Michael Brooks, Chief Executive Officer, Real Property Association of Canada
Rael Diamond
Rael Diamond, President & CEO, Choice Properties REIT
A wide-ranging discussion among portfolio and money managers on their views of the Canadian real estate market, whether this is a good time to buy, sell or hold REIT units and REOC shares, and what are the key expectations that govern their current investment decision-making in 2019.
Neil Downey
Tom Dicker
Kate MacDonald
John Murphy
Derek Warren
Moderator:
Neil Downey, Managing Director, Global Equity Research, RBC Capital Markets
Panel:
Tom Dicker, Vice President & Portfolio Manager, Dynamic Funds
Kate MacDonald, Portfolio Manager, Global Real Estate, Signature Global Asset Management
John Murphy, Vice President, Real Estate Securities Analyst, Cohen & Steers
Derek Warren, Vice President, Portfolio Manager, Real Estate Equities, Lincluden Investment Management Limited
For many REITs and REOCs, development is one of their key growth strategies in today’s market. The economics of building new assets have been compelling when compared with cap rates to buy existing ones. Are development strategies the result of cap rate compression that has priced REITs out of acquisition? But with rising land and construction costs, is the pro forma starting to change and associated risk increasing? This panel will examine these and other questions in greater detail. How are REITs equipped to execute development strategies when their original structure was not designed with this capability in mind? How is management overcoming these challenges? From where will development talent come from? What have been the experiences of REITs to-date with new developments? What have been the “actual” returns and real value creation? Are REITs making appropriate profit from development to compensate investors for level of risk? How should REITS and investors address the lack of cash flow during development? How should REITs balance expected strong NAV growth from development with possible low growth in cash flow upon completion? How can REITs balance the need for disclosure regarding new developments in order to enhance value with the need to keep many aspects private for negotiating or approval reasons? How are development returns being measured? What are best practices in reporting success?
Stephen Sender
Hugh Clark
Don Clow
Philip Fraser
Mario Saric
Jodi Shpigel
Moderator:
Stephen Sender, Trustee, H&R REIT
Panel:
Hugh Clark, Executive Vice President, Development, Allied Properties REIT
Don Clow, President & CEO, Crombie REIT
Philip Fraser, President & CEO, Killam Apartment REIT
Mario Saric, Managing Director, Real Estate & REITs, Scotiabank
Jodi Shpigel, Senior Vice President, Development, First Capital Realty Inc.
This session will examine the experiences of some of the smaller REITs, and what their growth strategies are to achieve greater mass and attract institutional and retail followings. What are the underlying fundamentals supporting these types of REITs in today’s investment environment? What are the challenges facing management and how are they addressing them? Are they adopting strategies that larger cap REITs do not follow? Is the pressure to acquire properties and grow pushing smaller REITs to other markets and asset classes? How are they viewed by the public markets?
Larry Toste
Scott Antoniak
James Beckerleg
Mark Rothschild
Michael Zakuta
Moderator:
Larry Toste, Partner, KPMG LLP
Panel:
Scott Antoniak, Chief Executive Officer, Slate Office REIT
James Beckerleg, President & CEO, PROREIT
Mark Rothschild, Managing Director, Real Estate Analyst, Canaccord Genuity Markets
Michael Zakuta, President & CEO, Plaza Retail REIT
Rapid technological advances are poised to profoundly disrupt the way we live, work and shop, yet many Canadian businesses aren’t ready for these sweeping changes – especially the real estate industry. But there could be hope – if the real estate organizations embrace change and invest wisely, digital disruption could be channeled to drive shareholder return and advance productivity. Technology is advancing to make all elements of real estate more efficient through AI and machine learning, blockchain and capital markets, building automation and energy efficiency, space utilization, workplace-as-a-service, data and analytics, modular buildings, drone technology, robotics, and augmented reality. This session will focus on some of the advances that are at the forefront in Canada and the U.S. and what you need to understand and apply to your role and your organization. How are break-through technologies changing the face of our marketplace today? What are the major opportunities that companies need to embrace in order to maintain a competitive edge?
Sheila Botting
Courtney Cooper
Bhavnesh Jaraim
Anvesh Rai
Casey Witkowicz
Moderator:
Sheila Botting, Senior Partner & Canadian Real Estate Leader, Deloitte
Panel:
Courtney Cooper, Principal, Alate Partners
Bhavnesh Jaraim, Chief Information Officer & VP, Technology, Boardwalk REIT
Anvesh Rai, Principal, Greensoil Building Innovation Fund
Casey Witkowicz, President & CEO, RYCOM Corporation
Multi-unit residential has moved to the top of the preferred property portfolio for a growing number of real estate organizations across Canada. What was once an asset class dominated by smaller privately-owned firms has now also become the domain of major institutional investors, REITs and private equity funds. Predictable yields, record returns and strong cash flows have made apartments one of the most reliable property classes. Investor demand far outweighs supply in many markets creating some cap rate compression. What direction is the multi-residential market likely to take in 2020 across Canada? How are occupancy rates in major markets across the country? How much purpose-built rental construction is expected next year? In which cities? Many REITs/REOCs are seeking to add multi-res to intensify existing properties. Do they have the skill to do this profitably? What challenges do they face to achieve these goals? How sustainable is the interest in this property class? To what extent can new rental units impact the housing affordability challenges in Vancouver and Toronto in particular? What impact are government policies having on the multi-residential market and therefore on REITs who are active in this property class?
David Bloomstone
Todd Cook
Brad Cutsey
Jonathan Fleischer
Lisa Russell
Dean Wilkinson
Moderator:
David Bloomstone, Director, Investment Banking Real Estate Group & Head of Multi-Residential Property Brokerage, TD Securities
Panel:
Todd Cook, President & CEO, Northview Apartment REIT
Brad Cutsey, President, InterRent REIT
Jonathan Fleischer, Executive Vice President, Operations, CAPREIT
Lisa Russell, Senior Vice President, Corporate Development, Boardwalk REIT
Dean Wilkinson, Executive Director, Institutional Equity Research, CIBC Capital Markets
What is the outlook for inflation, interest rates, employment growth and overall economic growth over the next twelve months? As the oil, gas and commodities sectors remain in a generally neutral zone, what are the ramifications for Western Canada? What economic engines are breathing life into Canadian GDP growth? Is the U.S. economy at the top of its cycle? What effect are issues in China and Europe likely to have on Canada? What are the implications of the uncertainty in trade policies, e.g. tariffs, USMCA? Are the outcomes of the provincial elections over the past year having any impact on our economy? What about the performance of the housing markets in Vancouver and Toronto? What lies ahead for the remainder of this year and eventually for 2020 for Canadian economic growth?
Michael Gregory, Deputy Chief Economist & Head of U.S. Economics, BMO Capital Markets
Why are an increasing number of REITs diversifying or choosing to retain such a mixed asset portfolio? To facilitate more rapid and stronger growth, this can range from refocusing from a “pure play” to owning multiple asset classes to investing outside of Canada. Diversification can be geographically focused or repositioning a REIT’s portfolio through divestiture of certain assets while maintaining only high quality core properties. Some have assumed a mandate to build a real estate investment vehicle, while others have created development and operating platforms. This panel will discuss and debate some of the challenges, risks and rewards of some of these various strategic options. Some asset classes face various challenges and offer different opportunities. While retail is undergoing disruption, industrial markets are performing very strongly in the current economy. While office is facing the impact of WeWork and other disrupters, a hot multi-residential market offers steady yields and addresses a need for housing supply. Should REITs be more diversified in order to deal with all this market transformation? What should ideally be the nature of their diversification? How challenging is it to move into markets outside of Canada? What is the business case in today’s market for a REIT to have greater diversification?
Pammi Bir
Peter Forde
Glenn Hynes
Kim Riley
Joshua Varghese
Moderator:
Pammi Bir, Global Equity Research, RBC Capital Markets
Panel:
Peter Forde, President & CEO, SmartCentres REIT
Glenn Hynes, Executive Vice President & COO, Crombie REIT
Kim Riley, Executive Vice President, Investments & Developments, Artis REIT
Joshua Varghese, Portfolio Manager, Signature Global Asset Management, CI Investments
Performance related data is playing two significant roles in the REIT market. On the one hand, senior executives are using a wider range of information that enhances their strategic planning and all aspects of decision-making. At the same time, REITs continue to experience growing demand from all stakeholders to effectively disclose and manage their environmental, social and governance (ESG) performance. This session will examine the wide range of options being used including voluntary disclosure, guidance, and aggregated frameworks. What are the complexities of these various metrics? How are organizations using this information within their investment, development and asset management decision-making? How is it shaping an organization’s processes, policies and overall culture? What is the evidence that strong ESG practices coupled with public disclosure results in superior investment returns, e.g. higher rental income and lower interest expenses? What is the view of rating agencies, analysts and portfolio managers of ESG and KPIs? What are REITs/REOCs doing to adjust their investment/operating practices to address extreme weather and/or political uncertainty? What impact are Proxy Advisors having on REIT/REOC governance?
Michael Brooks
Lesley Gibson
Anushka Grant
Michael Markidis
Neil Pegram
Moderator:
Michael Brooks, Chief Executive Officer, Real Property Association of Canada
Panel:
Lesley Gibson, Senior Vice President & CFO, CT REIT
Anushka Grant, Vice President, Innovation & Sustainability, RioCan REIT
Michael Markidis, Managing Director, Real Estate, Desjardins Securities
Neil Pegram, Director of Americas, GRESB BV
Access to well-priced capital is critical to the growth of publicly traded companies via acquisitions, development and other activities. This session will examine the current market conditions and environment for REITs and REOCs to access debt and equity markets to meet ongoing financial needs and to be doing so in the face of rising interest rates. What are the major sources for raising capital at this time? Discussion will also focus on units/shares, preferreds, converts, mortgages, mortgage bonds, unsecured debentures and revolvers. How are REITs evaluating and creating appropriate strategies to use these capital sources? Is unsecured financing continuing to be widely available? What should be a CFO’s interest rate strategy? Are short term rollovers practical? How should capital be allocated in this market? Should capital be recycled rather than raising equity? How can external capital be accessed without doing an issue? Do the capital and investor markets favour larger real estate entities or do they simply want the existing ones to get bigger? What are appropriate credit metrics? Are people following them?
David Holden
Pauline Alimchandani
Heather Kirk
Dale Noseworthy
Vlad Volodarski
Moderator:
David Holden, Managing Director, RBC Capital Markets Real Estate Group
Panel:
Pauline Alimchandani, Executive Vice President & CFO, Dream Unlimited
Heather Kirk, Executive Vice President & CFO, Cominar REIT
Dale Noseworthy, Chief Financial Officer, Killam Apartment REIT
Vlad Volodarski, Chief Financial Officer & CIO, Chartwell Retirement Residence
The pricing of office, industrial and multi-unit residential assets across Canada have generally reached some record high levels in many markets. At the same time, investment fever has stalled among many retail assets and to some degree in Alberta, Saskatchewan and Atlantic Canada. This panel will examine asset classes in geographic markets across Canada to identify what are the most significant challenges, risks and opportunities. The session will open with a brief overview of the Canadian real estate market offering some insights on its principal fundamentals and how property values have fared to this point in 2019. Where are we in the cycle by province/gateway city and by each property class? How does a REIT executive make the ultimate decision of whether to buy, to sell or to pursue development as a viable alternative? Where are cap rates heading? Do valuations and fundamentals still make sense? Given pricing and availability of product, is this a time to be a seller or a buyer? What are the biggest value determinants in various markets now? What is happening to property values and liquidity in secondary markets? Could they offer better opportunities on a risk adjusted basis? Do fluctuating housing markets really matter to REITs?
Colin Johnston
Paul Baron
Jason Castellan
Armin Martens
Brian Pauls
Moderator:
Colin Johnston, President, Research, Valuation and Advisory, Altus Group
Panel:
Paul Baron, Vice President, Asset Management, Minto Apartment REIT
Jason Castellan, Co-Founder & CEO, Skyline Group of Companies (Skyline Apartment, Skyline Commercial, Skyline Retail)
Armin Martens, President & CEO, Artis REIT
Brian Pauls, Chief Executive Officer, Dream Industrial REIT
While office, retail, industrial and multi-residential represent the four major property classes in Canada, there are investment opportunities in other niche real estate plays. This session will examine four examples of REITs that are targeted at unique markets: automotive, healthcare, hospitality, and Europe. The discussion will include what were the factors that led to the creation of these REITs and the strategies that they employ in successfully creating shareholder value and returns on investment. What is their experience with analysts and money managers in providing them with appropriate information to secure their support and investment in non-core markets and particularly being quite active outside of Canada?
Matt Kornack
Phillip Burns
Paul Dalla Lana
Azim Lalani
Milton Lamb
Moderator:
Matt Kornack, Director, Real Estate Analyst, National Bank Financial
Panel:
Phillip Burns, Chief Executive Officer, European Residential REIT
Paul Dalla Lana, Chairman & CEO, NorthWest Healthcare Properties REIT
Azim Lalani, Chief Financial Officer, American Hotel Income Properties REIT LP
Milton Lamb, President & CEO, Automotive Properties REIT
No other real estate property class is attracting as much attention today as retail. Everyone has watched Canadian, U.S. and European retailers opening stores, closing them or looking for fresh approaches to their formats. Will the turmoil in the U.S. retail market move into Canada? Is de-malling necessary and viable? How are super regional malls performing vs. smaller enclosed malls vs. power centres vs. grocery anchored centres? There are some dire forecasts for the future of older malls as changing demographics and buying habits negatively affect poorer quality properties. How are rent growth, occupancy levels, and intensification opportunities comparatively for each different type of retail format? How is online shopping impacting the Canadian market where landlords have been leaders in restructuring many of their properties? What has been the outcome of the Target and Sears vacancies? How are brick and mortar stores co-existing with online shopping? Are the e-commerce strategies of major retail owners correct by acquiring more industrial assets or introducing a mixed-use development on a portion of their retail site? What are national retailers doing to remain buoyant in this competitive market? How are landlords redefining the onsite retail experience for shoppers? This session will examine these and other trends and some facts and fallacies pertaining to the Canadian retail real estate market.
Nurit Altman
Marie-Andrée Boutin
Craig Patterson
Kevin Salsberg
Ken Siegel
Moderator:
Nurit Altman, Director, RBC Capital Markets Real Estate Group
Panel:
Marie-Andrée Boutin, Executive Vice President, Retail Strategy and Operations, Cominar REIT
Craig Patterson, Editor-In-Chief & Founder, Retail Insider
Kevin Salsberg, Senior Vice President, CT REIT
Ken Siegel, Senior Director, Retail Leasing, Choice Properties REIT
An insightful examination of the challenges, trends, and issues facing Canadian REITs and REOCs, and what CEOs are doing to deliver strong performance and growth. The following are some of the questions that will be examined:
Rael Diamond
Neil Downey
Jonathan Gitlin
Kevan Gorrie
Michael Waters
Moderator:
Rael Diamond, President & CEO, Choice Properties REIT
Panel:
Neil Downey, Managing Director, Global Equity Research, RBC Capital Markets
Jonathan Gitlin, President & COO, RioCan REIT
Kevan Gorrie, President & CEO, Granite REIT
Michael Waters, Chief Executive Officer, Minto Apartment REIT