Canadian REITs

Investment specialists are finding that Canadian REITS are much stronger than their US peers.  While credit markets are slow to recover in this fiscal environment, Canadian REITs were in a stronger position during the slump. The Canadian banking system and a stronger market in Canada has meant that these REITs have not suffered the pressure their American counterparts have had to endure.

The Globe Investor Article: Canadian REITs stronger than U.S. peers cronicles the differences.  The Globe’s article RioCan bucks the recession by Steve Ladurantaye provides a specific example of this trend.

REITs are investing and, as consequence, offer a good long term return for their investors. REITs, with their ability to respond to the market, are jumping in to purchase heavily discounted properties. Many have repositioned their captial structure over the past months, repaying debt and freeing cash, and are ready to invest.

Recent articles are bringing this to the attention of investors.  David McIntyre in American Cronicle has an article, Listed Real Estate Trusts Offer good Long Term Returns Says CBRD.  The same article has been picked up in the Brisbane Times.

REITs are up over 50 percent since March. Why? Because they have factored in the future, refinanced, and become an intelligent place to invest.

Diana Olick from CNBC’s article REITS on a Run explains that commercial real estate, unlike housing, has not actually been overbuilt but was experiencing difficulties due to the economy and the credit markets. By responding to the realities of the market they have positioned themselves for growth in the future.

Many Canadian REITs are adjusting to the difficult times, re-evaluating their growth options, taking charge of their expenses, and offering a positive, and sometimes higher than last year, return on investment.

Roger Conrad in Canadian Edge announces that RioCan REIT is a “buy.”

Dundee Property REIT reports an increase in profits in The Canadian Press.

Avi Morris reports Entertainment Property REIT, while struggling with some of its niche markets, is offering a 11% yield (from the reduced dividend).

Westmont Hospitality Group has announced a partnership with Commonwealth Games Canada to help Canadian athletes, coaches, sports organizations and sports partners to “save on sports travel accommodation while raising money at the same time.”

In preparation for Dehli 2010, the next Commonweath Games, all teams connected to the Commonweath Games will be able to participate in the accommodation savings.

Westmont Hospitality Group is Canada’s largest hotel manager, operating over 150 hotels across Canada. In partnership with InnVest REIT, Westmont Hospitality Group operates a selection of full service and limited service hotels including Best Western, Comfort Inn, Delta, Hilton, Holiday Inn, Holiday Inn Express, Quality, Radisson and Travelodge.

Read more on this opportunity created on the official Commonweath Games site or at the North Bay News.

Some investors and their advisors are looking at where to invest in this volitile market. Investment specialists are recommending diversity but, within that diversity they recommend REITs as a stable and dividend providing part of that portfolio.

See the following articles:

The asset allocation evolution: Balancing a portfolio to reflect a global marketplace by Keven Dehod on Troy media.

Interview Reveals the Pros and Cons of Investing in REITs by Earl E. Bird.

Some REITs are showing signs of improvement, posting increases in their last quarter over the same quarter a year ago. Analysts are indicating that these investment oportunities may be the way to go. Follow the following links and see what others are doing and saying.

David Enke’s article for Seeking Alpha titled “Time to Invest in REITs?”

RTTNews: “Dundee REIT Q4 FFO rises“

REITs are being looked at, world wide, as a possible solution to the market volitility.

Senator Edgardo J. Angara expresses his views on this possiblity in an article written for the Business Mirror titled “REIT: liquifying real estate assets.”

How do REITs rate in the new Harper budget? They may do quite well. Access to Canadian Mortgage and Housing Corporation (CMHC) funding gives Canadian REITs a chance to weather the current economic difficulties better than many other investments.

Access to financing that is fair and transparent to all shareholders may assist REITs to grow in this fragile market. Read examples in kciinvesting’s article “How Harper Rates” by Roger Conrad.

Could Federal Infrastructure Assistance, announced by Mr. Flaherty in the latest Canadian Budget, assist REITs in Canada? This assistance, which may be available to communities to establish architectural and building guidelines and downtown beautification and also to upgrade water and sewer infrastructure, could benefit the quality and growth of REITs in Canada.

Malls and Health centres, often operated by REITs can improve their quality and expand their capacity through the growth and upgrades communities may access. Many smaller Canadian centres have not had the ability to upgrade their infrastructure and,thus, could not accommodate growth or upgrades to privately owned facilities. While these communities have need for increased and upgraded capacity it has been difficult for the REITs to justify the upgrades and to realize growth without community support.

Read more on this opportunity “Snapshots from the Edge of Canada” by Eleanor Beaton and Peter Mitham in the Globe and Mail’s Report on Business.

A Reuters news story reports an expected increase in foreign investors in real estate in 2009 over 2008 investments. An annual report by the Association of Foreign Investors in Real Estate (AFIRE) tracking institutional investor interest states that both foreign lenders and equity investors plan to increase investment globally with the United States being thier favored internation investment target.  Germany and Switzerland follow the US with Australia and Canada close behind as prefered targets.

Read the full Reuters article: “global property investors see surge in spending”

TKG-StorageMart’s once hostile takeover of Canada’s In-Storage REIT is one step closer to becoming a sale agreement. TKG-StorageMart has increased their bid to $4.00 per share and plan to close a full cash sale of about $416 million in February. The full story is available at ISS: Inside Self-Storage.

Canadians, 18 years and older, can, as of January 1, 2009, contribute $5000 a year to the new Tax Free Accounts (TFSA). In these accounts the income from the interest is tax free and can be used for any future purchases. As most investments that are eligible for an RRSP is also eligible for a TFSA, investments in REITs can be moved into these accounts.

Dianne Maley wrote a article special to the Globe and Mail that explains the new TFSAs.

Elliot H. Gue, writing for kciinvesting.com, finds that sustainability has more inpact that yields when savvy investors are making investment decisions in the current market conditions. Real Estate Investment Trusts, especially Canadian managed Trusts, are the contenders of choice for these investors. Read his full article at kciinvesting.com.

In an interview with the Calgary Herald Edward Sonshine, the Chief Executive of RioCan Real Estate Investment Trust, provides his perspective on the current financial challenges and on future directions.

Read the full article from the Calgary Herald.

H&R REIT has created a more secure for the future of their $1.4 billion Bow Tower in Calgary. Selling $200 million in debt to Fairfax Financial Holdings and lowering their distributions to 6 cents a unit is part of their financing plan. There is still more work to do but the future is looking more secure.

Read the complete article on ReportOnBusiness.com.

While the benchmark stock index for Canadian REITs has fallen dramatically in 2008 many investment advisors are suggesting that they may provide a good purchase value. Rob Carrick of the Globe and Mail in his article of December 6th, 2008 REITs Battered Down to Eyecatching Levels suggests that the drop in stock value does not accurately represent a loss in value of the larger Canadian RIETs. This claim is supported by Royal Host REIT’s announcement of a special distribution on December 31, 2008. The distribuition is demonstrative of the REIT’s successful performance in 2008.

The hostile takeover attempt of InStorage REIT by StorageMart, a subsidiary of TKG StorageMart partners, takes one more step with the offer being varied and extended. Read the full article on this continuing saga at RTTNews

InStorage REIT continues to advise its unitholders against accepting offers that will allow Canadian Storage Partners to successfully take over the company. Find the full article on MarketWatch.

InStorage REIT has been under hostile takeover attemps since October 16, 2008.  The board of InStorage recommened Monday that StorageMart’s bid of $3.75 per unit be formally rejected stating it was “much too low.”  The press release is available on The Canadian Press. 

Charter Real Estate Investment Trust in its third quarter results announced aquistions.  While their distributions are lower their plan for the future is explained in their Market Watch press release. 

Third quarter results for Extendicare RIET show that stability and a measured approach to goals allow this REIT to continue in aquisitions and development even is this time of slowdown.  Read the press release from Market Watch that explains their approach and results.

InStorage REIT is still experiencing unwanted takeover bids.  They have received a hostile offer from Canadian Storage partners.  Read more about their recent takeover woes at ISS Inside Self-Storage.  

However,  Conundrum Capital Corporation has also announced that they have purchased 30,200 units of InStorage REIT bringing their total up to 1,197,800 units that they have purchase since the takeover attempts of InStorage began on October 16, 2008.  This press release is found at CNW. 

RioCan Real Estate Investment Trust, Canada’s largest REIT, declares its profit rost 16 per cent in the third quarter.  Its funds from operations rose from 36 to 37 cents a unit and, while they did experience a decrease in gains on properties held for resale and an increase in interest expense, the increase in the key industry measurement, funds from operations, allows them to report this increase.

The Canadian Press Release article has more information on this declaration.  

First Industrial Realty Trust reports a positive third quarter distribtution.  Although down from last year’s distribution, the Trust reports that it is in a good financial position with strong portfolio performance.

Read the press release. 

However, First Industrial, after the resignation of it’s longtime CEO, has also announced a lay off of 120 employees to reduce costs.  These factors all contributed to a rise in their stock value.

Read Carl Brokamp’s article in GlobeSt.com. 

The latest report by Earnst & Young published in The Earth Times reports that REITs are, perhaps, most capable of weathering the current financial storm.  Even though many companies have been hard hit global REITs are still outperforming most other investments.

Read The Earth Times article. 

Morguard REIT will be declaring a special distribution due to the expectation that it’s income will exceed expectations.  There are a number of articles that explain Morguard’s situation that are available below.  Morguard’s diversified portfolio and gains that it realized on disposition of properties earlier this year all factor in to their current positive financial state.

Read the CNW press release.

Read the Trading Markets.com press release with a more detailed analysis of Morguard’s financial status.

Colomnists are speaking of recession in this tough economic time.  However they also speak of lines of defence for portfolios during this economic slowdown.  Apartments often come up as the most defensive property type.  Read the Ottawa Citizen article by Keith Woolhouse.   

Inside Self Storage magazine reports on the Storage Mart unsolicited offer for InStorage. 

Read the article.

InStorage Real Estate Investment Trust (TXC:IS.UN) shows that their strength can hold up to a takeover bid from TKG-Storagemart.  Their stock closed on Thursday at $3.50.

Read the Canadian Press article. 

Canada’s largest self-storage unit company is experiencing a takeover bid by it’s larger, US rival, Storage-Mart.  There are many different, and often opposing, perspectives on how this predatory move will end up.

Many views:

Andrew Willis at the Globe and Mail says, in his article, that he expects a lower price for this takeover.   He also wrote an article for the Globe and Mail’s “Streetwise” blog about this predatory move by StorageMart.

John Kipphoff’s article on Bloomberg.com talks about InStorage’s stock prices. 

 WINNIPEG, Oct. 14 /CNW/ -  TMC Net Article

Artis Real Estate Investment Trust (TSX: AX.UN) (”Artis” or the “REIT”) confirmed that trading in REIT units, together with a group of other stocks, was temporarily halted on Friday, October 10th, 2008, due to a technical malfunction at the TSX. There is no material information relating to Artis that caused the trading halt.

In spite of the turbulence being experienced in global markets, Artis continues to have a very strong embedded growth profile. At June 30, 2008, Artis estimated that the gap between in place rental rates and current market rental rates was over $8 per square foot on average. Today, over 90% of the 2008 leasing program has been completed, as well as over 15% of the 2009 renewals. Management anticipates this will be an additional source of growth in revenues, Property NOI, DI and FFO per unit. 

For the complete story connect via the link above.

By: Elena Gontar, Staff Writer, Commercial Property News

Lanesborough Real Estate Investment Trust has completed the previously announced $38 million acquisition of an apartment/office complex in Winnipeg, Manitoba, known as Colony Square.

Lanesborough REIT had previously owned a 1.5 percent beneficial interest and with the acquisition now owns 100 percent of Colony Square.
 
Colony Square is fully occupied, sits on 1.89 acres and is located on the south side of Portage Avenue in Downtown Winnipeg across from the University of Winnipeg. The complex includes two apartment towers of 16 and 17 stories, a seven-story office building and an underground parking garage. The two apartment towers contain a total of 428 suites. The office building contains 80,900 square feet of leasable space, with an additional 2,255 square feet of leasable commercial space on the main floors of the apartment towers.

Lanesborough REIT is a publicly traded investment trust with a primary focus of creating portfolio of real estate investments in Canada. The REIT provides Unitholders with stable cash distributions from investment in a geographically diversified Canadian portfolio of quality real estate properties.

David Enke suggests in his article that REITs are a good investment in these difficult times.

TSX SYMBOL: HR.UN

TORONTO, Oct. 1 /CNW/ - H&R Real Estate Investment Trust (the “REIT”) (TSX: HR.UN) announced today that the internal reorganization (the “Reorganization”) of the REIT, which was approved by the REIT’s unitholders at a special meeting on September 19, 2008, has been successfully completed. The Reorganization was approved by the Court of Queen’s Bench of Alberta on September 26, 2008.

The Reorganization has resulted in the following:(i)  the completion of certain transactions in the course of which each unitholder received, for each REIT unit held, a unit of a “sister” trust (”H&R Finance Trust”). Each issued and outstanding REIT unit now trades together with a unit of H&R Finance Trust as a “Stapled Unit” on the Toronto Stock Exchange under the symbol HR.UN; and

(ii) the completion of certain transactions whereby H&R TT (LP) Inc., a wholly-owned subsidiary of the REIT, ultimately transferred all of its assets (which primarily consisted of an interest in a partnership that holds the Telus Tower in Calgary, Alberta) to the REIT.

As described in more detail in the management information circular of the REIT dated August 20, 2008 (the “Circular”), Part XIII.2 of the Income Tax Act (Canada) (the “Tax Act”) imposes a tax on each holder of REIT units that is neither a person resident in Canada for purposes of the Tax Act nor a “Canadian partnership” for purposes of the Tax Act (a “Non-Resident Holder”) equal to 15% of the fair market value of the units of H&R Finance Trust distributed to such Non-Resident Holder at the time of their distribution. It is estimated that each unit of H&R Finance Trust had a fair market value of approximately $0.91 at the effective time of the Reorganization, and therefore Part XIII.2 non-resident withholding tax of approximately $0.14 is required to be withheld in respect of each unit of H&R Finance Trust distributed to Non-Resident Holders. As described in the Circular, registered REIT unitholders who do not complete and deliver a letter of transmittal, as mailed to registered unitholders of the REIT with the Circular, in accordance with the instruction set out therein, on or prior to October 31, 2008, will be treated by the REIT as Non-Resident Holders for purposes of remittance by the REIT of non-resident withholding tax under the Tax Act (including, for the avoidance of doubt, tax under Part XIII.2 of the Tax Act). Non-Resident Holders are encouraged to consult their broker or investment adviser with regard to arrangements for remittance of any applicable Part XIII.2 non-resident withholding tax. Unitholders are encouraged to review in detail the management information circular of the REIT dated August 20, 2008 for more information.

About H&R REIT

The REIT is a TSX-listed, open-ended real estate investment trust, which owns a North American portfolio of 34 office, 124 industrial and 129 retail properties comprising 43 million square feet, with a net book value of $4.4 billion. The foundation of the REIT’s success is a disciplined strategy that leads to consistent and profitable growth.

Additional information regarding the REIT is available on the REIT’s
website at: www.hr-reit.com.

Archana Sinha of The Economic Times recommends REITs as a good investment in our tricky financial times.  He suggests that buying into a REIT helps the investor, the real estate market and the specific properties purchased.

STELLARTON, NS, Sept. 30 /CNW/ - Crombie Real Estate Investment Trust
(”Crombie”) (TSX: CRR.UN) is pleased to report that it closed today the
previously announced mortgage financing with HBOS Canada (”HBOS”) to refinance
$100 million of the bridge loan used to partially finance the portfolio
acquisition of 61 properties completed on April 22, 2008. TD Securities acted
as agent on the transaction. The fixed rate mortgages have a weighted average
7.7 year term, with a 25 year amortization, and a weighted average interest
rate of 5.91%. Factoring in the cost of delayed interest rate swap hedges
placed upon assumption of the bridge loan, the overall weighted average
interest rate is 6.09%. This overall weighted average interest rate is 26
basis points lower than the 6.35% rate used to model the pro forma accretion
of the portfolio acquisition.
    Commenting on the closing of the financing, J. Stuart Blair, President
and Chief Executive Officer stated: “While the credit markets continue to
prove to be challenging, the progress made in replacing a major portion of our
bridge loan with suitable long term financing is very encouraging. We are also
excited to be able to attract international financing as one of the early
deals completed by HBOS in Canada. We continue to have discussions with a
number of potential sources for completing the refinancing of the $180 million
bridge loan remaining.”
For more information about Crombie and this development read their press release.

Holloway Lodging REIT of Bedford, Nova Scotia saw the most advancement this year with 353 per cent growth as reported in  Progress Magazine’s rankings for the Top 101 companies in Atlantic Canada.

WINNIPEG - Huntingdon Real Estate Investment Trust (TSX:HNT.UN), a Winnipeg-based property trust,  says it has sold properties in Winnipeg and Red Deer, Alta. for $11.3 million.

The total gain on the two property sales totals $1.5 million, with $4.8 million in net cash proceeds after  repaying the mortgage.

The trust, which put itself up for sale during the summer, owns 79 income producing office, industrial,  retail and standalone parking lot properties in Manitoba, Ontario, Saskatchewan, Alberta, British  Columbia and the Northwest Territories.

VICTORIA, BRITISH COLUMBIA–(Marketwire - Sept. 24, 2008) - League Assets Corporation leads the ranks as top revenue generator for 2007 among Canada’s top 10 hot start-up companies, as announced today by the award-winning PROFIT: Your Guide to Business Success, in its 9th annual PROFIT HOT 50 Emerging Growth Companies ranking.

League Assets Corp. manages the IGW REIT, one of North America’s fastest growing private Real Estate Investment Trusts, comprising a portfolio of Canadian commercial and retail properties with combined assets approaching $300 million. The trust exists to find, acquire, improve and manage large and lucrative real estate properties across the nation, and to offer shared ownership in these assets to other like-minded investors - referred to by League as its Member-Partners. Combined with its other investment pools, League is currently managing and developing assets with approximate build-out values totalling $2 billion.

“League is proud to receive this honour on behalf of its more than 1,200 Member-Partners and its extraordinary team of investment and real estate development professionals,” said CEO Adam Gant.

The PROFIT HOT 50 is the definitive ranking of Canada’s Emerging Growth Companies. Published in the October issue of PROFIT magazine and online at www.PROFITguide.com, the PROFIT HOT 50 ranks young firms by two-year revenue growth.

“The PROFIT HOT 50 companies illustrate the ingenuity and vitality of Canada’s entrepreneurial sector. Any one who wants to start or grow a business can draw much inspiration and many lessons from the HOT 50,” says Ian Portsmouth, editor of PROFIT.

To view the ranking and related stories: http://www.profitguide.com/hot50

About PROFIT Magazine:

PROFIT: Your Guide to Business Success, is Canada’s preeminent publication dedicated to the management issues and opportunities facing small and mid-sized businesses. For more than 25 years, Canadian entrepreneurs across a vast array of economic sectors have remained loyal to PROFIT because it’s a timely and reliable source of actionable information that helps them increase their revenues, boost their profitability and get the recognition they deserve for generating positive economic and social change. Published six times a year by Rogers Publishing Ltd., PROFIT is distributed almost exclusively to the chief executives of companies with 5 - 250 employees and annual revenue of $1 million to $25 million, reaching more than 300,000 readers across Canada. Visit PROFIT online at www.PROFITmagazine.ca.

For further information about League Assets, see www.League.ca. Download League’s Backgrounder from: http://www.league.ca/pdf/league_backgrounder.pdf.

Emanuel Arruda, Chairman

League Assets Corporation

CHICAGO-First Industrial Realty Trust, based here, has extended its $5 billion joint ventures with California State Teachers’ Retirement System through the end of 2018. The ventures mostly had 10-year terms and were started at various times throughout the past few years, with industrial properties spread throughout the US, Canada and Europe.   In an article in the GlobeSt.com explains the details of this extension and expansion of the international REIT.

Allied Properties REIT (TSX:AP.UN) announced today that the Trustees of the REIT have declared a distribution of $0.11 per unit for the month of September, 2008, representing $1.32 per unit on an annualized basis. The distribution will be payable on October 15, 2008, to unitholders of record as at September 30, 2008. The REIT has 31,118,441 units issued and outstanding.

Allied Properties REIT is the leading owner and manager of Class I office properties in Canada, with portfolio assets in the urban areas of Toronto, Montreal, Winnipeg, Quebec City and Kitchener. The objectives of the REIT are to provide stable and growing cash distributions to unitholders and to maximize unitholder value through effective management and accretive portfolio growth.

TORONTO, Sept. 19 /CNW/ - H&R Real Estate Investment Trust (the “REIT”)
(TSX: HR.UN) announced today that the REIT’s unitholders approved an internal
organization (the “Reorganization”) of the REIT which was previously announced
by the REIT in its May 16, 2008 Press Release. The Reorganization was approved
by 99.8% of the votes cast in person or by proxy by the REIT’s unitholders at
the special meeting.

The Reorganization would result in the following:

    (i)    the completion of certain transactions in the course of which each
           unitholder would receive, for each REIT unit held, a unit of a
           “sister” trust (”H&R Finance Trust”). Thereafter, each issued and
           outstanding REIT unit would trade together with a unit of H&R
           Finance Trust as a “Stapled Unit”; and
    (ii)   the completion of certain transactions whereby H&R TT (LP) Inc., a
           wholly-owned subsidiary of the REIT, would ultimately transfer all
           of its assets (which primarily consist of an interest in a
           partnership that holds the Telus Tower in Calgary, Alberta) to the
           REIT.

    The Reorganization will require the approval of the Court of Queen’s
Bench of Alberta, and the REIT has scheduled such approval for September 26,
2008. Subject to the Court’s approval, the REIT anticipates that the effective
date of the Reorganization will be October 1, 2008.

    As described in more detail in the management information circular of the
REIT dated August 20, 2008, Part XIII.2 of the Income Tax Act (Canada) (the
“Tax Act”) imposes a tax on each holder of REIT units that is neither a person
resident in Canada for purposes of the Tax Act nor a “Canadian partnership”
for purposes of the Tax Act (a “Non-Resident Holder”) equal to 15% of the fair
market value of the units of H&R Finance Trust at the time of their
distribution. It is anticipated that each unit of H&R Finance Trust will have
a fair market value of approximately $0.91 on October 1, 2008, being the
effective date of the Reorganization, and therefore Part XIII.2 non-resident
withholding tax of approximately $0.14 is required to be withheld in respect
of each unit of H&R Finance Trust distributed to Non-Resident Holders.
Non-Resident Holders are encouraged to consult their broker or investment
adviser with regard to arrangements for remittance of any applicable Part
XIII.2 non-resident withholding tax. On the effective date of the
Reorganization the REIT will issue a press release (which will be made
available on its website at www.hr-reit.com) disclosing the amount of
non-resident withholding tax payable by Non-Resident Holders per Finance Trust
Unit distributed. Unitholders are encouraged to review the management
information circular of the REIT dated August 20, 2008 in detail for more
information.

About H&R REIT

    The REIT is a TSX-listed, open-ended real estate investment trust, which
owns a North American portfolio of 34 office, 124 industrial and 129 retail
properties comprising 43 million square feet, with a net book value of
$4.4 billion. The foundation of the REIT’s success is a disciplined strategy
that leads to consistent and profitable growth.

Canadian Tire Corp. has sold 11 stores to two Canadian real estate trusts for $164.6 million in deals announced Monday.

Canadian Real Estate Investment Trust, commonly known as CanReit, will buy eight properties for $137 million. Charter Real Estate Investment Trust will purchase three other stores for $27.3 million.

Canadian Tire will continue to run the stores but will now lease these facilities and pay rent to the two companies.

See the full story on CBC.com at:  http://www.cbc.ca/money/story/2008/09/08/canadiantire.html

Retrocom Mid-Market REIT is an Ontario unincorporated open-end real estate investment trust which focuses on owning and acquiring mid-market commercial properties in primary and secondary cities across Canada with the objective of producing a geographically diversified portfolio of properties with stable and growing cash flows.

Retrocom Mid-Market Real Estate Investment Trust (TSX:RMM.UN) (the REIT) announced today that the cash distribution for the third quarter of 2008 will be $0.1125 per unit, or $0.45 per unit on an annual basis. The cash distribution for the third quarter of 2008 is for the period from and including July 1, 2008 to and including September 30, 2008 and will be payable on October 15, 2008 to Unitholders of record as of September 30, 2008. The REIT also announced that monthly distributions will recommence with the distribution for the month of October 2008, payable on November 15th, 2008, at an anticipated rate of $0.0375 per unit or $0.45 per unit on an annual basis. The REIT anticipates that it will announce the October 2008 distribution in mid-October 2008.

The REIT has initiated an extensive review of its portfolio that will result in up to 10 properties being redeveloped/repositioned to increase occupancy, and in some instances, gross leasable area. The decrease in the annual distribution rate from $0.60 to $0.45 per unit results in an approximate $4.1 million annual reduction in cash distribution, which along with proceeds from financings and selective and strategic dispositions is part of a plan to ensure sufficient funds, will be available to undertake the redevelopment projects.

“Through the utilization of SmartCentres’ capabilities, The REIT is able to contemplate a wider variety of redevelopment scenarios, much more than it could have done previously by itself” said David Fiume, President and CEO of Retrocom Mid-Market REIT. Fiume continued, “When the board proposed the transaction with SmartCentres, the goal was to align the REIT with one of the best real estate companies in Canada, one that would provide opportunities for change in direction and strategy. This transaction was overwhelmingly approved by its Unitholders and we believe that this relationship will enhance value for Unitholders in the long term.”

The REIT also announced today the successful completion of the purchase from Canadian Tire Corporation of a property adjoining Mountainview Mall in Midland, Ontario, together with the successful refinancing of the Mountainview Mall, including the purchased property. The transaction adds two national tenants with strong covenants and long term leases, Staples and PartSource, to this property. The proceeds of the financing of $16.8 million at an annual rate of 6.45% were used to repay the existing first mortgage on the property and to pay down the REIT’s bridge loan, which in July 2008 was $33.5 million, to approximately $17.1 million. As a result of this repayment the REIT has already met the requirement to pay down the bridge loan to $20 million or less by July 2009.

For more information see:  http://www.marketwire.com/press-release/Retrocom-Mid-Market-Real-Estate-Investment-Trust-TSX-RMM.UN-900346.html

Canadian Press:   Sep 12, 2008 10:45 AM

WINNIPEG–Temple Real Estate Investment Trust will acquire the Capri Centre, a full service hotel, trade and conference centre in Red Deer, Alta. for $40 million.

The property is on a five-hectare parcel of land in Red Deer, a city located on the main highway between Calgary and Edmonton, the most heavily travelled north-south route in Alberta.

Temple plans an $8 million capital upgrade program over the next year and will license the hotel with the Sheraton brand name in 2009, the company said.

The Winnipeg-based property trust owns hotels in Western Canada.

In Friday trading on the TSX Venture Exchange, Temple units rose 10 cents to $9.40.

Sobey’s various companies announce good news in a celabratory way!  Find the full story by Steve Proctor, the Business Editor for the Chronicle Herald at:

http://thechronicleherald.ca/Business/1078473.html

The full story is on Market.com.  Find the full story at:  http://www.tradingmarkets.com/.site/news/Stock%20News/1877365/

One of Winnipeg’s most illustrious buildings celebrates its 100th anniversary this year. To mark the occasion, two large murals by artist Hubert Theroux were unveiled at the historic Grain Exchange Building at 167 Lombard Ave., yesterday.

The refurbished heritage building has seen a revival under the ownership of Artis REIT and management of Marwest Management Canada. It now boasts an office vacancy rate of 6%.

Read the full story by Simon Fuller, Sun Media at:  http://winnipegsun.com/News/Winnipeg/2008/09/11/6729226-sun.html

MarketWatch published Charter REITs acquirement of Canadian Tire Portfolio,  secures $10 M in credit facilities, and reduces distribution to $0.16 per unit to strengthen balance sheet and fuel future growth.  Charter REIT is an open-ended real estate investment trust established under the laws of the Province of Ontario.

Canadian Real Estate Investment Trust paid $137.3 million U.S. to buy eight retail properties in five provinces from Canadian Tire Corp. The properties are all leased to Canadian Tire for 15 years at current market rents, the Toronto-based REIT said. Each of the properties is either newly constructed or was renovated within the past three years, Canadian REIT said. Three of the stores are in Alberta, two in Quebec and the others are in British Columbia, Ontario and Nova Scotia, it said.

Read the full article at: http://www.marketwatch.com/news/story/charter-reit-tsx-v-crhun-acquires/story.aspx?guid=%7B4D1F938E-4539-4166-AC13-05A69116D41C%7D&dist=hppr

Also read related articles at GlobeSt.com and Canadian Press:

http://www.globest.com/news/1240_1240/canada/173637-1.html

http://canadianpress.google.com/article/ALeqM5iVnRevEcTluYpkpggsISppTzbwXA

Barry Critchley of the Financial Post explains the internal reorganization of H&R Trust in his September 5 article “H&R’s stapled diet.  Read it at:  http://www.financialpost.com/analysis/columnists/story.html?id=1c0f7f58-48b8-478e-b3e3-e59556a8be72

John Heinzl from the Globe and Mail comments that Canadian REITs are actually gaining in this “ug-lee” market situation.  Read his column at:   http://www.theglobeandmail.com/servlet/story/RTGAM.20080903.wheinzl0904/BNStory/energy/home

Global real estate investment trusts continue to deliver attractive distribution yields, as other asset classes face ongoing volatility, funds manager ING Clarion Real Estate Securities said.

ING Clarion portfolio manager Steve Burton said investors needed to maintain a long-term view, diversify their portfolios and decrease risk through indirect investment in international property trusts.

Read the remainder of this article at:  Property investments delivering:  ING

http://news.theage.com.au/business/property-investments-delivering-ing-20080903-48sv.html

 H&R REIT calls special meeting to consider previously announced internal reorganization.

The meeting announcement can be found at:  http://www.newswire.ca/en/releases/archive/August2008/27/c7476.html

August 22, 2008

Jim Knisley from the Sachem reports that Wal-Mart has dropped plans for a major development in Dunnville, Quebec.  Calloway REIT was prepared to start developing the property and preparing it for Wal-Mart 14 months ago. But after a visit by members of the Six Nations and a discussion with the OPP, Calloway and Wal-Mart put the plans on hold.

Find the full story at:  http://www.sachem.ca/news/article/140566

 August 22, 2008 by ruziik_tuzik - Huliq News

August 20, 2008

The season for Real Estate Investment Trusts to report second-quarter earnings has come to an end, and RBC Capital Markets analyst Neil Downey says that more than 50% of the companies he covers had earnings in-line with expectations, while 25% posted higher results and 25% posted lower.

“Mathematically, the magnitude of the the shortfalls exceeded the upside surprises,” he said in a research note.  The result was slightly lower than expected average growth rates for the industry. “Interestingly, there was very little in the way of themes,” he said, related to specific property sectors, market capitalization, or geography which drove a disproportionate share of upside or downside surprises.

However, the analyst still has “outperform” ratings on a number of REITS, listed below with his comments on the second quarter of each:

Allied Properties REIT: good performance marred by acquisition-related dilution.
Boardwalk REIT: healthy but moderating sales-price Net Operating Income (NOI) growth.
Brookfield Asset Management: solid results powered by hydro and core commercial property
Brookfield Properties: decent leasing velocity, healthy spreads offset by lower-than-expected land and housing profits.
Calloway REIT: dilution from May 2008 convertible debt debenture hurt second quarter.  
Chartwell Seniors Housing REIT : short on NOI and net fee income
Canadian REIT : Sales-price NOI growth driven by rate gains, as sales-price occupancy moderately lower.
First Capital Realty : modest internal growth driven by occupancy uptick and increased rents.
H&R Reit : in-line results slightly understated, reflecting unrealized foreign exchange loss and stronger Canadian dollar.
InnVest REIT: had a great quarter. “Did anyone notice?”
Morguard REIT: stable occupancy and rate gains.
Northern Property REIT: top line growth reflects improved “Execusuite” performance and higher occupancy in Yellowknife and Newfoundland.
Primaris Retail REIT: exceptional liquidity boosted by Stone Road Mall financing.

 Zena Olijnyk

http://network.nationalpost.com/np/blogs/tradingdesk/archive/2008/08/20/magnitude-of-q2-reit-downside-earnings-surprises-beat-those-on-upside.aspx

August 18, 2008

Calloway REIT (TSX: CWT.UN)(TSX: CWT.DB)(TSX: CWT.DB.A) today announced that the trustees of the REIT have declared a distribution for the month of August 2008 of CDN$0.129 per trust unit, representing CDN$1.548 per unit on an annualized basis. Payment will be made on September 15, 2008 to unitholders of record on August 29, 2008.

Calloway Real Estate Investment Trust is an unincorporated open-end real estate investment trust created to invest in a geographically diversified portfolio of high quality retail shopping centres in Canada.

August 18, 2008

CALGARY — Boardwalk Real Estate Investment Trust (TSX:BEI.UN), a Calgary-based rental property owner, says the Toronto Stock Exchange has accepted the trust’s plan to buy back more than four million trust units, or 10 per cent of its publicly traded securities.

Boardwalk said Monday it plans to repurchase and cancel the units, which the company believes are undervalued. The trust said it bought more than 2.5 million trust units over the last year at an average price of $41.16.

By buying back its units, Boradwalk reduces its equity base, spreading profits over fewer shares. That increases its return on equity and earnings per unit, two key ratios used to determine a company’s financial health and investment rating.

In addition, most share buybacks lead to stock price increases as there are fewer shares on the market for investors.

“Boardwalk’s management is initiating this program as it feels that, at current market prices, an investment in Boardwalk’s own high quality portfolio will deliver strong returns for unitholders and represents an effective use of its capital and steadily increasing cash flows,” the property owner said.

“At the same time, Boardwalk plans to continue its property acquisition and capital improvement programs.”

Boardwalk, with a stock market value of $4.1 billion, is Canada’s largest owner-operator of multi-family rental units, with more than 260 properties, concentrated in Alberta, British Columbia, Saskatchewan, Ontario and Quebec.

August 18, 2008

TORONTO, ONTARIO, Aug 18, 2008 (MARKET WIRE via COMTEX) —-Allied Properties REIT (TSX: AP.UN) announced today that the Trustees of the REIT have declared a distribution of $0.11 per unit for the month of August, 2008, representing $1.32 per unit on an annualized basis. The distribution will be payable on September 15, 2008, to unitholders of record as at August 29, 2008. The REIT has 31,086,547 units issued and outstanding.

Allied Properties REIT is the leading owner and manager of Class I office properties in Canada, with portfolio assets in the urban areas of Toronto, Montreal, Winnipeg, Quebec City and Kitchener. The objectives of the REIT are to provide stable and growing cash distributions to unitholders and to maximize unitholder value through effective management and accretive portfolio growth.

Aug 15, 2008

Royal Host Real Estate Investment Trust (”Royal Host”) (TSX:RYL.UN) (TSX:RYL.DB.A) (TSX:RYL.DB.B) (TSX:RYL.DB.C) (TSX:RYL.DB.D) has declared a distribution of $0.055 per unit, payable September 15, 2008, to Unitholders of record on August 29, 2008. This distribution is the 130th consecutive monthly distribution to Unitholders and brings the total funds distributed to $7.47 per unit since Royal Host’s inception.

Royal Host is a uniquely diversified hospitality trust that delivers Unitholder value through hotel ownership, investment, management and franchising. Royal Host’s portfolio of Canadian hotels operates under a variety of recognizable brands as well as a number of unbranded properties. The Trust’s hotel portfolio is further enhanced by a stable franchising business, a successful hotel management operation, and a portfolio of publicly-traded securities from within the hospitality and service sectors.

Aug 14, 2008

Canadian Apartment Properties Real Estate Investment Trust (TSX:CAR.UN) logged a $3.4-million profit in the second quarter, pulling itself out of year-ago losses as more people rented units on the REIT’s properties.

CAP’s earnings were worth five cents per basic unit for the quarter ended June 30, compared to a $59 million loss, or 99 cents per unit, a year earlier.  Operating revenues moved ahead 10 per cent to $79 million, from $71.5 million, on acquisitions and higher rent prices and occupancy rates.  The trust said that occupancy rates were stable at about 99.7 per cent.  Average rent prices grew to $935 a month compared to $902 a year earlier, and the company’s management said that the trend towards gradual monthly rent price increases will likely continue for the foreseeable future.

“The outlook for the Canadian residential rental business continues to improve,” said the trust’s president and chief executive Thomas Schwartz in a release. “Demand continues to grow, driven by the high cost of home ownership, tightened availability for home purchase financing, increased immigration, and a rapidly growing seniors population that views rental accommodation as a cost-effective choice.”

CAP REIT owns interests in 27,324 residential suites and two land lease communities comprising 1,267 sites.

August 14, 2008

Whiterock REIT announced record results for this quarter.  Whiterock CEO, Jason Underwood, said “Our record results this quarter continue to demonstrate the strenght of our portfolio.”

Read Whiterock’s financial highlights at: 

http://www.newswire.ca/en/releases/archive/August2008/14/c4031.html

August 14, 2008

Boardwalk REIT said Thursday its funds from operations, a key measure of performance for real estate companies, rose 13 per cent in the second quarter as economic strength in Western Canada help lift rental revenues. 

Read articles on Boardwalk’s results at the following sites:

http://www.reuters.com/article/marketsNews/idUSN1442353720080814

http://www.globeinvestor.com/servlet/story/RTGAM.20080814.wboardwalkreit0814/GIStory/

http://www.canada.com/edmontonjournal/news/business/story.html?id=a285c663-2e66-4e79-acdd-ec7e69e2a32a

http://www.earthtimes.org/articles/show/boardwalk-reit-announces-solid-second,505161.shtml

August 12, 2008

Rental landlord Canadian Apartment Properties Real Estate Investment Trust (TXS: CAR.UN) says it plans to acquire a 137-suite 10-story apartment building in Victoria for $14.2 million.  The transaction is slated to close August 29, the trust said Tuesday.

Current average rents are well below market and the trust said it expects to get significant rent increases when the apartments turn over.  “We are please to be acquiring this valuable property and further diversifying our portfolio on one of Canada’s strongest rental markets,” said Thomas Schwartz, president and CEO of the trust.  “Once completed, we will have 1,799 suites, or 6.3 per cent of the total portfolio, located in British Columbia.  Utilizing our experienced property management team and infrastructure in the region, we look forward to further expanding our presence in this high-growth market.”  CAP REIT owns 27,324 apartments in buildings from coast to coast.

Aug 12, 2008

CALGARY — Royal Host REIT (TSX:RYL.UN), a Calgary-based hotel operator, earned $18 million in the second quarter, up from $4.8 million in the same period last year.

Royal Host’s earnings amounted to 84 cents per unit for the three months ended June 30, up from 18 cents in the same period last year.

Distributable income increased to $7.7 million from $6.5 million, while hospitality revenue from continuing operations increased to $35.1 million from $34.6 million last year.

Revenue per available room, an industry benchmark known as revpar, was $67.64 in the quarter, versus $67.55 in 2007.

Royal Host has a portfolio of 31 Canadian hotels under a variety of brands.

Its units traded up five cents on the TSX at $6.75.

August 8, 2008

Sun Communities, Inc. is a real estate investment trust (REIT) that currently owns and operates a portfolio of 136 communities, comprising approximately 47,600 developed sites and approximately 6,200 sites suitable for development, mainly in the Midwest and Southeast United States.

Their web site and earnings postings can be found at:  www.suncommunities.com

Rental market conditions continued to be extremely robust in several key
NPREIT markets. Yellowknife, Fort McMurray and Iqaluit experienced essentially
nil vacancy during the quarter and very tight vacancy conditions are beginning
to emerge in St. John’s. However, the northern BC/Grande Prairie Region, which
is sensitive to the forest industry, experienced higher vacancy. Increased
activity in the natural gas and coal industries is expected to mitigate this
vacancy over time.

Read the full story on CNW Group at:  http://www.newswire.ca/en/releases/archive/August2008/07/c2142.html

August 7, 2008

H & R REIT announced today that its distributable cash increased by 8% in the three months ended June 30,2008 compared to the second quarter last year, primarily due to H&R’s property acquisitions and contractual rent excalations.  H&R’s cash distributions increased 12% In the second quarter comared to the same quarter last year.

Read the full story posted on CNW Group web site at: 

http://www.newswire.ca/en/releases/archive/August2008/07/c2556.html

The Board of Trustees of the REIT today declared a cash distribution of $0.0925 per unit for the month of August 2008, payable to unitholders of record at the close of business on August 29, 2008, and will be paid on September 15, 2008.

Extendicare Limited Partnership (the “Partnership”) also announced that it has declared a cash distribution of $0.0925 per Class B limited partnership unit for the month of August 2008, payable to unitholders of record at the close of business on August 29, 2008, and will be paid on September 15, 2008.

Extendicare REIT, through its wholly owned subsidiaries, is a major provider of short and long-term care services for seniors in North America. They operate 268 nursing and assisted living facilities in North America, with capacity for approximately 30,300 residents. As well, they offer medical specialty services such as subacute care and rehabilitative therapy services in the United States, and home health care services in Canada, and employ approximately 38,100 people in North America.

Read the full story on Market Watch at:  http://www.marketwatch.com/news/story/extendicare-reit-announces-2008-second/story.aspx?guid=%7BD66CC80D-218C-4F7A-B4DC-DCC342515370%7D&dist=hppr

August 5, 2008

Boardwalk REIT is Canada’s largest owner/operator of multi-family rental communities. Boardwalk REIT currently owns and operates in excess of 260 properties with 36,784 rental units totaling approximately 31 million net rentable square feet. The Trust’s portfolio is concentrated in the provinces of Alberta, British Columbia, Saskatchewan, Ontario and Quebec. Boardwalk REIT’s Trust units are listed on the Toronto Stock Exchange, trading under the symbol BEI.UN. The Trust’s total Enterprise Value is approximately $4.1 billion.

Boardwalk Real Estate Investment Trust (”BEI.UN” - TMX) announced July 30, 2008 that the extraordinary meeting of the holders of 5.31% convertible debentures due January 23, 2012 (the “Debentures”) of Boardwalk REIT was held July 30, 2008 in Calgary, as previously announced. Boardwalk is pleased to report that, at the meeting, all resolutions put forth were approved by the requisite majority of debentureholders.

Read the details on FoxBusiness at: 

http://www.foxbusiness.com/story/markets/industries/finance/boardwalk-announces-results-extraordinary-meeting-debentureholders—amendments/-1844409423

As Weyerhaeuser faces intensifying pressure to shed more businesses and become a pared-down cow, moving their focus to Real Estate Investment Trusts, is investigating all options.  Weyerhaeuser spokesman Frank Mendizabal said that a conversion to a REIT would be a complex undertaking.  Read the article in the Seattle Times by Kyung M. Song that explores this option for Weyerhaeuser.   

http://seattletimes.nwsource.com/html/businesstechnology/2008088353_weyco030.html

August 3, 2008

Ventas owns more than 500 properties across the United States and two in Canada. Most are senior housing, but the holdings also include nursing centers, hospitals and medical offices.  Ventas is a landlord, not a health care provider and this plays strongly in their success.

David Roeder of the Sun-Times Columnist wrote an article posted at the link below:

http://www.suntimes.com/business/roeder/1087809,CST-FIN-curious03.article

July 31, 2008

Even with a softening market Keith Woodhouse of the Ottawa Citizen believes that Canadian REITs may still be a good option.  Read his full story at: 

http://www.canada.com/ottawacitizen/news/bustech/story.html?id=789321d4-0596-4618-834d-75766569c124

Thursday, July 31, 2008

Morguard Real Estate Investment Trust (”Morguard REIT”) (TSX: MRT.UN) today announced its financial results for the three and six-month periods ended June 30, 2008.

Read the full report on Fox Business at:

http://www.foxbusiness.com/story/markets/industries/finance/morguard-real-estate-investment-trust-announces-q–results/-1169680069

Intensification of land uses seen as cost effective while sparing neighbourhoods of yet more high-rise condos

RioCan became the first REIT to begin the process of making better use of its large pool of land by intensifying the size and number of structures that sit on it.  This insightful, forward looking perspective promises to revolutionize the way Canada’s 30-plus publicly traded real estate companies treat their holdings.

Read the full story by Terrence Bellford, in a special report for the Globe and Mail at: 

http://www.theglobeandmail.com/servlet/story/LAC.20080729.PRCONDOS29/TPStory/Business

July 28, 2008

Tuesday, July 22, 2008

TORONTO, ONTARIO, Jul 22, 2008 (MARKET WIRE via COMTEX) —-InterRent Real Estate Investment Trust (TSX: IIP.UN) (”InterRent”) announced today that its distribution declared for the month of August, 2008 is $0.0217, per REIT unit, equal to $0.26 per REIT unit on an annualized basis, representing an annual yield of approximately 10.53% based on the July 21, 2008 REIT unit closing price of $2.47 per REIT unit. Payment will be made on or about August 15, 2008 to REIT unit holders of record on July 31, 2008. At the close of business on July 21, 2008, InterRent had 18,289,872 REIT units issued and outstanding, including class “B” units of InterRent Holdings Limited Partnership.

Dividend Reinvestment Program (DRIP)

InterRent also offers to its unit holders a Dividend Re Investment Plan (DRIP), whereby current unit holders can elect to receive their distributions in units instead of cash. Units purchased through reinvestment of distributions will be purchased at 96% of the Average Market Price of the Units for the 10 trading days preceding the distribution payment date. Units acquired under the DRIP will be issued directly from InterRent’s treasury. The full text of the DRIP and an enrolment form are available on InterRent’s website at www.interrentreit.com

Read the full story at:

http://www.foxbusiness.com/story/markets/industries/finance/interrent-reit-announces-august-distributions-timing-second-quarter-conference/-1009519726

July 22, 2008,

Real estate investment trusts (Reits) should stabilise in the next half year following a worldwide decline over the last quarter, according to Standard and Poor’s (S&P).

Read the article by Nice Rice of the Investment Advisor at:

http://ftadviser.com/InvestmentAdviser/Investments/AssetClass/Property/REITs/News/article/20080722/413eb788-57d2-11dd-8ef1-0015171400aa/IA-p17-280708-SP.jsp

Jul 22, 2008 04:30 AM

http://www.thestar.com/Business/article/464553

RioCan Real Estate Investment Trust, Canada’s largest shopping mall owner, says a retail partnership it’s part of has sold a 20 per cent stake in the Quartier Dix30 retail complex near Montreal to a unit of the Hydro Quebec Pension Fund. Financial terms of yesterday’s deal were not revealed.

RioCan said the buyer of the 20 per cent stake from original partner Devimco Inc. was a numbered company, 2946-8964 Quebec Inc. The buyer is part of the Hydro Quebec pension fund, resulting in a restructuring of the co-ownership partnership of the retail property. RioCan will continue to own 50 per cent of the Quartier Dix30 complex, a mall development in Brossard, south of Montreal.

The remaining 50 per cent will now be jointly owned by Hydro Quebec Pension Fund, with 20 per cent, the Fonds de placement immobilier BB, at 15 per cent, the Société de transport de Montréal Employees Pension Fund, at nine per cent, and the City of Quebec Employees Pension Fund, with six per cent.

RioCan is Canada’s largest real estate investment trust with a market value of $7.5 billion

Jul 22, 2008

Levis is an eastern Quebec community just south of Quebec City.

“This strategic acquisition demonstrates our ongoing commitment to doubling our asset value in our first three years as a REIT,” said Evelyn Sutherland, chief financial officer of Scott’s REIT.

“Featuring four well-known brands in Quebec, we expect this recently built property to benefit from the high traffic of this growing area.”

The property was acquired for $6 million.

Scott’s REIT is Canada’s largest small-box retail property owner with 205 properties in seven provinces across Canada.

Friday, July 18, 2008

WINNIPEG, Jul 18, 2008 (Canada NewsWire via COMTEX) —-Artis Real Estate Investment Trust (TSX: AX.UN) (”Artis” or the “REIT”) announced that its trustees have declared its regular monthly cash distribution of $0.09 per trust unit (”Unit”) of Artis for the month of July, 2008. The cash distributions will be made on August 15, 2008 to Unitholders of record on July 31, 2008.

As at the date hereof, there are an aggregate of 32,985,613 Units and Class B exchangeable limited partnership units of AX L.P. issued and outstanding.

Artis is a growth-oriented real estate investment trust focused exclusively on commercial properties located in primary and growing secondary markets in western Canada, particularly in Alberta. The REIT’s goal is to provide Unitholders the opportunity to invest in high-quality western Canadian office, retail and industrial properties, as well as to provide monthly cash distributions that are stable, tax efficient, and growing over time.

Artis owns approximately $1.3 billion of commercial property, comprising approximately 6.4 million square feet of leasable area in 86 properties. Leasable area is approximately 30.7% in Manitoba, 7.8% in Saskatchewan, 55.9% in Alberta, and 5.6% in B.C.; by asset class the portfolio is 33.0% retail, 41.6% office and 25.4% industrial.

The REIT’s Distribution Reinvestment Plan (”DRIP”) allows Unitholders to have their monthly cash distributions used to purchase trust units without incurring commission or brokerage fees, and receive bonus units equal to 4% of their monthly cash distributions. More information can be obtained at www.artisreit.com.

The Toronto Stock Exchange (TSX) does not accept responsibility for the adequacy or accuracy of this press release.

Friday, July 18, 2008

Allied Properties REIT (TSX: AP.UN) announced today that the Trustees of the REIT have declared a distribution of $0.11 per unit for the month of July, 2008, representing $1.32 per unit on an annualized basis. The distribution will be payable on August 15, 2008, to unitholders of record as at July 31, 2008. The REIT has 31,054,412 units issued and outstanding.

Allied Properties REIT is the leading owner and manager of Class I office properties in Canada, with portfolio assets in the urban areas of Toronto, Montreal, Winnipeg, Quebec City and Kitchener. The objectives of the REIT are to provide stable and growing cash distributions to unitholders and to maximize unitholder value through effective management and accretive portfolio growth.

Leben REIT’s sale of eight Alberta properties to Whiterock REIT for $80 million has been completed.  With the closing of this acquisition, Whiterock’s portfolio consists of 41 properties totalling 3.1 million square feet, located in 13 primary and secondary markets across Canada, including Calgary, Edmonton, Regina, Saskatoon, Toronto, Ottawa, Montreal and Quebec City. The average lease term is approximately 7.9 years, with approximately 61% leased to government or investment grade firms.  At the close of market on July 16th, 2008, Whiterock’s units provided a yield of 11.3%.

Stories on this sale can be found at the following sites:

http://www.foxbusiness.com/story/markets/industries/finance/leben-reit-completes-sale-alberta-properties-whiterock-reit–million/

http://www.istockanalyst.com/article/viewiStockNews+articleid_2406658&title=Whiterock_REIT_Closes.html

http://www.cnw.ca/fr/releases/archive/July2008/17/c5362.html

From the Times Colonist:  July 15, 2008

http://www.canada.com/victoriatimescolonist/news/business/story.html?id=059c5261-0a5b-4c84-bd34-b521f6fd37eb

OTTAWA — Federal Finance Minister Jim Flaherty released draft legislation yesterday that would amend federal tax laws to implement a series of previously announced initiatives, including changes that would allow REITs to expand abroad and still be exempt from the pending federal tax on income trusts.

The final legislation, to be tabled in the fall, would implement measures announced as part of the last federal budget, but other items as well, most notably dealing with real estate investment trusts, or REITs.

Under the proposal, announced Dec. 20, the federal Department of Finance said Canadian REITs would be allowed to expand abroad and still be exempt from the income-trust tax.

The federal government originally stipulated that REITs had to derive a minimum of 75 per cent of its income from Canada in order to be exempt from the income trust tax, which takes effect in 2011.

But that changed in December, and the real estate industry applauded the move.

Stakeholders have until Sept. 15 to issue comments to Finance regarding the proposed tax changes.

Hotels & Resorts, Inc. (NYSE:HST) released the second quarter earnings for 2008 on Wednesday, July 16.  A conference call was held that morning at 10:00 am ET to discuss the financial results.  To hear the conference call, a webcast will also be available on the company’s website at hosthotels.com.

Host Hotels & Resorts, Inc. operates as a self-managed and self-administered real estate investment trust (REIT). It owns properties and conducts operations through Host Hotels & Resorts, L.P., which is a limited partnership, of which Host Hotels & Resorts, Inc. is the sole general partner, and in which it holds approximately 97% of the partnership interests.

As of February 25, 2008, the Company’s lodging portfolio consisted of 119 luxury and upper-upscale, full-service hotels containing approximately 63,900 rooms. Its portfolio is geographically diverse with hotels in most of the metropolitan areas in 26 states, Washington, D.C.; Toronto and Calgary, Canada; Mexico City, Mexico, and Santiago, Chile.

Additionally, the Company owned a 32.1% interest in a joint venture in Europe (European joint venture) that owns 10 luxury and upper-upscale hotels located in Italy, Spain, Poland, Belgium and the United Kingdom with approximately 3,200 rooms.

Retrocom Mid-Market Real Estate Investment Trust announced the closing, on July 9, 2008, the $55 million purchase of four properties in the Greater Toronto Area from a group of vendors lead by Mr. Mitchell Godlhar, owner of SmartCentres Inc.  The purchase price represents a 9% capitalization rate.  The approximate 522,915 of gross leasable area currently has an occupancy rate of 98% with a number of high quality tenants.   The properties will give Retrocom a presence in the Greater Toronto area and creates an ongoing relationship with the vendors, with both management opportunites and future warrants to purchase.  For more information read the Retrocom press release: 

Aug 22, 2008

Investors trying to get a read of where the Canadian real estate investment trust market is going should look to the United States, says Blackmont Capital analyst Gail Mifsud.

“How do Canadian REIT stocks perform in a slowing or recessionary economy?” says the analyst in a note. “Unfortunately, the Canadian REIT market is relatively new, with only a few selected REITs dating back to the early 1990s.”

Instead, she looked at U.S. REIT performance dating back to the early 1970s. What she found is U.S. equity REITs have for the most part outperformed the broader market index since the early 1970s with only exception from 1997 to 1999 during the dot.com bubble period.

“If we look at the direction of the indices over the past year, we see REITs are headed higher while the broader market is weakening,” says Ms. Mifsud, who expects the trend to continue.

Garry Marr

http://network.nationalpost.com/np/blogs/tradingdesk/archive/2008/08/21/reits-beat-the-market-in-slowing-economy.aspx

On August 14th, Royal Host REIT, a Calgary-based hotel operator with a portfolio of 31 Canadian hotels that operate under a variety of brands, declaired an increase in their earnings this year.  Earnings declaired for the second quarter was $18 , up from $4.8 million in the same period last year. Royal Host REIT’s(TSX:RYL.UN) unites traded up five cents on the TSX at $6.75.

For more information go to the Canadian Press story on this matter.

http://canadianpress.google.com/article/ALeqM5jkIEUbw_w

InStorage Real Estate Investment Trust, a Toronto-based trust that owns self-storage operations across Canada, widened its second-quarter net loss as the company faced higher interest costs and other expenses. Read the full story at: http://canadianpress.google.com/article/ALeqM5jsiR_zD6w8VQYWNtyyN5llHwpPHg

The Globe and Mail reported a 13 percent rise in funds from operations for Boardwalk Real Estate Investment Trust. The rise is reported to be due to revenue increases from rental properties in Western Canada. Read the article at the Globe and Mail by following the link below.

http://globeinvestor.com/servlet/story/RTGAM.2008

July 7, 2008

Leben REIT of Calgary agreed to sell eight of their nine properties to Toronto based Whiterock REIT for approximately $80 million. The portfolio is made up of properties in Calgary and Edmonton and totals about 341,000 square feet. These assets are currently 99% leased with an an average of 5.7 years remaining in the lease terms. These existing leases are, on average, 20% below market rates. The purchase price, excluding closing and transactions costs, represents a going-in cap rate of about 7.0 %.

This purchase, expected to close at the end of July, will result in about 1/3 of Whiterock’s portfolio represented in the Alberta and Saskatchewan markets. Leben will continue its relationship with Whiterock by facilitating deal flow for them, specifically in Alberta. The sale also allows Leben to rebuild its own portfolio, now in the public market.

Prestigious properties, such as condominium buildings, shopping malls, and office buildings, were previously inaccessible to most individual investors. Often though, investment in such properties can present a very attractive and lucrative opportunity. So how does a single investor with limited capital take advantage of such investments?

REITs facilitate the investment syndication process, creating a pool of funds. The sum of these individual contributions is what is used to purchase these prestigious properties, allowing the average investor to capitalize on previously elusive opportunities. Add to that the combination of steady income, long-term capitalization, and tax advantages and it’s no wonder investors are turning to REITs. The ability for the average investor to gain ownership in prestigious properties presents such a great opportunity. REITs break down the barriers and even the playing field for all investors.

Singapore conglomerate Fraser and Neave’s property unit has bought 17.7 percent of Allco Commercial REIT ALCR.SI and all of of the real estate investment trust’s manager for S$180 million ($132 million) with shares from all companies climbing on sale day.

Read more…

This Seattle Times article by Jon Talton explains Weyerhaeuser’s option to migrate its real estate division into a REIT and the benefits that would be applied to help Weyerhaeuser solve some of its financial worries. While not directly applicable to Canadian REIT investors, it adds some insight into the overall value of REITs.

Read more…

Signs point to continued strength in Canadian REITs as Whiterock buys Leben assets.

Read more at the Globe and Mail…

Great news for Canadian REIT investors was written up in a PriceWaterhouseCoopers report and reported in the Edmonton Journal.

The article summarizes the report and states that income trusts will still be a good option for individual investors as after-tax credits will be available.  This article also expresses the view that after the 2011 tax rules come into play most will remain as trusts.

Read more…

A Canacord analysis of Canadian Real Estate Investments states that they expect the Canadian commercial property REITS to “deliver healthy organic growth in the upcoming earnings season, with decent potential for positive upside surprises.”

Read more at the Financial Post…

Jason Chow at the Globe and Mail has written an article of the above title in the June 24 issue and encourages investing in REITs that have holdings in shopping centers as they have longer lease agreements and will not be affected by short term recession.

Great advice for Canadian REIT investors - unfortunately this article is not available online, so you’ll have to see if you can get a copy or read it at your local library

Riocan and Kimco have agreed to acquire a 10-property portfolio in Eastern Canada valued over $150 million. The acquisition will form the basis for a new joint venture called RioKim II…