A COMPREHENSIVE SPECTRUM
Our founder and CEO, Anthony Giuffre, collaborated with the University of Regina’s Dr. Grant Wilson on this examination of the North American rental housing market, identifying the lifestyles, demographics, and value propositions that make up six major groups in the housing spectrum. The peer-reviewed paper was published in the International Real Estate Review in April 2022.
WHITE PAPER:
DIVERSIFICATION WITH AND WITHIN REAL ESTATE
This white paper explores how diversification in real estate portfolios — across asset types and markets — can enhance value for investors, helping them minimize risk and maximize the potential for returns.
BLOG:
WHY WE SEE OPPORTUNITY IN THE WORKFORCE HOUSING MARKET
We examined factors that make the workforce housing market an attractive investment opportunity and why it’s the focus of our multi-family strategy.
This commentary and the information contained herein are for educational and informational purposes only and do not constitute an offer to sell, or a solicitation of an offer to buy, any securities or related financial instruments. This article may contain forward-looking statements. Readers should refer to information contained on our website at https://avenuelivingam.wpenginepowered.com/forward-looking-statements for additional information regarding forward-looking statements and certain risks associated with them.
With a cycle-tested business model and a steadfast commitment to the everyday, Avenue Living continued to make great strides.
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.
After ending 2021 with just over $3.1 billion in total assets under management (AUM), the organization grew by 48% to reach $4.6 billion AUM. It achieved broadly diversified growth across its multi-family apartment, farmland, and self-storage real estate portfolios — all while staying true to its strategy of investing in the everyday.
“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.”
A win-win in the multi-family residential space
Avenue Living entered the apartment space as owner-operators in 2006 with a relentless focus on the resident experience. The company has continued to grow while offering an institutional level of service to those who call its buildings home. A pivotal strategic development was the establishment of the Avenue Living Real Estate Core Trust, which has grown into the first North American Workforce Housing Fund in just five years. Today, Avenue Living’s residential portfolio includes over 15,000 multi-family suites across 3 Canadian provinces and 5 U.S. states.
While headlines around real estate investments tend to revolve around high-growth markets — the likes of Toronto and Vancouver — Avenue Living leans into moderate growth markets, such as the Prairie provinces, where assets are valued at a relative discount. Its vertically integrated business model has also allowed it to control operational costs.
Those factors have enabled Avenue Living to responsibly raise rents in pace with higher inflation and interest rates, without hurting residential stakeholders. “We’re achieving our targeted returns while still maintaining affordability for our residents,” Millard says. “We’ve seen collections improve, occupancy continued to tick up, and we have wait lists at over 100 of our buildings.”
Growing opportunity in Canada’s breadbasket
Meanwhile, Avenue Living’s farmland holdings have expanded from 49,000 acres of Saskatchewan farmland at the end of 2021, to over 83,000 acres today.
In terms of global output, Canadian farmland represents a large portion of durum wheat, peas, and other important base crops. Saskatchewan is a big piece of the agricultural puzzle, as it accounts for approximately 40% of the cultivated acres in Canada.
“We’re witnessing a breakdown in the global food supply chain,” Millard says. “Canada has a real opportunity to be a world leader in ensuring food security.”
With a history of outperforming inflation over the past 30 years, farmland is also growing more attractive as a diversifying asset class. That’s bolstering Avenue Living’s bullish view on Saskatchewan farmland, which remains at a steep discount compared to neighbouring provinces.
Great strides in self-storage
The Mini Mall Storage Properties Trust has also cemented itself as a premier player in the secondary and tertiary markets of North America’s self-storage industry.
From just over 2 million square feet at the end of 2021, the trust has grown to nearly 6 million square feet of self-storage space. That expansion was partly driven by Avenue Living’s ability to introduce its proprietary technology stack and operating expertise into all the new locations it enters.
“A lot of innovation has happened in the primary downtown, new-development segment of self-storage over the past decade,” Millard says. “We’re taking that approach and applying it to older legacy-run assets that have traditionally operated as mom-and-pop, cash-and-paper businesses.”
Avenue Living is pushing for more growth through a new office in Dallas, where it has hired key industry leaders in the self-storage landscape.
“Our expansion into Texas has taken us from a smaller, scrappy Alberta-based company into a truly North American player,” Millard says. Mini Mall Storage is now a top 25 self-storage operator in North America.
More milestones
Above the 49th parallel, Avenue Living has arrived on Bay Street with a new Toronto office. With that new foothold in Canada’s financial hub, the company is positioned to further reinforce and broaden its capital base in the years to come.
With about $160 million in expenditures made toward capital improvements in its residential properties, Avenue Living is also sharpening its focus on maintaining a superior resident experience and providing great customer service.
After becoming a PRI signatory in 2021, the company is doubling down on sustainability through a partnership with the Canada Infrastructure Bank, which includes a $150-million co-investment on deep energy retrofits on its older-style multi-family assets.
“Real estate – especially older stock properties – represents a significant portion of GHG emissions in Canada,” Millard says. “Our goal is to reduce GHG emissions by at least 49% through deep energy retrofits”.
Leveraging its unique perspective on workforce housing, Avenue Living has also published industry-leading papers and research. That includes a peer-reviewed paper on the residential housing spectrum, which unpacks the nuances of typical renter demographics, as well as their needs in terms of rental housing.
“We’ve published a number of white papers on the importance of affordability, and how a changing cost of capital affects real estate across different markets and asset classes,” Millard says. “We’re really solidifying ourselves as thought leaders within the industry, while continuing to advocate for our residents and provide value for our investors.”
The way forward
Avenue Living has built a strong capital stack. Coupled with a diversified equity base and the use of longer term, fixed-rate debt instruments, Avenue Living is focusing on innovation and investment to ensure strong same-door performance and operations in 2023. It also plans to continue focusing on active property management to deliver the best possible results for residents and investors alike.
“We’re heading into a world with a lot of dark clouds, but we’re seeing opportunities in the market. We’re in a defensible position, and we are aiming to take advantage of any disruptions that may come,” Millard says. “2023 is going to be an interesting year globally, and a very exciting year for Avenue Living.”
This commentary and the information contained herein are for educational and informational purposes only and do not constitute an offer to sell, or a solicitation of an offer to buy, any securities or related financial instruments. This article may contain forward-looking statements. Readers should refer to information contained on our website at https://avenuelivingam.wpenginepowered.com/forward-looking-statements for additional information regarding forward-looking statements and certain risks associated with them.
Across the board, the team at Avenue Living is a curious bunch. Whether we’re catching up on industry insights, going deeper into a contemporary news story or historical event, or delving into the human condition through classic or modern literature, we’re always learning. Below, we’ve rounded up some of our team’s favourite books and podcasts from 2022.
Marius Botha, VP Fund Operations
“The Richest Man in Babylon by George Samuel Clason. It’s about a man in the third century who rises from poverty to become the richest man in Babylon. It’s all about finance and wealth planning, and there’s something for everyone to take away.”
Alexandra Larsen, Marketing Director
“I’m reading Fair Play: A Game-Changing Solution for When You Have Too Much to Do (and More Life to Live) by Eve Rodsky, which was recommended by several professional women I admire. Fair Play is about balancing the distribution of work, both paid and unpaid, for couples. Having just come back from maternity leave, I was interested to see what tips and tricks my husband, and I could pick up as working parents. I also recently finished The Storyteller by Dave Grohl, an autobiographical read about his life from scrappy backup drummer to Foo Fighters frontman, I really enjoyed learning about his life on the road, especially the Nirvana years.”
Cameron Hills, VP, Capital Markets – Equity
“Let My People Go Surfing: The Education of a Reluctant Businessman an autobiography by Yvon Chouinard, the founder of Patagonia. It explores his life experiences and philosophies that inspired his innovation as an entrepreneur. There’s something for everyone in this book.”
Janelle Donohue, SVP – Strategic Risk Management and Senior Legal Counsel
“This year I read Harry Potter and the Half-Blood Prince by J.K. Rowling, several stories in the Dragon Masters series by Tracey West, The Book with No Pictures by B.J. Novak, The Elephant and Piggie books by Mo Willems; and I Survived the Shark Attacks of 1916 by Lauren Tarshis. In my defense, these aren’t my interests—I read these ones with my three kids! I’m also reading a cookbook called Real Food Kids Will Love by Annabel Karmel.”
Max Graham, Chief Performance Officer
“I recently read the classic Casino Royale by Ian Fleming, and I’m partway through Goldfinger. I also regularly read Pivot, a magazine for CPAs, and each year I read the Urban Land Institute and PwC Emerging Trends in Real Estate report.”
Rosa Cameron, SVP People & Culture”
“Atomic Habits by James Clear. I’ve also subscribed to his 3-2-1 Thursday newsletter for the longest time, and I like his approach to continuous improvement and developing good habits on a small, incremental basis each day.”
Steve Smith, SVP Capital Markets – Debt
“I just finished American Kingpin: The Epic Hunt for the Criminal Mastermind Behind the Silk Road by Nick Bilton. It’s about Russ Ulbricht, who built a billion-dollar online drug empire. I also really liked The Only Rule is It Has to Work, by Sam Miller and Ben Lindbergh, about what happens when two baseball analytics bloggers were allowed to manage a minor league baseball team. I recently listened to Bad Blood, an audiobook about Theranos founder Elizabeth Holmes.”
Leif Snethun, CEO, Agricultural Land Trust
“Atlas Shrugged, by Ayn Rand. It’s a thought-provoking novel about a philosophy that’s still relevant today, even though it was written in the 1950s.”
Gabriel Millard, SVP, Capital Markets – Equity and Research
“I like the podcasts Macro Voices (about markets and macroeconomics), On the Margin (about asset management, macroeconomics, and ideas that were once radical are becoming mainstream); and Hardcore History (which takes a deep dive into historical events).
“I’ve been reading The End of the World Is Just the Beginning: Mapping the Collapse of Globalization by Peter Zeihan, which makes some dire predictions about how various countries will fare as globalization collapses; and the memoir Greenlights by Matthew McConaughey. I recommend you listen to the audiobook for the full experience.”
Tammy Cho, SVP, Marketing
“Educated by Tara Westover is a page-turning memoir that recounts her sheltered life in the deserted mountains of Idaho, and her father’s resistance to normal society, government, and education. Despite all this, she went to college at 17 and completed her Ph.D. at Cambridge University. I’m also listening to the Greenlights audiobook by Matthew McConaughey that documents his life’s trials and tribulations in a raw, unfiltered, and captivating way – it’s an inspirational collection of stories and insights.”
This commentary and the information contained herein are for educational and informational purposes only and do not constitute an offer to sell, or a solicitation of an offer to buy, any securities or related financial instruments. This article may contain forward-looking statements. Readers should refer to information contained on our website at https://avenuelivingam.wpenginepowered.com/forward-looking-statements for additional information regarding forward-looking statements and certain risks associated with them.
The organization demonstrates a commitment to innovation, sustainability, and customer service excellence.
Calgary, Alberta – December 7, 2022 – Avenue Living Asset Management (“Avenue Living”) has been named a gold winner for Company of the Year – Canada by the Best in Biz Awards.
By investing in the everyday and adding value to its properties, expanding the organization’s footprint, and focusing on its workforce and brand advantage, Avenue Living has demonstrated the ability to be defensible, stable, and strategic in its daily operations and long-term vision to drive value for its customers and stakeholders.
The 12th annual Best in Biz Awards saw more than 700 entries from public and private companies of all sizes and represents diverse industries and regions in the U.S. and Canada, ranging from global brands to the most innovative start-ups and local companies. This year’s judges highlighted the winning companies’ visionary leadership, innovative strides in the use of new technologies, and the adoption of workplace best practices. Many winners also continued to invest in environmental and corporate social responsibility programs.
“We’re incredibly proud of the resilience our team and organization showed throughout 2022,” says Jason Jogia, chief investment officer of Avenue Living. “Being named a gold winner for Company of the Year by the Best in Biz Awards is a testament to our team’s commitment to excellence and sustainability in the multi-family industry.”
Since the program’s inception in 2011, winners of the Best in Biz Awards have been determined by independent judging panels assembled from some of the most respected national and local newspapers, TV and radio outlets, and business, consumer, technology, and trade publications in North America. The 2022 judging panel included, among others, writers from AdWeek, Computerworld, Forbes, The Globe & Mail, Inc., The Oregonian, and Portland Tribune.
“The depth and breadth of this year’s nominees in Best in Biz Awards – and especially the winners – demonstrate savvy business acumen among the leadership and represent the type of entrepreneurship powering today’s economy,” said Dustin Klein, Smart Business, judging his first Best in Biz Awards competition.
After reviewing hundreds of submissions, the judges were impressed with Avenue Living’s growth, both in terms of employee numbers and assets under management. They highlighted Avenue Living’s focus on serving all stakeholders, including offering new features such as integrated payments through its fin-tech platform, Zenbase. Its resident retention and Google reviews clearly showcase how this has resulted in high resident satisfaction. In addition, the panel emphasized Avenue Living’s commitment to sustainability and its involvement in the United Nations-supported organization, Principles of Responsible Investment, to spearhead environmental retrofits, implement smart solutions, and update aging assets.
For a full list of gold, silver and bronze winners in Best in Biz Awards 2022, visit: http://www.bestinbizawards.com/2022-winners.
About Avenue Living Asset Management
Founded on the principle of investing in the everyday, Avenue Living focuses on opportunities that are often overlooked by others, having grown to $4.25 billion CAD in aggregate assets under management across four private real estate investment mandates. The Avenue Living team includes over 900 professionals with expertise in real estate operations and transactions, property management, research, investment origination, and capital markets, as well as a suite of subject matter experts to support Avenue Living’s growing portfolio of multi-family residential, commercial, agricultural land, and self-storage assets. In addition to 15,000 multi-family units located in Canada and the United States, Avenue Living and its related entities own over 496,500 square feet of commercial space, 82,900+ acres of productive farmland, and more than 5 million square feet of self-storage space.
About Best in Biz Awards
Since 2011, Best in Biz Awards has been the only independent business awards program judged by a who’s who of prominent reporters and editors from top-tier publications from North America and around the world. Over the years, judges in the prestigious awards program have ranged from Associated Press to the Wall Street Journal and winners have spanned the spectrum, from blue-chip companies that form the bedrock of the global economy to some of the world’s most innovative start-ups and nimble local companies. Each year, Best in Biz Awards honors are conferred in two separate programs: North America and International, and in 100 categories, including company, team, executive, product, and CSR, media, PR and other categories. For more information, visit: http://www.bestinbizawards.com.
This commentary and the information contained herein are for educational and informational purposes only and do not constitute an offer to sell, or a solicitation of an offer to buy, any securities or related financial instruments. This article may contain forward-looking statements. Readers should refer to information contained on our website at https://avenuelivingam.wpenginepowered.com/forward-looking-statements for additional information regarding forward-looking statements and certain risks associated with them.
Amid a growing wave of responsible investing, strategic partnership between Avenue Living and CIB paves the way for a greener, more sustainable future for investors and residents.
As a responsible private real estate investment manager, Avenue Living has long placed ESG at the forefront of its decisions and operations. With its focus on operating and maintaining workforce housing, as well as oversight through its flagship investment vehicle, the Avenue Living Real Estate Core Trust, the organization is no stranger to the social and governance piece of the puzzle. But several years ago, the firm saw an opportunity to go farther in its commitment to responsible stewardship. Read more about the pioneering partnership.
This commentary and the information contained herein are for educational and informational purposes only and do not constitute an offer to sell, or a solicitation of an offer to buy any securities or related financial instruments. This article may contain forward-looking statements. Readers should refer to information contained on our website at www.alamstg.wpenginepowered.com for additional information regarding forward-looking statements and certain risks associated with them.
As the chief investment officer of Avenue Living, Jason Jogia plays a key role in the firm’s strategy: looking past trophy real estate to focus on everyday assets like workforce housing, commercial real estate, farmland, and self-storage. Learn more about how Jason’s life-long fascination with real estate set him on the path to becoming Avenue Living’s CIO.
This commentary and the information contained herein are for educational and informational purposes only and do not constitute an offer to sell, or a solicitation of an offer to buy any securities or related financial instruments. This article may contain forward-looking statements. Readers should refer to information contained on our website at www.alamstg.wpenginepowered.com for additional information regarding forward-looking statements and certain risks associated with them.
Calgary, Alberta, October 18, 2022 – Avenue Living announced today it has exceeded $4.25 billion in assets under management (AUM).
Following a series of key acquisitions in its multi-family residential, self-storage, and agricultural funds, Avenue Living reported this significant milestone, representing a 4X increase to its AUM since 2018. Headquartered in Calgary, Alberta and Dallas, Texas, the organization has grown to over 900 employees in seven provinces and 13 states, with additional plans for growth on both sides of the border.
“Our business philosophy of ‘investing in the everyday’ means that we see potential in properties and markets that others often overlook,” says Anthony Giuffre, founder and CEO of Avenue Living. “We have built a scalable, defensible model that continues to perform through varying market cycles, and we have effectively institutionalized low-density property management by developing an infrastructure that is sustainable and repeatable.”
Starting in 2006 with its first acquisition of a 24-unit property in Brooks, Alberta, the journey to becoming one of Canada’s largest property owners in both the multi-family rental residential and self-storage sectors has resulted from a clear, strategic focus on the North American Heartland. The organization has a well-researched understanding of the unique demographic profile, dubbed ‘workforce housing’, which it defines as a subset of the economy earning between $15 and $50 per hour.
Jason Jogia, chief investment officer at Avenue Living states, “The days of passive income through property ownership are ending. In the largely unconsolidated markets we enter, legacy owners are looking for succession plans for their properties and businesses.” Jogia asserts that, “We find and acquire properties that are underperforming, and invest in strategic operational, capital, and technological enhancements to bring these properties up to the Avenue Living standard. These improvements not only enrich the customer experience but improve the operating performance of the property. Our growth is measured, conservative, and deliberate across the geographies we target; and the assets we choose have proven to be defensible through times of volatility.”
Avenue Living is the second largest building operator in Canada by roofline and has 10 per cent of their residential multi-family portfolio in the United States. The organization’s self-storage fund, Mini Mall Storage Properties, has grown exponentially in just over two years with over 4.6 million square feet of storage space and 56 per cent of its facilities in the U.S.. In addition, Avenue Living Agricultural Land Trust steadily grew across the Canadian Prairies, with 82,900 acres under ownership and leased as active farmland.
The organization’s focus away from ‘shiny objects’ has historically insulated the portfolio from the high highs and the low lows seen in high-growth markets. “Our growth is intentional; it creates economies of scale and scope, which continuously enhances our operational excellence,” says Gabriel Millard, senior vice president of capital markets. “We focus on markets that have historically exhibited low to moderate growth, where we use our expertise to manufacture alpha. As we see a resurgence across the North American Heartland, we are well positioned to continue capturing the upside of this economic trend.”
ABOUT AVENUE LIVING
Founded on the principle of investing in the everyday, Avenue Living focuses on opportunities that are often overlooked by others, having grown to $4.25 billion CAD in aggregate assets under management across four private real estate investment mandates. The Avenue Living team includes over 900 professionals with expertise in real estate operations and transactions, property management, research, investment origination, and capital markets, as well as a suite of subject matter experts to support Avenue Living’s growing portfolio of multi-family residential, commercial, agricultural land, and self-storage assets. In addition to 15,000 multi-family units located in Canada and the United States, Avenue Living and its related entities own over 496,500 square feet of commercial space, 82,900+ acres of productive farmland, and more than 4.6 million square feet of self-storage space.
All financial figures are in Canadian dollars.
This commentary and the information contained herein are for educational and informational purposes only and do not constitute an offer to sell, or a solicitation of an offer to buy any securities or related financial instruments. This article may contain forward-looking statements. Readers should refer to information contained on our website at www.alamstg.wpenginepowered.com for additional information regarding forward-looking statements and certain risks associated with them.
Dallas, TX, August 25, 2022
Mini Mall Storage Welcomes Brian Boulter as Senior Vice President of Acquisitions to Strategically Drive Growth From Coast to Coast
With a well-defined focus on first generation self-storage products in secondary and tertiary markets and a continued upward trajectory, Mini Mall Storage Properties (MMSP) has appointed Brian Boulter as Senior Vice President of Acquisitions. Based in the company’s Dallas location, Boulter will lead the overall acquisition strategy across North America.
In its first two years of operations, MMSP has aggressively added new acquisitions and expanded into exciting new markets, reaching over 4.1 million square feet in self-storage space, $660 million in assets under management (AUM), and setting the stage for strong future growth.
Boulter brings over 15 years of experience in self-storage asset management and acquisitions, having previously served in various executive positions at different national self-storage brands across the U.S. and Canada. Throughout his career, Boulter has developed a unique focus on acquisitions, fostered deep relationships with brokers and property owners, and led a team of acquisitions experts in best practices and strategic development.
“Mini Mall’s growth trajectory is coupled with an entrepreneurial spirit that I have not observed in the self-storage industry for a very long time,” says Boulter. “The fundamentals for self-storage are strong right now — it’s one of the best asset classes to be in as a hedge against inflation. I’m excited to join MMSP’s focused and highly strategic leadership team to successfully deliver on our clear vision and acquire stabilized properties from coast to coast.”
“As Mini Mall continues to bring stability to independent operators, our customers, and the industry as a whole, we are very fortunate to have Brian lead our team of talented acquisitions experts,” said Adam Villard, Chief Executive Officer of Mini Mall Storage Properties. “As the market shifts, I’m confident that our breadth of self-storage leaders and professionals will provide a solid foundation for us to drive ongoing value for our customers and investors.”
This commentary and the information contained herein are for educational and informational purposes only and do not constitute an offer to sell, or a solicitation of an offer to buy any securities or related financial instruments. This article may contain forward-looking statements. Readers should refer to information contained on our website at www.alamstg.wpenginepowered.com for additional information regarding forward-looking statements and certain risks associated with them.
Learn more about how Avenue Living Asset Management has secured Canada Infrastructure Bank (CIB) funding for $150 million in sustainable retrofit projects in lower-density residential buildings across Western Canada.
