Amid a backdrop of lower interest rates and improving economic growth, asset allocators have recently gravitated toward Real Estate Investment Trust (REIT) investments.¹ However, the potential for ongoing political turmoil in the U.S. tied to presidential turnover is keeping the market on edge, fuelled by angst about a smooth transfer of power.² This is causing heightened volatility in underlying U.S. equity indices where REIT issuers trade, which is a matter of great significance to Canadian investment portfolios. 

The first thing to consider is an elevated correlation between performance in the S&P 500 and S&P/TSX Composite, which historically reaches 80%.³ The following chart suggests that Canadian equities will not be able to sidestep corresponding declines should markets roil down south. 

Further, there are considerable questions surrounding the Trump presidency’s impact on the Canadian economy related to foreign tariff policy, which could impact the bottom line of Canadian businesses. According to Randall Bartlett, senior director of Canadian economics at Desjardins, “direct impacts of the 10 per cent or up to 20 per cent tariff” could be applied to imports from Canada.⁴ Such a scenario would materially impact the bottom lines of domestic industrial heavyweights and impact their capital investment strategies. 

While such correlations and uncertainties may unduly impact public REITs in Canada – many of which are dual-listed on U.S. exchanges – private REITs are not subject to the same volatility. 

The key reason lies in the more stable valuations of private REITs, which are not influenced by the daily fluctuations of sentiment or performance correlations between equity indexes and their underlying components. Instead, private REIT valuations are based on quantifiable metrics, such as the underlying value of real estate assets and the rental income they produce. Additionally, the application of quarterly (or longer) appraisal-based valuation methods mean unit value changes are more adaptive over time and less subject to daily/weekly market variance.  

Put another way, public market REITs are more influenced by investor emotion, analyst reports, and peer valuation correlations, while private market investments are based on data-driven calculations to reflect underlying unit value. The investment risks of each are not linear. 

According to Wayne Byrd, Chief Financial Officer of Skyline Group of Companies, the difference between public and private REITs can be characterized as ‘emotional’ versus ‘computational’: “The value of the investments in the public markets is determined by the market, by sentiment, by market analysts, by the ‘buy, hold, sell’ rating and what the market decides the underlying assets are worth… [whereas] the value of the investment in the private market is determined by data under a Net Asset Value (NAV) per share calculation driven from the market value of the underlying assets, removal of emotion, and the ebbs and flows that we see in the public space.”⁵

Canadian Political Uncertainty Looms in 2025 

Irrespective of the shifting power dynamics down south, Canada’s political landscape is bound for change in 2025. This may cause volatility to increase in Canadian markets similar to what has generally been seen in the U.S. during federal election years. Given the tenuous hold on power Justin Trudeau and the Liberal Party maintain in parliament,⁶ odds are elevated that a snap election could even take place before the mandatory October 20, 2025, electoral deadline.⁷

The makeup of the current Liberal government is a cause for present ongoing instability. In 2021, the Liberal Party won 160 seats (up from 155 seats in 2019) but fell short of the 170 seats needed for a majority in the House of Commons. The lack of electoral mandate led to the Liberals to enter into a Supply and Confidence Agreement with the New Democrat Party (NDP) in 2022, which was subsequently ended in 2024.⁸ This makes the Liberals subject to a no-confidence motion in parliament, fostering ongoing uncertainty in the marketplace. 

Whether or not a snap election takes place, Trudeau’s hold on power appears shaky. In late October, at least twenty disgruntled backbenchers presented an ultimatum to Trudeau to decide whether he wants to stay on as party leader or face the prospect of a revolt.⁹ Although he survived this ultimatum with his power intact, the maneuver casts doubt about the Liberals’ ability to emerge victorious in the next general election. 

Although we cannot predict which political party will take power next year on either side of the border, heightened uncertainty is expected. This uncertainty typically impacts public market pricing, particularly in election years, and public REITs are not immune to these fluctuations. 

Skyline Private REITs: A Pure-Play Real Estate Investment Hedge 

Skyline offers pure-play investments focusing on specific sectors known for their resilience, historical stability, and growth potential. We connect portfolio managers and institutional investors to several private alternative investment opportunities available through Fundserv. These include three REITs: Skyline Apartment REIT (SKY2006), Skyline Industrial REIT (SKY2012), and Skyline Retail REIT (SKY2013), as well as Skyline Clean Energy Fund (SKY2018). Our deep understanding of market dynamics, and our expertise in each of these sectors, has enabled us to identify resilient asset classes and investment opportunities that largely insulate our funds from market volatility.

Each segment aims to buffer against cyclical downturns by focusing on asset classes with high occupancy rates and insulated pricing power. These sectors, such as multi-residential real estate, logistics, essential retail, and renewable infrastructure, are often characterized by stable demand and the ability to withstand market fluctuations. By concentrating exclusively on these areas, we have developed a deep level of expertise, allowing us to manage risk more effectively.  

Build a diversified portfolio with an investment strategy grounded in the needs of Canadians. Contact a Skyline representative today to learn more about Skyline’s private alternative investments and explore how dividend investing in these stable sectors can help quiet the noise of market volatility. 

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1 Reits Rise 6.4% in August, Institutional Real Estate Inc. https://irei.com/news/reits-rise-6-4-in-august/

2 Top Dem Jamie Raskin Warned That Congress Will Ban Trump If He Wins Presidential Election, Glenn Grunwald. https://www.youtube.com/watch?v=SWW4R3k4wzY

3 Do U.S Elections Affect Canadian Markets? Raymond James. https://www.solustrust.ca/-/media/rj/dotcom-canada/files/commentary-and-insights/insights-and-strategies/market-commentary—do-us-elections-affect-canadian-markets_en.pdf

4 Second Trump presidency would put ‘meaningful drag’ on Canada’s economy: Desjardins, BNN Bloomberg. https://www.bnnbloomberg.ca/business/economics/2024/10/09/second-trump-presidency-would-put-meaningful-drag-on-canadas-economy-desjardins/

5 Investment opportunities in essential private alternatives, Investment Executive. https://www.investmentexecutive.com/tools_/webinars/investment-opportunities-in-essential-private-alternatives/

6 Group of Liberal MPs plan to verbally ask Trudeau to step down next week, CTV News. https://www.ctvnews.ca/politics/group-of-liberal-mps-plan-to-verbally-ask-trudeau-to-step-down-next-week-1.7075764

7 Canada’s government under threat as Trudeau’s parliamentary partner exits, Financial Times. https://www.ft.com/content/33114c07-2b7f-4946-bf59-d64f5f943a01

8 Singh ends Supply and Confidence Agreement with Liberals, NDP. https://www.ndp.ca/news/singh-ends-supply-and-confidence-agreement-governing-liberals

9 Justin Trudeau pressured to resign by backbench MPs within own party, The Guardian. https://www.theguardian.com/world/2024/oct/23/justin-trudeau-canada-pressured-to-resign

Canada has become one of the fastest-growing countries in the G7,¹ with its population growth currently outpacing even China and India.² In 2023, Canada’s population reached a record high of 40.77 million with an influx of 1.27 million people, up 3.2% from 2022, marking the highest growth since 1957.³

According to StatsCan, 97.6 % of Canada’s population growth in 2023 came from international migration.⁴ In fact, from January to October 2023, Canada accepted more than 1 million new residents, with another 1.5 million expected over the next three years.⁵ Canada is already facing a lack of housing supply that has hit crisis levels, and the Canadian Mortgage and Housing Corp. (CMHC) estimates that in order to restore housing affordability and meet growing demand, the country needs to build 3.5 million more homes by 2030.⁶

Rapid population growth is not without its challenges, but it also spurs on opportunities for sectors rooted in the population’s essential needs, such as real estate and clean energy infrastructure. Immigration in particular plays an integral role in Canada’s economic growth, driving up the demand for housing, places to shop, product warehousing, distribution, and logistics facilities, and energy production.

The Current Economic Landscape in Canada

An increasing population spurred by immigration can promote economic growth. Newcomers not only increase overall consumption of goods and services, but they also add supply to a tight labour market.⁷

“As Canada experiences population growth due to both immigration and natural increase, we are seeing a trend of ‘de-urbanization’ where residents are moving away from major markets like Toronto and Vancouver,”

said Wayne Byrd, Chief Financial Officer, Skyline Group of Companies.

“They are instead choosing smaller, secondary communities that offer comparably affordable housing and an overall lower cost of living, which may equate to an improved quality of life. As the population grows, these secondary communities present valuable opportunities for investors and developers alike.”

Demand for essential assets continues to rise in these markets, attracting new commercial investment to meet the needs of a growing population.

Essential Assets as a Perpetually Strong Investment

While some sectors, such as office real estate, remain under pressure years after the initial economic effects of COVID-19, other asset classes are thriving and continuing to find growth opportunities. Essential asset classes—those considered indispensable to the economy—are particularly resilient to any market environment or economic cycle, and receive the largest benefit from immigration and population growth:

Multi-residential Real Estate

Demand for high-quality rental housing remains high, and supply has not been able to keep up with demand—now not only in urban areas, but also in secondary markets. According to CMHC’s 2024 Housing Outlook, many households continue to struggle to afford homes, leading to increased demand for rentals—which is further fueled by immigration due to newcomers tending to rent upon arrival in Canada.⁸ 

“As we open our doors to 500,000 new Canadians each year, the current economic environment boils down to demand significantly outpacing supply,” said Wayne Byrd, Chief Financial Officer, Skyline Group of Companies.

“Rental apartments not only remain one of the most affordable types of housing, but they are also the housing choice of many newcomers to Canada. While demand has hit a crisis point in many of our major population centres, it has also steeply climbed in many outlying secondary and tertiary markets. It has become more crucial than ever for new, high-quality, purpose-built rental housing to be delivered in those areas. Investment in these markets can help accelerate Canada’s progress toward meeting its housing supply targets, in addition to presenting a strong opportunity.”

Retail Real Estate

When it comes to retail, there is a distinction between the “must haves” (essential retail, such as grocery and pharmacy) and the “nice-to-haves.” In-person essential retail-anchored real estate has shown lasting resilience amid recent economic uncertainty. CBRE’s 2024 Canada Real Estate Market Outlook noted “limited vacancy amongst the most in-demand formats, namely grocery-anchored centres.”⁹

“As the population grows incrementally, so too does the demand for essential goods retailers: grocery stores, pharmacies, quick service restaurants, et cetera,” said Byrd.

“Further, in secondary and tertiary markets, these essentials-based retail properties are often the singular, or near-singular, community shopping hub in the area, essentially creating an additional level of built-in resilience for this type of asset.”

Industrial Real Estate

As demand heightens for essential consumer products, it also drives the need for purpose-built storage, warehousing, distribution, and logistics centres for these goods.

“Population growth not only spurs demand for convenient shopping locations for essential products, but all the infrastructure surrounding those goods, including their storage and delivery,” said Byrd.

“Additionally, the current trend of de-urbanization further increases the need for warehouse and distribution space, to allow for the more efficient movement of goods to Canada’s secondary markets.”

Energy Infrastructure

High levels of immigration are a key driver of increasing energy demand. The Canada Energy Regulator predicts that energy demand in Canada will grow as much as 135% by 2050.¹⁰

“Demand for energy is increasing right alongside population growth, and just like housing, essential retail, and distribution, Canada needs to increase its energy capacity in order to meet these needs,” said Byrd. “Support for renewable energy continues to grow, with governments worldwide implementing incentives and new funding mechanisms to ensure renewable energy plays a significant role in the global energy mix.”

Strategic Advantage of Skyline’s Private Alternative Investments

With Canada’s consistently rising population, investment in essential asset classes may be a smart move toward portfolio security and stability. Further, choosing private alternative investments rooted in these asset classes may ensure additional stability due to their lack of correlation to the public markets. Skyline’s private alternative investment funds are rooted in institutional-quality real estate and clean energy infrastructure that has demonstrated historically strong performance and consistent returns throughout challenging economic periods.

“Each asset class within Skyline’s funds has been chosen on the basis of stability and resilience,” said Byrd.

“Skyline offers investment opportunities in the asset types that have proven to withstand economic slowdowns, volatility, and overall uncertainty: multi-residential housing, essential retail, industrial facilities, and clean energy infrastructure. Each investment is well-positioned to benefit from Canada’s ongoing immigration targets as well as organic population growth.”

Whether through organic growth or immigration, population growth is a natural catalyst for each of Skyline’s chosen sectors. As Canada’s population continues to grow, demand for housing will continue to increase, as will the need for essential retail and distribution of these goods, and so too will the demand for energy.

Conclusion

The narrative of the Canadian economy over the last few years has been one of uncertainty and challenges. However, with anticipated surges in demand for essentials fueled by sustained immigration, Skyline’s private alternative investments are poised to continue their growth trajectory.

Build your clients’ portfolios with an investment strategy grounded in the needs of Canadians. Contact a Skyline representative today to learn more about Skyline’s private alternative investments.

¹Government of Canada, Statistics Canada. (2023, September 27). The Daily — Canada’s demographic estimates for July 1, 2023: record-high population growth since 1957. https://www150.statcan.gc.ca/n1/daily-quotidien/230927/dq230927a-eng.htm?HPA=1 

²Population growth in Canada hits 3.2%, among world’s fastest. (2023, December 19). Financialpost. https://financialpost.com/pmn/business-pmn/population-growth-in-canada-hits-3-2-among-worlds-fastest 

³Serebrin, J. (2024, March 27). Statistics Canada says population growth rate in 2023 was highest since 1957 | CBC News. CBCnews. https://www.cbc.ca/news/politics/population-growth-canada-2023-1.7157233  

⁴Government of Canada, Statistics Canada. (2024, March 27). The Daily — Canada’s population estimates: Strong population growth in 2023. https://www150.statcan.gc.ca/n1/daily-quotidien/240327/dq240327c-eng.htm 

⁵Immigration, R. a. C. C. (2023, November 1). Notice – Supplementary information for the 2024-2026 Immigration levels Plan. Canada.ca. https://www.canada.ca/en/immigration-refugees-citizenship/news/notices/supplementary-immigration-levels-2024-2026.html 

⁶Younglai, R. (2023, September 14). Canada needs 3.45 million more homes by 2030 to cut housing costs as population grows, CMHC predicts. The Globe and Mail. https://www.theglobeandmail.com/business/article-canada-needs-345-million-more-homes-by-2030-to-cut-housing-costs-as/ 

⁷Moquillaza-Bello, P. (2024, June 25). How population growth impacts the Canadian economy — and you. https://www.cibc.com/en/asset-management/insights/navigating-the-markets/population-growth-impacts-canadian-economy.html#:~:text=Generally%20speaking%2C%20a%20growing%20population,by%20extension%2C%20your%20equity%20portfolio. 

⁸2024 Housing Market Outlook. (2024, April 4). CMHC. https://www.cmhc-schl.gc.ca/professionals/housing-markets-data-and-research/market-reports/housing-market/housing-market-outlook 

⁹ Canada Real Estate Market Outlook 2024. (n.d.). CBRE Canada. https://www.cbre.ca/insights/reports/canada-market-outlook-2024 

¹⁰Government of Canada, Canada Energy Regulator. (n.d.). CER – Fact Sheet: Results from the Canada Net-Zero scenario. https://www.cer-rec.gc.ca/en/about/news-room/fact-sheets/canada-net-zero.html 

With Canada’s population continuing to rise and expected to grow by 44% by 2050[1], the country’s energy demand is projected to surge in response – by up to 47%[2].

Canada has one of the highest per-capita energy consumption rates in the world due to its climate and widely dispersed population. According to a 2023 report from the Public Policy Forum, Canada will need to increase supply by two to three times its current volume in order to meet demand and also reduce reliance on fossil fuels[3].

As Canada looks to increase its supply, it must also face the additional challenge of phasing out fossil fuels, which still comprise a significant portion of Canada’s energy mix. Government and private corporations have begun to look at alternative energy sources such as solar and biogas. These clean energy sources have the potential to directly address some of the major challenges faced by the current energy grid. For example, they can keep supply in balance with demand by storing energy via batteries during off-peak hours and redistributing it to the grid when demand is at its peak.

 As part of Canada’s goal to reach Net Zero by 2050, the Federal government is aiming to create low- or zero-emission electricity grids across Canada by 2035. Reaching these ambitious targets will require a collective effort from all the provinces as well as the private sector. Private alternative investment funds based in clean energy, like Skyline Clean Energy Fund (SCEF), have a critical role to play in helping Canada meet its net-zero goal and address the growing energy demand.

Skyline’s Strategic Response

Skyline Clean Energy Fund (SCEF) strategically focuses on acquiring and optimizing infrastructure assets, such as solar and biogas, backed by long-term government contracts. SCEF’s solar assets contribute to renewable energy generation by harnessing the power of the sun to create electricity, and its biogas plants convert organic waste into electricity or Renewable Natural Gas (RNG). In addition, SCEF’s portfolio includes the opportunity to continue to produce energy well past the expiration of its current offtake contracts and to increase the production of the assets due to advancements in technology and a developing private market.

For more information on how solar assets generate electricity, read this article.

For information on how biogas assets generate electricity, read this article.

Portfolio Overview

Skyline Clean Energy Fund’s portfolio of 83 clean energy assets, offers a diversified approach to renewable energy. In total, the portfolio represents $412.74 million in asset value, 68.74% allocated to solar and 29.86% to biogas[5]. The projected revenue streams from SCEF’s top ten assets is distributed between 38.63% stemming from biogas and 61.37% from solar[6].

From an investment perspective, SCEF reinvests its cash flows to optimize clean energy production and drive further investment growth for its unitholders. Redeploying all capital into new accretive opportunities creates a compounding effect, helping grow the Fund’s unit value. This approach not only maximizes returns for investors but also ensures SCEF’s continued expansion and contribution to the renewable energy sector without diluting current unitholders.

SCEF also benefits from diversified revenue streams. Within clean energy infrastructure, SCEF could potentially generate revenue through:

1. The monetization of environmental attributes. For example, at SCEF’s Lethbridge biogas facility, the Fund receives carbon credits for processing organic waste that may have otherwise ended up in a landfill, expecting around $1.4M in revenue in 2024 from Carbon Offsets via Alberta TIER and approximately $1M annually from the Federal Clean Fuels Regulation.
2. Tipping fees to dispose of waste in landfills that are backed by contracts to divert organic/green bin waste to biogas facilities to be turned into electricity or Renewable Natural Gas.
3. Digestate sales. This by-product of biogas facilities can be sold to farmers as an organic fertilizer and is preferable to traditional fertilizers.

Economic and Environmental Impact

SCEF is a privately managed investment fund, focused on investing in renewable and clean energy production. SCEF sells its energy through long-term government or private contracts, providing the Fund with stable and predictable revenue streams and enabling it to withstand various economic environments.

SCEF’s contribution to the clean energy sector is substantial and impactful: its assets have demonstrated year-over-year growth in expected annual energy generation and currently supply 117,415 MWh [MM2] annually[7]. By capitalizing on opportunities in the renewable sector and aligning its portfolio with the anticipated continuation of high energy demand, SCEF plays a pivotal role in advancing Canada’s transition to a cleaner future.

Skyline Clean Energy Fund: A Resilient Investment with a Bright Future

SCEF’s operations complement the national, and indeed international, objective to expand renewable electricity capacity, which is forecasted to rise by over 60% globally by 2026[8] compared to 2020 levels. As demand increases and the clean energy sector continues to grow, so too will Skyline Clean Energy Fund.

By investing in clean energy solutions like Skyline Clean Energy Fund, investors can enjoy the benefits of the Fund’s growth while having a direct positive impact on Canada’s transition to clean energy.

Visit www.SkylineWealthManagement.com/Advisory to learn more about Skyline’s private alternative investment funds.

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[1] Government of Canada, Statistics Canada. (2022, August 22). This report presents the results of ten population projection scenarios by age group and sex up to 2042 for the provinces and territories and up to 2068 for Canada. using the July 1, 2021 population estimate as the starting point, these projections are based on assumptions that take into account the most recent trends relating to the components of population growth, specifically fertility, mortality, immigration, emigration and Interprovincial Migration. https://www150.statcan.gc.ca/n1/pub/91-520-x/91-520-x2022001-eng.htm

[2] Government of Canada, C. E. R. (2023b, November 24). Canada energy regulator / Régie de l’énergie du Canada. CER. https://www.cer-rec.gc.ca/en/data-analysis/canada-energy-future/2021/key-findings.html#:~:text=Canadians%20use%20more%20electricity%2C%20from,electric%20vehicles%20and%20hydrogen%20production

[3] Public Policy Forum Forum Des Politiques Publiques . (2023, July). Pg. 2, Project of the Century: A Blueprint for Growing Canada’s Clean Electricity Supply – and Fast. ppforum.ca. https://ppforum.ca/wp-content/uploads/2023/07/Canada%E2%80%99sCleanElectricitySupply-PPF-July2023-EN-1.pdf

[4] As at December 31, 2023.

[5] As at March 31, 2024.

[6] As at March 31, 2024. Based on expected revenue numbers that are forward looking.

[7] As at December 31, 2023

[8] United Nations Climate Change. (n.d.). Renewables Growth Must Double to Achieve Paris Goals – IEA. Unfccc.int. https://unfccc.int/news/renewables-growth-must-double-to-achieve-paris-goals-iea#:~:text=The%20report%20forecasts%20that%20by,fossil%20fuels%20and%20nuclear%20combined

Private alternative investments are distinguished amongst Canadian investments in recent years with their resiliency and stability, as they are generally uncorrelated from the stock markets and potential to enhance portfolio diversification— relevant amid the current landscape of market volatility. The private alternative investment space has a unique blend of growth potential and asset diversification. Within it, Real Estate Investment Trusts (REITs), particularly multi-residential REITs, stand out for their potential of steady income and growth prospect. Since 2006, Skyline Apartment REIT, a leading private Canadian REIT made up of multi-residential assets in secondary markets, has demonstrated the strength and consistency that investors seek in apartment real estate investing.

Skyline Apartment REIT has become one of Canada’s largest multi-residential portfolios. It offers a compelling option for those looking to strengthen their investments against the unpredictability of the public market, while adding historical stability and a track record of consistent returns. Access to this investment can be further explored at www.skylinwealth.ca or Fundserv code SKY2006.

Below, we explore three key aspects that make Skyline Apartment REIT an investment of choice for investors seeking exposure to the Canadian real estate housing market.

Historical Performance and Stability

Skyline Apartment REIT has a historically consistent track record, with just under $5 billion in investment property fair market value, and a stable occupancy rate of 95.88%. This is across over 22,000 units and 243 properties. Additionally, from September 2022 to September 2023, in what was a challenging market, the REIT saw an increase of 8% in the investment property fair market value.

Since inception in 2006, the REIT has attracted investors and Advisor portfolios who value reliability, access to real estate, and stable performance in their holdings. Skyline Apartment REIT’s strategic focus within the Canadian multi-residential sector puts it in the medium-risk profile , balancing potential returns with thoughtful risk management.

Skyline Apartment REIT’s strategic approach extends beyond market positioning in the REIT’s financial management, demonstrated by its strategic staggering of mortgage maturities. With most of the REIT’s mortgage debt maturing in 2025 and beyond, accounting for over 80% of its portfolio, the REIT has skillfully minimized exposure to the current fluctuating interest rate market. The weighted average mortgage interest rate of the REIT is 3.17%, with total debt to investment property fair market value (or LTV) standing at 57.40%. With a long-term view on rates, the weighted average mortgage term to maturity is 4.58 years.

Strategic Advantages of Skyline Apartment REIT

Skyline Apartment REIT is focused within the secondary markets of the Canadian multi-residential sector. It has a strategically diversified portfolio across seven provinces and 60 communities in Canada. The geographical spread demonstrates the REIT’s substantial footprint in the national market and provides a hedge against regional economic fluctuations while providing a home to over 35,000 Canadians.

The strategic investment in secondary markets is a deliberate move that capitalizes on the typically lower acquisition costs in these markets, allowing for greater value maximization. These markets present a unique opportunity during Canada’s intensifying housing crisis. The demand for affordable housing solutions continues to grow, and Skyline Apartment REIT addresses this need effectively. Skyline Apartment REIT has historically maintained its stability and growth and is well-equipped to capitalize on the ongoing demand, asserting its role as a contributor to the multi-residential investment sector.

Financial Benefits and Tax Efficiency

Skyline Apartment REIT offers potential for a tax-efficient structure that is designed to enhance overall after-tax returns for investors. By focusing on value growth, capital gains efficiency, and Return of Capital (RoC), the REIT can optimize tax implications for many of its unitholders so their investments are productive and efficient from a tax perspective. The REIT facilitates redemptions on a monthly basis with no fees, allowing for greater liquidity and financial flexibility.

Benefits of Portfolio Efficiency

Skyline Apartment REIT has long seen the benefits of implementing environmental efficiencies at its properties and integrating sustainability into all levels of its business operations. The REIT aims to increase electricity conservation through retrofitting its buildings with high-efficiency equipment and submetering. It also mitigates the over-use of water through practices such as consumption tracking and monitoring, early water leak detection sensors, and other innovative technologies.

Notable environmental initiatives by the REIT and its parent entity, Skyline Group of Companies, include producing 38,299 MWh1 of electricity through solar assets (many of which are located at Skyline Apartment REIT properties); saving approximately 13,223 MWh through electrical submetering; avoiding an average of 67% in water loss/wastage monthly through continuous use of leak detection systems; diverting an anticipated 241,624 kg of compost from landfill through organic compost services; and diverting 10,434 lbs. of e-waste from landfill.²

Additionally, earlier in 2023, the REIT announced an EV installation program in partnership with Natural Resources Canada (NRCan) that will see over 900 EV (electric vehicle) charging stations installed at its properties by March 2024.

By facilitating these types of initiatives, programs, and policies, the REIT ultimately adds efficiency to its operations and value to its property portfolio, positioning the portfolio to achieve increases in value for its investors.

Conclusion

Skyline Apartment REIT offers advisors/dealers and their clients a focused and tax-efficient investment in the Canadian multi-residential sector. With its low MER and potential for greater liquidity, the REIT has proven a historically sound investment option that doesn’t sacrifice growth potential.

Promising yet challenging prospects may be ahead for the Canadian real estate market, with anticipated further surges in housing demand spurred by demographic shifts and sustained immigration. Skyline Apartment REIT stands ready to navigate these conditions.

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.

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Disclaimer for SkylineWealth.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.