Private alternative investments have really stood out in Canada over the last few years because they tend to hold up well and offer stability. They usually don’t move in sync with the stock market, which helps diversify your portfolio-something that’s pretty valuable when markets get shaky. This type of investing mixes growth opportunities with a chance to spread risk. Among these options, Real Estate Investment Trusts (REITs), especially those focused on multi-residential properties, are known for steady income and growth potential. Since 2006, Skyline Apartment REIT has been a leading private Canadian REIT owning multi-residential buildings in secondary markets, showing the kind of reliability investors want when putting money into apartment real estate.
Skyline Apartment REIT is now one of the biggest players in Canada’s multi-residential scene. It’s a solid choice for anyone wanting to protect their investments from unpredictable public markets while enjoying proven stability and consistent returns. If you want to learn more about this opportunity, check out www. skylinwealth. ca or use Fundserv code SKY2006.
Let’s look at three main reasons why Skyline Apartment REIT is favored by investors interested in Canadian housing real estate.
Strong Track Record and Reliability
Skyline Apartment REIT has shown steady results over time, holding nearly $5 billion worth of investment property at fair market value, with occupancy rates sitting steadily at 95.88%. That covers more than 22,000 units spread across 243 properties. Even between September 2022 and September 2023-a tough market period-the REIT managed an 8% rise in property values.
Since starting back in 2006, this REIT has drawn investors and advisors who appreciate dependable access to real estate combined with stable performance. Its focus on Canada’s multi-residential sector fits well within a medium-risk profile that balances reasonable returns against careful risk management.
The smart approach doesn’t stop there – Skyline also manages its finances wisely by spreading out mortgage due dates. Over 80% of its mortgage debt isn’t coming due until 2025 or later, helping it avoid getting hit hard by today’s changing interest rates. Right now, the average mortgage interest rate is just 3.17%, and total debt compared to property value (LTV) stands at about 57.40%. The average time left on mortgages before they mature is around 4.58 years.
What Makes Skyline Apartment REIT Stand Out
This REIT mainly invests in secondary markets across seven provinces and about 60 communities throughout Canada. Having such a wide geographical reach means it spreads risk across different local economies and provides homes for over 35,000 Canadians.
Choosing secondary markets was intentional since buying properties here usually costs less upfront compared to major cities-meaning better chances to add value later on. These areas also represent an important piece of the puzzle given Canada’s growing housing crisis where affordable living options are harder to find every year. Skyline Apartment REIT meets that demand head-on while maintaining steady growth and stability as part of Canada’s multi-residential investment landscape.
Tax Perks and Financial Advantages
The way Skyline Apartment REIT structures itself can help investors keep more after taxes by focusing on things like capital gains efficiency and Return of Capital (Ro C). It tries to make sure tax impacts aren’t eating into what investors earn as much as possible. Plus, redemptions happen monthly without fees which gives folks easier access to their money if needed.
Efficiency Boosts Across the Portfolio
For years now, Skyline Apartment REIT has pushed for greener operations at its properties by upgrading equipment for better electricity savings and installing submeters everywhere it can track usage closely. Water waste is another area they tackle using leak sensors along with monitoring systems that keep tabs on consumption regularly.
The parent company Skylines Group also pitches in big time: producing over 38 thousand MWh1 through solar power installed mostly right at these apartment locations; saving roughly another thirteen thousand MWh through electrical submetering; cutting down water loss by about two-thirds each month thanks to ongoing leak detection; diverting nearly quarter million kilograms of compost away from landfills; plus keeping over ten thousand pounds of e-waste out too2.
This year they kicked off a project with Natural Resources Canada (NRCan) installing more than nine hundred EV charging stations across their properties before March next year-a clear sign they’re serious about sustainability going forward.
All these efforts not only save resources but improve how smoothly everything runs which boosts overall property values-good news if you’re invested here!
Wrapping It Up
If you’re an advisor or dealer looking for solid Canadian real estate exposure that offers tax benefits along with relatively low fees (MER), Skyline Apartment REIT ticks those boxes nicely while still aiming for growth opportunities without taking too many risks.
The future might hold some bumps for Canadian housing given rising demands caused by population changes plus immigration trends-but Skyline looks ready for whatever comes next thanks to its smart strategy backed up by solid fundamentals.
1 MWh: A measurement of energy usage; the amount of energy one would use if keeping a 1,000-kilowatt machine running for an hour.
2 All figures in this paragraph are as of December 31, 2022.
About Skyline Wealth Management
Skyline Wealth Management Inc. (“Skyline Wealth Management”) connects portfolio managers and institutional investors to several private alternative investments operating in the Canadian real estate and clean energy sectors and totaling $8.2 billion in assets under management. These private alternative investments are:
Skyline Apartment REIT (Fundserv code: SKY2006)
Skyline Industrial REIT (Fundserv code: SKY2012)
Skyline Retail REIT (Fundserv code: SKY2013)
Skyline Clean Energy Fund (Fundserv code: SKY2018)
Each investment comprises a portfolio of geographically diverse assets, offering clients strong historical performance and stable distribution, low MERs, and potential diversification solutions with lower relative volatility to the public markets.
Visit Skyline Wealth. ca for more information.
Disclaimer for Skyline Wealth. ca:
Skyline Wealth Management Inc. (“Skyline Wealth Management”) is an Exempt Market Dealer registered in all the provinces of Canada. The information provided herein is for general information purposes only and does not constitute an offer of securities. Sales of interests in any investments offered by Skyline Wealth are only made to certain eligible investors pursuant to regulatory requirements and available exemptions.
Commissions, trailing commissions, management fees and expenses all may be associated with investments in exempt market products. Please read the confidential offering documents before investing. There is no active market through which the securities may be sold, and redemption requests may be subject to monthly redemption limits. Exempt market products are not guaranteed, their values change frequently, and past performance may not be repeated. Nothing in this email should be construed as investment, legal, tax, regulatory or accounting advice. Prospective investors must make an independent assessment of such matters in consultation with their own professional advisors.
Some of the investment products offered by Skyline Wealth are from related issuers. A full list of issuers related to Skyline Wealth and details of the relationship between them is available upon request.
The information contained within is disseminated by Skyline Wealth Management Inc. (“Skyline Wealth”) on behalf of the Issuer as at the date of publication and Skyline Wealth does not undertake to advise the reader of any changes. The opinions and statements expressed within are of those of the Issuer and do not necessarily reflect those of Skyline Wealth. Skyline Wealth has not taken any steps to verify the accuracy or completeness of the information provided herein.
