District Property Trust

Why Private REITs Like District™ Shine in an Uncertain Market

oree — Mon, 14 Apr 2025 17:54:28 +0000

Why Private REITs Like District Shine in an Uncertain Market

No matter what’s happening in the world, real estate remains one of the most reliable and time-tested ways to build wealth. And by investing as a unitholder—not a landlord—you can unlock even greater certainty and returns, without the stress of ownership.

Carmen Campagnaro, principal and trustee of District Real Estate Investment Trust (REIT) and Nick Wright, securities lawyer and founder of Startly Inc., recently shared how investing in a REIT is an easy, stress-free way to add real estate to your portfolio.

Q: What are the benefits of investing in a REIT over direct ownership?

“Through a REIT like District, investors gain access to a diversified portfolio of residential, commercial, and industrial properties—without the need to qualify for a mortgage or manage tenants,” says Carmen Campagnaro, Principal and Trustee of District REIT.

“At District, your portfolio is managed by professionals, with a five-year historic annual distribution of 8%*, paid monthly. Investors can also participate in the Distribution Reinvestment Plan (DRIP), which has delivered over 15%** average annual returns over five years—including asset value growth and rising unit prices.”

Q: What is the DRIP and how does it benefit investors?

“With the DRIP, investors can reinvest monthly distributions instead of taking them in cash,” explains Wright, “It allows your investment to grow faster through compounding, and those who do so enjoy a 2*** per cent bonus on the distribution amount.”

“District REIT is also Registered Funds eligible, meaning RRSPs, TFSAs, and other plans can participate in the DRIP,” adds Carmen Campagnaro. “Your money is never sitting idle—it’s always working for you. “In today’s economy, that kind of performance really matters.”

Q: Why invest in a REIT over the stock market?

“Real estate is bricks and mortar—tangible, essential, and historically stable—which brings me comfort,” says Campagnaro. “Stocks can swing wildly based on headlines or global events. Real estate doesn’t react the same way—it generates steady income and holds long-term value. Especially in today’s climate, investors are looking for something grounded. Through a REIT like District, you get exposure to strong, income-producing properties without the day-to-day management or the unpredictability of the stock market.”

Q: How can people get into a REIT?

“Investments are made through Startly Inc. as Exempt Market Dealer. The minimum investment is $10,000 and through the investor onboarding process we can determine the total amount you are eligible to invest, says Wright.

Whether you’re looking to diversify your portfolio, generate passive income, or maximize your investment potential, District REIT offers a hassle-free way to enter the real estate market. Get started today by contacting info@DistrictReit.ca or visiting DistrictReit.ca to learn more.

*No assurances can be given that the Target Return or Target Portfolio Appreciation will be achieved; see the full offering materials for detailed terms and conditions.

**Assuming an investment was on DRIP, and was invested 5 years ago, the average annual return was 15.35% or 1.28% monthly including capital appreciation. This assumes the compounding impact of the DRIP and the unit price increases seen since 5 years ago.

***Investors that elect to participate in the DRIP should consult their own tax advisors for advice with respect to the income tax consequences of participating in the DRIP.

The post Why Private REITs Like District™ Shine in an Uncertain Market first appeared on District Property Trust.

District REIT™ offers stability, high returns and tax efficiency for savvy investors – Financial Post

oree — Thu, 23 Jan 2025 15:04:17 +0000

District REIT offers stability, high returns and tax efficiency for savvy investors – Financial Post

Investing in real estate has long been a cornerstone of wealth building, but the challenges of property ownership can deter many from this asset class. District Property Trust — known as District REIT — is a private real estate investment trust (“REIT”), which offers an appealing alternative for investing in real estate: it provides exposure to income-generating real estate without the stress of direct ownership and property management.

A real estate investment trust (“REIT”) is a legally-recognized vehicle specifically designed to own, operate and finance income-producing real estate across a broad range of property sectors, explains Carmen Campagnaro, principal and trustee of District REIT.

As a private Canadian REIT, District REIT, holds a diversified portfolio of multi-family residential, commercial and industrial real estate in southwestern Ontario.

One key strength of District REIT lies in its portfolio, being heavily weighted in the multi-family real estate sector, which Campagnaro describes as “resilient during economic downturns”.

One of District REIT’s recent acquisition, comprising seven multi-family apartment buildings in urban Toronto, significantly elevated its portfolio weight in the residential segment. This strategic purchase provides substantial potential for appreciation and returns.

“People always need a roof over their heads. Having a majority of our portfolio in multi-family properties has created excellent cash flow for District REIT,” Campagnaro says. In addition to reliable income, unit-holders also enjoy the potential for capital appreciation.

Furthermore, District REIT’s commercial and industrial portfolio includes strategically located neighbourhood plazas and industrial sites that supply a wide region, delivering strong yields and above-average returns for investors. Industrial properties have a strong demand, and rental rates are at a premium. This commercial and industrial portfolio is thoughtfully balanced by the larger multi-residential portfolio designed to provide long-term stability and security.

According to Nick Wright, a securities lawyer and principal of exempt market dealer Startly Inc., REITs can be part of a powerful, tax-efficient investment strategy.

“REITs are flow-through entities that avoid double taxation with tax payable only at the investor level. By contrast, a corporation is taxed on its corporate income and then the investor is taxed again on dividend distributions. A flow-through REIT can reduce tax liability and increase overall return on investment.”

Private REITs also offer significant tax advantages. As flow-through entities, income is taxed only at the investor level, avoiding the double taxation faced by corporations. Distributions often include Return of Capital (ROC), deferring taxes until units are sold, and capital gains, taxed at lower rates.

Campagnaro highlights the advantages of private REITs over public ones.

“A private REIT isn’t dictated by the stock market. Instead, investors are buying into the ownership of tangible, bricks-and-mortar assets.” Private REITs like District provide a more stable, high-yield opportunity for Canadians seeking long-term wealth growth as the unit price is based on asset values, rather than on stock market fluctuations. Private REITs offer access to unique investments and are focused on longer term investment horizons leading to stronger performance over time.

Distributions are paid out monthly and an investor can participate in the Distribution Reinvestment Plan (DRIP), “which means reinvesting the distribution you earn monthly to benefit from compounding returns.” says Wright.

The REIT has consistently distributed eight per cent annually over the past five years, with additional potential for capital appreciation. Investors participating in the DRIP enjoy additional benefits, as they earn compounded returns. The combination of the DRIP and the capital appreciation has averaged a return of over 15 per cent annually in the past five years for District REIT investors.

With a minimum investment of $10,000 in District REIT, individuals can diversify their portfolios and access tax-efficient returns through any registered funds, such as a Registered Retirement Savings Plan (RRSP), Registered Education Savings Plan (RESP) or Tax-Free Savings Account (TFSA).

The post District REIT™ offers stability, high returns and tax efficiency for savvy investors – Financial Post first appeared on District Property Trust.

Webinar Watch Now: Maximize Returns Through Passive Real Estate Investing

oree — Sun, 22 Dec 2024 19:59:59 +0000

Webinar Watch Now: Maximize Returns Through Passive Real Estate Investing

District REIT is featured in this previously recorded live webinar from 30 Minutes to Wealth Real Estate Talk Show, with hosts Carmen and Jordan Campagnaro.

Discussing the world of passive real estate investing, they share their knowledge and practical insights on how to leverage this investment strategy to create a sustainable income stream and build wealth over time.

Joined by Nick Wright, Securities Lawyer and Registered Exempt Market Dealer from Startly Capital, they uncover how to invest in today’s real estate market without active management and also review a selection of featured investment offerings including District REIT.

The post Webinar Watch Now: Maximize Returns Through Passive Real Estate Investing first appeared on District Property Trust.

Q3 2024 Market Insights: Navigating Housing Trends, Rate Shifts, and Rental Dynamics

oree — Fri, 01 Nov 2024 20:12:08 +0000

Q3 2024 Market Insights: Navigating Housing Trends, Rate Shifts, and Rental Dynamics

September 2024 showed continued signs of recovery in Canada’s housing market, following the Bank of Canada’s third consecutive interest rate reduction earlier in the quarter.

The overall Canadian MLS System reported a 1.9% increase in home sales from August to September 2024.

CREA’s Senior Economist, Shaun Cathcart, noted that while the market remains in a holding pattern, the pace of rate cuts is expected to be faster than previously thought. This could lead some potential buyers to hold off on purchases for now, potentially boosting the rebound expected in early 2025.

Key Points

National home sales rose 1.9% month-over-month in September.
Actual monthly activity was 6.9% higher than September 2023.
The average price of a home sold in September was $669,630, up 2.1% from September 2023.
CREA forecasts a 5.2% increase in property sales for 2024

By September 2024’s end, 185,427 properties were listed on Canadian MLS® Systems, up 16.8% from the previous year but still below the historical average of around 200,000 for this period.

The national aggregate home price rose a modest 1.6% year-over-year in Q3 2024, but decreased 1.1% compared to Q2.

CREA Chair James Mabey stated that the housing market is expected to remain in a holding pattern until next spring.

Despite some improvement, housing supply remains a significant issue. The number of properties listed for sale across Canada at the end of September was still below historical averages. Looking ahead, Royal LePage expects home prices to remain stable through Q4, with a potential pull-ahead of the spring market due to anticipated continued easing of lending rates.

Interest Rate Cuts and Mortgage Renewals

The Bank of Canada will likely cut interest rates by a full percentage point by the end of this year.

With inflation excluding shelter costs already slipping below the central bank’s target range and joblessness rising to a decade high, policymakers may opt to reduce policy by 50 basis points at each of their next two meetings, according to Stéfane Marion, chief economist and strategist at National Bank of Canada.

He said that’s because the central bank’s goal is now to bring the key policy rate — currently at 4.25% — to the so-called neutral rate, where it neither stimulates nor restricts economic growth.

“We all know that the neutral rate is closer to 3%. You have to get to 3% as quickly as possible,” Marion said Wednesday at the Bloomberg Canadian Finance Conference in New York. “How low we’re going to get below 3% remains to be seen but the first step is for the Bank of Canada to bring us to 3% now. We needed to be there yesterday.”

Subsequent to quarter end, the Bank of Canada cut interest rates by 50 basis points to an overnight rate of 3.75%. The bank’s following and final rate decision this year is on Dec. 11.

In September, the consumer price index eased to 1.6%, undershooting the 2% target for the first time in more than three years. But taking out shelter costs, the rate fell to 0.4% last month, which is even lower than the central bank’s target range of 1%-3%.

Impact of Immigration on the Canadian Economy

The country’s record population surge is one of the key reasons behind elevated shelter inflation as arrivals of new residents exacerbated housing shortages. Since 2022, the country has added more than three million people.

Immigration also led to rapid labor force growth, which has been eclipsing monthly job gains over the past year.

Despite its short-term challenges, Canada is well-positioned for future growth, Marion said. The country’s cheap and abundant electricity could support demand from the artificial intelligence sector and its grid is already one of the world’s cleanest.

It also has a fiscal advantage because its pensions are better funded than many countries, which means the government likely won’t surprise corporations with special taxes to make up for any unexpected shortfalls, he said.

Commercial Market Review and Outlook

Persistently low vacancy in the GTHA are reshaping the industrial real estate market. Q3 2024 stood out as one of the stronger quarters in the past year, with vacancy rates edging up by just 10 bps quarter-over-quarter (QOQ) to 3.8%— the smallest quarterly increase since the end of 2022. Sublease activity slowed as well, with an additional 62,000 square feet (sf) of available space, marking the lowest quarterly increase since mid-2023. A significant factor behind the vacancy uptick were spaces under 50,000 sf, with 133 new listings making up 38.5% of total new availability.

The rapid rent growth of 2021 and 2022, where the annual growth rate peaked at 49.3%, has gradually transitioned to a downward trend. In the past quarter, the average net asking rent fell by 2.4%, decreasing from $18.07 per square foot (psf) to $17.64 psf. This marked the second decline of the year pushing the year-over-year (YOY) change to -3.7%, a trend not recorded in over 14 years. Most of the downward pressure came from older buildings, primarily those constructed before 1990, while reductions in new properties built after 2000 were rare, with only three recorded instances.

With respect to the Office real estate market, employment tends to be the biggest driver of fundamentals. Employment in Ontario rose by 0.5% in September, led by gains in full-time positions. This continues an upward trend that started at the end of 2023, with cumulative job growth reaching 198,000 (+2.5%). The unemployment rate fell by 0.2% to 6.9% in September, though it’s still up 0.9% compared to the same time last year. Ontario’s economic growth is expected to slow more than any other province this year, influenced by weaker U.S. growth and sluggish domestic consumption and investment. GDP is projected to grow by 0.7%, marginally above the June estimate of 0.5%.

The Greater Toronto Area (GTA) office market is transitioning into a new phase in this cycle, and 2024 is poised to be a distinctly different year. Although downtown vacancy rates remained near record highs, quarterly trends indicate a more stable market as the extreme volatility of the past four years gradually eases. This past quarter, vacancy inched up marginally by 10 basis points (bps) to 17.2%, maintaining the 17% range for a third consecutive quarter. The average quarterly uptick this year was 40 bps, significantly lower than the larger jumps of 70 bps in 2023 and 100 bps in 2022.

The suburban office market is achieving stability earlier. This quarter, suburban vacancy in the GTA held steady at 16.7%, while downtown continued to post increases. Suburban vacancy has averaged a decrease of 10 bps this year, marking the third consecutive quarter it has been lower than downtown’s—a streak not seen in over two decades. The GTA West market has significantly influenced suburban performance, with vacancy steadily declining since the end of 2022, reaching a four-year low of 15.6%.

Greater Toronto Area (GTA) Apartment and Condo Rental Market

The rental market continues to show overall strength but has begun to slow year over year. Asking rents for all residential property types in Canada during September increased 2.1% from a year ago to an average of $2,193, representing the smallest year-over-year increase since October 2021.

The annual rate of rent growth in Canada moderated for the fifth consecutive month, slowing substantially since May when rents were rising by more than 9% per year. However, average asking rents were 13.4% higher than two years earlier and 25.2% higher than three years earlier during COVID-19.

The deceleration in rents coincides with a significant cutback in net inflows of non-permanent residents.

Average rents in Toronto are currently at $2,402 for 1-bedroom units and $3,133 for 2 bedroom units. Asking rents for condominium apartments in September were down 8.2% year over year. Condo rents in Toronto were $2,745 on average in September 2024, down 7% year over year. Condo rents were down compared to a year ago across all unit types except for three-bedroom units, with studio units recording the largest decline.

Across all of Ontario, asking rents for purpose-built and condominium apartment rents declined 4.3% to an average of $2,380.

Over the past year, shared accommodations have gained popularity among both renters and landlords, evidenced by a 48.7% year-over-year rise in the number of listings. The types of properties being listed vary significantly, with distinct trends emerging in specific markets.

The GTA has experienced a notable increase in condo units where owners are subletting spare bedrooms. Suburban communities across Ontario have experienced a growing number of basement units being offered for rent. In several cities, this phenomenon was characterized by the subdivision of basement units into smaller studio apartments. Within the 905 region of the GTA and outlying suburban communities, there has been an increase in single-family homeowners renting out individual bedrooms within occupied homes, likely as a means to offset rising mortgage payments and as a result of the record population growth experienced in the province in the last several years.

The post Q3 2024 Market Insights: Navigating Housing Trends, Rate Shifts, and Rental Dynamics first appeared on District Property Trust.

Survey Reveals Canadian Investors Show Confidence in Real Estate Over the Stock Exchange, Heading Into 2024

oree — Fri, 19 Jan 2024 18:57:26 +0000

Survey Reveals Canadian Investors Show Confidence in Real Estate Over the Stock Exchange, Heading Into 2024

TORONTO, January 18th, 2024 – The desire to invest in Canadian Real Estate is evident, as Canadians continue to look to the property market as a means of building generational wealth and an additional source of income, and many are planning to try their hand at real estate investing within the coming years. According to a recent survey conducted by Valour Group, District REIT, and Pro Funds Mortgages, part of the One Real Estate Enterprise group of companies, Canadians are strongly engaged in real estate investing, illustrating the nation’s strong inclination towards property ownership.

Key Survey Highlights:

87% of respondents feel more comfortable investing in real estate compared to publicly traded stocks.
76% of Canadian real estate investors actively own properties beyond their primary residence.
Canadian real estate investor sentiment heading into 2024 is positive with 82% of Canadians expressing an optimistic or selective approach, while only 18% are taking a more passive stance.
Purpose-built rentals emerge as the most sought-after real estate investment, with an overwhelming 73% of Canadians expressing interest. Single-family homes follow closely at 50%, and condominiums at 42%.
62% of respondents express increased interest in Canadian real estate markets, and 15% show increased interest in US real estate markets. In contrast only 23% indicate decreased interest in real estate overall.
Heading into 2024, 69% of investors plan to reinvest real-estate profits upon maturity, while 25% prefer to wait before reinvesting and 6% do not intend to reinvest upon maturity.
80% prefer passive real estate investments including private mortgage lending, real estate-focused equity or acquisition funds, while just 19% prefer active property ownership.

One Real Estate Enterprise – 2024 Real Estate Investor Outlook Report – Data chart

Canadian Investor Pulse

The findings from the survey provide a snapshot of the current real estate investor landscape in Canada. The results depict a thriving real estate landscape, with a positive outlook for 2024 onwards, positioning Canada as an attractive investment market. The survey showed that heading into 2024, 29% of Canadians express optimism, while 53% adopt a selective approach, and only 18% are taking a passive stance. Despite economic uncertainties and global challenges, the Canadian real estate market remains resilient, fueled by the steady desire for homeownership and investment. This is made evident by only 6% of investors not intending to reinvest, while an overwhelming 69% of Canadian investors plan to immediately reinvest their deployed real estate-related capital upon maturity.

Forward-Looking Investor Appetite

There is a keen interest by investors in purpose-built rentals at 73%; also, a strong preference for single-family homes, and condominiums is to be expected with the housing shortage being faced across Canada. This is accentuated by the substantial percentage (62%) of Canadians expressing increased interest in Canadian real estate markets despite a slow 2023. Canadians are aware of the need for affordable housing to cater to Canada’s increasing population and they are looking to capitalize as supply begins to meet demand.

Canada’s real estate investors are also seeking more passive investment vehicles in 2024, rather than active ownership. 34% of investors share their preference to invest in private mortgage lending, while 47% favour real estate-focused equity or acquisition funds, two frequently overlooked avenues for prospective real estate investors. Surprisingly a low 19% of investors are considering expanding their direct real estate ownership portfolio in 2024.

The overwhelmingly positive sentiment is demonstrated by 87% of Canadians feeling more comfortable investing in real estate than publicly traded stocks, underscoring Canada’s position as a highly sought-after, and safe destination for real estate investments. The stability and growth potential offered by the Canadian real estate market makes it an attractive choice for both seasoned and aspiring investors.

As Canada welcomes an increasing number of immigrants in the coming years, investors are expected to play a pivotal role in supplying funding for much-needed housing units, further solidifying their importance in the Canadian real estate ecosystem. For those considering real estate as a part of their investment portfolio, the survey emphasizes the importance of expert advice to navigate the dynamic landscape successfully.

One Real Estate Enterprise – 2024 Real Estate Investor Outlook Report – Data chart

About Valour Group, District REIT, Pro Funds Mortgages and One Real Estate Enterprise

Pro Funds Mortgages, Valour Group, and District Property Trust are part of One Real Estate Enterprise, a vertically integrated group of companies that provide a wide range of real estate-focused services and products. Valour Group is an integrated team of companies that manages, develops, constructs, and operates residential and commercial real estate. Pro Funds Mortgages is a mortgage brokerage that specializes in mortgage investments, commercial financing, and private lending. District Property Trust is a privately held Real Estate Investment Trust (REIT) specializing in income-generating real estate across residential, commercial, and industrial properties. This vertically integrated, 360-degree structure enables management to maintain a pulse in each aspect of the industry while controlling cost and profitability, ensuring continued success.

Learn more at: ValourGroup.ca | Profunds.ca | DistrictREIT.ca | OneEnterprise.ca

Disclaimer

Nothing featured in this communication should be construed as a recommendation or an offer to sell, or a solicitation of an offer to buy any securities. Obtaining professional financial, tax and legal advice is highly recommended before making any investment decisions.

The post Survey Reveals Canadian Investors Show Confidence in Real Estate Over the Stock Exchange, Heading Into 2024 first appeared on District Property Trust.

Market & Real Estate Update

oree — Tue, 21 Nov 2023 15:08:33 +0000

Market & Real Estate Update

The Valour Group development at 301 Westmount in Kitchener remains on schedule for completion in April 2024 and will provide 85 residential suites complete with amenity spaces and 12,000 sq. ft. of ground-floor commercial space.

In the midst of the fall season’s colourful transformation, the Canadian real estate market forges ahead, offering buyers and sellers some stability. In September, the national average home price in Canada experienced a 1% increase from the prior month and is up 2% from last year. This stability in pricing can be partially attributed to the Bank of Canada maintaining policy interest rates at 5% over the past few months.

In September, 37,685 homes were sold in Canada, representing an 8.0% increase when compared to last year. Canada’s MLS benchmark price, which represents the standard price of a Canadian house, stood at $741,000. Notably, Canada’s sales-to-new-listings ratio (SNLR) reached 51% in the month of September. A SNLR of above 60% represents a seller’s market and a SNLR of less than 40% represents a buyer’s market. While the market is mostly in balance, in some regions it slightly favours sellers over buyers.

Real Estate Market

The Canadian real estate market has had some significant adjustments. In September, there was a modest increase of 6.3% in newly listed properties compared to the previous month. The MLS Home Price Index decreased by 0.3% compared to the previous month but has increased by 1.1% when comparing it to last year. Additionally, the actual national average sale price saw a 2.5% rise compared to last year. As a result of the interest rate increases this summer, national home sales in September declined by 1.9% compared to August.

The introduction of bill C-56, also known as the Affordable Housing and Groceries act, on September 21, 2023, is expected to have a significant impact on the Canadian real estate market. This legislation will effectively raise the GST Rental Rebate from 36 percent to 100 percent and would eliminate the current GST on rental construction nationwide. The main objective of this bill is to provide affordable rental units to Canadians by stimulating the development of additional apartment buildings, student housing and senior residences.

In addition to the introduction of bill C-56, the Ontario Government announced the complete removal of the 8.0% HST on new rental housing developments on November 1^st. The removal of the HST is an initiative by the Ontario Government aimed at further encouraging the development of rental construction projects, making them more economically viable while simultaneously providing more affordable housing for Ontarians. Projects eligible for the HST removal must have a minimum of four units or ten private rooms, and must commence construction between September 14, 2023, and December 31, 2030, with construction completed no later than December 31, 2035.

While positive activity in the supply for real estate was displayed in the month of June, with a 5.9% month-over-month increase, a perpetually decreasing supply of construction labour and increasing month-over-month sales signifies a tighter real estate supply and a positive trend in real estate market transactions through to the latter half of the year.

Canadian Economy

The Canadian labour market experienced minimal change in September. After falling in August, the employment rate showed a modest 0.1% increase in September. Similarly, the unemployment rate which had risen by 0.5% to a total of 5.4% in August, declined by 0.2% in September to an unemployment rate of 5.2%. The small changes witnessed in the employment and unemployment rates show a current stability within the labour market.

Immigration continues to play a key role in supporting the Canadian economy. Due to Canada’s significant aging population, Canada has been increasing its immigration targets for the past 30 years to help support economic growth. Canada’s target for new permanent residents (PRs) in 2023 is 465,000, with many of these new PRs being economic immigrants intended to help boost Canada’s economy. Currently, Canada’s immigration stands at 1.2% and at this rate, Canada accepts three times as many immigrants per capita as the United States of America.

Inflation and Monetary Policy

On October 25th, the Bank of Canada announced its decision to continue to hold interest rates steady at 5%, as it had done previously over the past two months. Additionally, the bank of Canada hinted at the possibility of future increases should inflation persist. This announcement came in the wake of the Consumer Price Index’s decline, which fell from 4.0% in August to 3.8% in September, signalling a slowdown in growth. As we transition into the fall season, our team is committed to closely monitoring the market to provide valuable insights to our investors and essential stakeholders.

The post Market & Real Estate Update first appeared on District Property Trust.

District™ REIT Expands Its Presence with a Game-Changing Off-Market Acquisition in Toronto

oree — Tue, 31 Oct 2023 16:26:00 +0000

District REIT Expands Its Presence with a Game-Changing Off-Market Acquisition in Toronto

TORONTO, October 31st, 2023 – District Property Trust, known as District REIT, is thrilled to announce its successful acquisition of a portfolio of multi-residential apartment buildings, for an aggregate price of $70 million (roughly $5 million below its as-is appraised value), in the highly coveted Urban Toronto. The transaction, finalized on October 31, 2023, marks a momentous achievement for District REIT, its investors, and its sister company, Valour Management Inc., which oversees the current property portfolio.

This acquisition signifies a substantial addition to District REIT’s portfolio and represents its inaugural expansion into the Toronto market. The purchase, secured below market value, provides substantial potential for appreciation. Strategic initiatives are underway to revitalize and to lease unrenovated and under-market units within the next 24 months, placing the acquired portfolio in prime position to achieve its appraised value of $106.8 million upon full stabilization.

These properties not only complement the existing portfolio but also offer exciting prospects for further growth and community development. District REIT views its entrance into the Toronto market as a transformative endeavour, reshaping urban living. District Property Trust’s commitment remains unwavering in creating thriving, inclusive communities that prioritize residents’ well-being and satisfaction while delivering quality returns to investors.

About District REIT

District REIT is a privately held Real Estate Investment Trust (REIT) specializing in income-generating real estate across residential, commercial, and industrial properties. Recognized for its strategic acquisitions, District REIT is dedicated to delivering consistent returns to its investors while maintaining a high-quality real estate portfolio. In 2022, District REIT investors enjoyed returns of 18%, encompassing 8% annual returns paid monthly and 10% investment appreciation.

Unitholders benefit from the capital appreciation of District REIT’s assets through ongoing management and value-creation strategies. Notably, District REIT is not publicly traded, and unit prices are calculated annually, providing stability amidst daily market fluctuations. The net asset value of the REIT is directly tied to the market value of the underlying real estate assets.

Impact on Stakeholders

This acquisition is poised to have a positive impact on various stakeholders, including tenants, employees, and investors. Residents can anticipate a high-quality living experience, while employees will enjoy expanded opportunities within the District REIT & Valour group of companies. Investors can anticipate substantial appreciation in unit value and continued monthly distributions.

About The Management Team

District REIT’s Founders and Trustees, Carmen Campagnaro and Richard Hall possess over six decades of combined experience across various facets of the real estate industry. Their other enterprises include Pro Funds Mortgages, Valour Capital, Valcon Construction, and Valour Management. Pro Funds Mortgages is a brokerage specializing in commercial and private lending. Valour Capital is a development company focused on multi-residential and commercial rentals. Valcon Construction builds multi-residential buildings, commercial and industrial developments for Valour Capital. Valour Management Inc. is the asset and property manager for the District REIT portfolio. This 360-degree structure enables management to maintain a pulse in each aspect of the industry while controlling cost and profitability, ensuring continued success.

Learn more at: ValourGroup.ca | Profunds.ca | ValourConstruction.ca

Integration and Future Plans

District REIT and Valour Management are fully committed to ensuring a seamless integration process. Residents and tenants can expect minimal disruptions as both organizations diligently work to enhance the living experience and introduce new amenities and services.

Carmen Campagnaro and Richard Hall, through their group of companies, have a well-defined strategy to address the housing crisis throughout Ontario. The province currently faces a significant challenge in providing affordable and accessible housing, which will become even more critical with over 5,000,000 new immigrants anticipated to migrate over the next decade, as reported by Finance Minister Peter Bethlenfalvy on November 1^st, 2023. Affordability, environmental efficiency, and the provision of a unique and high-quality living experience for tenants are the cornerstones of District REIT’s future.

Classified as an exempt market product by the Canadian Securities Regulators, prospective investors are encouraged to contact District REIT’s securities dealer for investor qualification requirements.

The post District™ REIT Expands Its Presence with a Game-Changing Off-Market Acquisition in Toronto first appeared on District Property Trust.

The Private Income-Producing District REIT™ Celebrates a Year of Successful Acquisitions Despite Economic Climate

oree — Fri, 13 Jan 2023 21:44:35 +0000

The Private Income-Producing District REIT Celebrates a Year of Successful Acquisitions Despite Economic Climate

With the addition of multi-residential, commercial, and industrial portfolios, District REIT nearly doubles its gross asset value – reaching $167 million.

BURLINGTON, January 13, 2023 – With the recent acquisition of more than 170 commercial and residential units, District Property Trust (District REIT) closed out 2022 by nearly doubling its gross asset value to $167 Million.

The new properties, located in Owen Sound, Brantford, Ayr, and London, Ontario, deliver immediate growth to District REIT’s portfolio of properties, increasing the total number of units in District REIT’s portfolio by more than 100%, its total assets by more than 70%, and its investment property by more than 90%.

The acquisition demonstrates District REIT’s ability to create value through creative deal-making, explains Carmen Campagnaro, Principal and Trustee of District REIT. “The beauty of the deal is the creative structuring,” she says. “Many companies can go out and buy real estate, but it’s the structure and creativity of the deal that delivers a return, and that’s what happened here.”

South Bruce Industrial Collection, purchased for $17 million in September 2022, is a portfolio of properties in Owen Sound, Ontario. The portfolio consists of 12 commercial and industrial properties with a gross leasable area of 173,530 sq.ft. and 49.5 acres of land. With the South Bruce acquisition, District REIT is excited to add industrial real estate to its holdings, a move that expands and diversifies its portfolio. Additionally, this portfolio has an established local management team, no vacancies, a tenant waiting list, and produces a positive cash flow.

“From a cash flow perspective, this property is excellent,” says Campagnaro. “Additionally, there is another 60,000 sq.ft. that can be developed that will generate millions of dollars of additional value for the REIT.”

Westbridge Collection, purchased in May of 2022 for $13 million, consists of four multi-residential properties with 53 residential units stretching over 10,000 sq.ft. in Brantford, Ontario. The four properties included have historical architecture and have been converted or renovated to residential assets. Prior to acquiring, the majority of the portfolio had vacancies and below market rents, which provided immediate upside in creating value for the REIT.
These properties remain as one of the few with three- and four-bedroom suites in the downtown area—a benefit to families looking for rentals.

Wish at Windsong, a new construction, two-building rental property with 61 residential units at 170 and 180 Northumberland Street in Ayr, Ontario, delivers tenants with high-end rentals featuring in-suite laundry, modern finishes, and easy access to Highway 401. Purchased in April of 2022, Wish at Windsong fortifies District REIT’s investment property value by increasing the total residential units and total assets in the portfolio.

Wharncliffe Medical Plaza, in London, Ontario, occupies the busy intersection of Wharncliffe Road North and Oxford Street West. The Plaza, consisting of 25 commercial units, was purchased in June 2022 for $10.2 million. The property, a site for dentists, pharmacists, a chiropractor, cardiologists, and other high-value professional tenants, sits between Western University, University Hospital, and St. Joseph’s Hospital, making it a high-performing multi-residential asset.

Now in 2023, District REIT continues to mine opportunities to create value for investors. One strategy is to focus on the acquisition of multiple affordable housing properties, with a selection of portfolios already targeted for the REIT, as well to continue satisfying the demand for more rentals.

“There’s a waiting list to get into the rentals we’ve recently acquired,”Campagnaro says. “We’re renting to trades, like electricians and plumbers and manufacturers, as well as new Canadians looking for a place to raise a family.”

“We see an enormous opportunity to deliver value to both the REIT and to our tenants.”

About District REIT

District Property Trust, also known as District REIT, is a private Real Estate Investment Trust that owns and operates a portfolio of diversified income-producing real estate along with real estate mortgage investments.

As unit holders, investors benefit from the capital appreciation of District REIT’s assets through ongoing management and value creation strategies. As a Canadian entity, District REIT seeks to acquire Canadian properties with a primary focus on emerging secondary and tertiary markets within Southern Ontario.

As a private REIT, District REIT is not traded on a public exchange. Unit prices are calculated quarterly, offering ease from daily fluctuations. The net asset value of the REIT is based directly upon the market value of the underlying real estate assets.

District REIT is classified as an exempt market product by the Securities Regulators in Canada, and interested investors should contact District REIT’s securities dealer for investor qualification requirements.

District REIT is RRSP eligible with a minimum investment of only $10,000, offers a tax-advantage structure, and a distribution reinvestment plan (DRIP).

The post The Private Income-Producing District REIT™ Celebrates a Year of Successful Acquisitions Despite Economic Climate first appeared on District Property Trust.

Watch Now: Passive Investing in a REIT featuring District REIT

oree — Wed, 29 Jun 2022 18:06:13 +0000

Watch Now: Passive Investing in a REIT featuring District REIT

District REIT was featured in an episode of 30 Minutes to Wealth. This episode talks about what a REIT is, how the structure and returns work, private vs public REITs, qualification criteria, risk, and how to get started with only a minimum investment of $10,000.

In this episode of 30 Minutes to Wealth, hosts Carmen & Jordan Campagnaro meet with District REIT and Luan Ha, Exempt Market Dealer at Fundscraper Capital Inc., to discuss real estate investment trusts (REITs).

30Minutes to Wealth is part of the District REIT group of companies.

The post Watch Now: Passive Investing in a REIT featuring District REIT first appeared on District Property Trust.

Renovation Updates at McClary Apartments

oree — Tue, 24 May 2022 20:03:01 +0000

Renovation Updates at McClary Apartments

A glimpse into the latest updates on the ongoing McClary Apartments renovation. The renovation features include new fully-equipped kitchens, open-concept living spaces, bright bedrooms, and modern bathrooms.

This information is provided for general informational purposes only. This newsletter does not constitute an offer of, or solicitation for, the purchase and sale of any securities under any circumstances. Please read the confidential offering documents before investing, as they contain important information on fees and risk factor. Nothing herein should be construed as investment, legal, tax, regulatory, or accounting advice. Professional advice should be obtained with respect to any investment. Any past or targeted performance is not indicative of future performance and there can be no assurance that District REIT will achieve comparable results, that targeted returns will be met, or that District REIT will be able to implement its strategy or achieve its investment objectives. While we believe this information is accurate, District REIT and its affiliates cannot attest to the validity of information culled from other sources and cannot guarantee that it is always current or complete. The information contained is subject to change without notice and we cannot be held liable for any loss arising from any use of or reliance on the information contained in this newsletter.

The post Renovation Updates at McClary Apartments first appeared on District Property Trust.