1st Quarter 2018 Newsletter
Welcome to Centurion's first quarter newsletter for 2018. In this issue, Centurion President and CEO Greg Romundt talks about Centurion Apartment REIT's 2017 performance in detail and offers a behind- the-scenes look at Centurion Asset Management Inc.'s enhanced human resource and employee development programs. We also feature Greg Romundt's latest interviews with Wealth Professional and TheRealtyPaper.com.

We are also delighted to share a number of corporate updates including the launch of a dedicated number for investor services, bonus distributions for Centurion REOT and CFIT, the release of the 2017 Management's Discussion and Analysis for all three Trusts, and our recent visit to the Scott Mission. 

We are as equally excited to share that Greg Romundt is a finalist for CEO of the Year in the 2018 Wealth Professional Awards. He was also named a Director of the Private Capital Markets Association of Canada. 

Finally, Greg Romundt will be appearing at two upcoming industry events -- goREAL on May 10th and Aptcon 2018 on June 6th and 7th, where he is the Chairman. More details about these events are available below.

The first quarter of 2018 has been very busy and exciting for us. We look forward to a promising year ahead.
Dedicated Number for Investor Services
At Centurion, we constantly seek new ways to enhance our investor management services.

You can now reach our dedicated Investor Administration team by calling 1-833-733-5617 (toll-free) or 416-733-5617  for account inquiries including requests for statements, tax forms,  web access  inquiries, s ubscription documents, redemption forms, and a ccount updates such as address changes.

You can also reach our Investor Administration team via email at investoradmin@centurion.ca.
Centurion Apartment REIT - Moving the Needle on
Performance vs. Inflation and National Rents
By: Mr. Greg Romundt
Centurion Apartment REIT (the "REIT") has continued to significantly drive revenues, Net Operating Income (NOI), and margins across the portfolio. We have managed to outperform by a factor of 1.9 times vs. the average national rental growth rate over the last five years (4.77% revenue growth vs. 2.56% CMHC average rental growth) and 3.2 times vs. inflation of 1.51%. Same Store NOIs have increased at a spectacular 10.7% average annual rate, meaning that the REIT has grown this metric at 7.1 times the rate of inflation. This outperformance, when compounded over this five-year period, has allowed the REIT to grow its same store NOI by 50%,  Total Operating Revenues (TOR) by 20%, and market rents by 33%, compared to approximately 6% inflation and an 11% increase in observed CMHC rents over the same period. The graphs below illustrate how the REIT has outperformed in growing its total revenues, market rents, and NOI vs. national rents and inflation.
Centurion Apartment REIT Performance vs. Inflation and Market Rents
Total Operating Revenue Growth Rate
Same Store NOI Growth Rate
What Sets Centurion Asset Management
Apart from the Industry?
By: Mr. Greg Romundt
2017 was a year of extremely positive results, which we partially attribute to a complete revamp of the Human Resource and Employee Management functions at Centurion Asset Management Inc.
Often referred to as "The Year of HR", we focused on strengthening our corporate culture, boosting employee morale, reducing turnover, and increasing productivity through employee engagement and training. In the past twelve months, Centurion has implemented several programs that focus on improving communication and transparency, employee innovation, and employee development. We thought it was important to share some of the ways in which we separate ourselves and outshine other industry leaders.
Centurion introduced three web-based systems, BambooHR, TinyPulse, and Slack to enhance communication across the company and give the management team greater insight into employee performance and opinions. We implemented TinyPulse as an automated survey tool that allows employees to respond anonymously to a topic and/or share any suggestions or feedback, which we have used to make consistent improvements to our culture, work environment, and productivity. Slack, an internal communication software, was implemented as a platform that enables employees to send instant messages, share information, and provide timely updates to anyone in the company. Employees are also encouraged to join various channels and share relevant content amongst these groups to promote greater interaction and a better flow of information. BambooHR allowed us to move from written, annual top-down evaluations, which were not timely, to quarterly electronic 360-degree reviews (manager to direct reports, direct reports to their manager, and peer reviews). This gave us the ability to get quick insights, diagnose issues, and make fixes to improve employee performance, job satisfaction, and retention.
By using these tools and implementing changes, we were able to achieve rating scores above the 
overall and  industry benchmarks in every category:
These initiatives afforded us the ability to further streamline, which led to process improvement and gave  management  the ability to focus on core areas that positively affect our results, such as improving rental growth and employee performance and engagement. Ensuring that we have skilled employees in the right roles, with the tools they need to produce strong results, allowed us to achieve success in 2017 as we continue to look forward to even further success in 2018.
Bonus Distribution
Centurion Asset Management Inc. is pleased to announce that a Bonus Distribution was paid to unitholders of both Centurion Real Estate Opportunities Trust ("REOT") and Centurion Financial Trust ("CFIT"). This Bonus Distribution was paid in units to unitholders  as at December 31, 2017 on March 15, 2018.

A 2017 Bonus Distribution of $0.1427 was paid on March 15, 2018 (in units) to unitholders of record as at December 31, 2017.

A 2017 Bonus Distribution of $0.1085 was paid on March 15, 2018 (in units) to unitholders of record as at December 31, 2017.
  • The REIT NAV as at May 1, 2018 is $14.180, which represents a YTD unit price appreciation of 2.4%.
  • In addition, the current annualized yield for Class A Unit cash distributions is 5.78% and 6.56% for Class F cash distributions.
  • Portfolio property vacancy rates continue to remain at record lows at less than 1%.
  • The REIT is hopeful that it may have some opportunities for property acquisitions this year through the REOT financing pipeline.
  • The Trust paid a bonus distribution of $0.1427, paid in units on March 15, 2018 to unitholders as at December 31, 2017.  
  • The REOT NAV as at May 1, 2018 is $11.658, which represents a YTD unit price appreciation of 3.4%.
  • In addition, the current annualized yield for Class A Unit cash distributions is 6.00% and 6.86% for Class F cash distributions.
  • Quality lending opportunities in Canada remain extremely strong for the Trust as it approaches an AUM of over $450 million.    
  • In Q1 2018, the Trust completed its second transaction in the U.S. and is currently considering two more in the U.S., which may close in the next few months.
  • The Trust paid a bonus distribution of $ 0.1085, paid in units on March 15, 2018 to unitholders as at December 31, 2017.
  • The CFIT NAV as at May 1, 2018 is $10.527, which represents a YTD unit price appreciation of 2.4%.
  • In addition, the current annualized yield for Class A Unit cash distributions is 6.65% and 7.60% for Class F cash distributions.
  • The portfolio continues to maintain its roughly 50/50 split between its investment in REOT and investments into non-real estate corporate private debt.
  • Sectors represented on the corporate debt side include healthcare, consumer receivables, and alternative energy.
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2017 Management's Discussion and Analysis
The annual Management's Discussion and Analysis ("MD&A")  is one of Centurion's communication vehicles to investors and advisors that integrates material information about the company's performance. View the 2017 MD&A for  Centurion Apartment REIT, Centurion REOT, and CFIT below or visit our website's Investment Solutions section.
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The Difference Between REIT and Wrong --- An Interview with Centurion President and CEO Greg Romundt on Wealth Professional

In the Special Edition of Wealth Professional Magazine on Alternative Investments, Centurion President and CEO Greg Romundt shares the benefits of investing in Canadian REITs and in other alternative investments. He highlights how these investments bode well in terms of diversification and volatility.

Read Greg Romundt's full interview here.
Greg Romundt on TheRealtyPaper.com's Straight Talk

In his latest interview, Centurion President and CEO Greg Romundt speaks with Sparsh Sharma about Centurion, the REIT, and his vision of the company in three to five years.

Read the full interview here.
We are excited to share that Centurion President and CEO Greg Romundt was selected as a Finalist for CEO of the Year in the 4th annual Wealth Professional Awards, an independent awards program in the wealth management and financial advisory services industry in Canada.

The finalists in all 23 categories were selected after a rigorous nomination and selection process. The winners will be selected by a panel of industry experts and announced on May 31, 2018 during the awards ceremony at The Liberty Grand in Toronto. The annual gala is attended by over 600 of Canada's top financial advisors and wealth professionals.

Centurion Marketing Director Sarah Stewart commented, "Centurion is excited to have Greg Romundt as one of this year's finalists and we look forward to this exciting event. We join our industry colleagues in celebrating the achievements of all finalists who strengthen Canada's financial services sector."
Centurion President and CEO Greg Romundt was also named a Director of the Private Capital Markets Association of Canada (PCMA) in February 2018. PCMA and the National Exempt Market Association (NEMA) announced a merger, thereby strengthening the private capital and exempt markets industry, and making the new entity the largest private capital markets community in Canada.  Greg Romundt has been a Director of NEMA since 2014. 

Greg Romundt will also be a panelist on the topic "Investing in Multi-Family Assets" at goREAL 2018, which will be held on May 10 at the National Club. The goREAL platform is an annual gathering of innovative and influential real estate leaders and investor groups that offers a one-of-a-kind, intimate setting for industry stakeholders to discuss trends in North American private equity real estate.
Finally, the 2018 North American New Apartment Construction and Mixed-Use Symposium and Expo (Aptcon 2018) will be chaired by Centurion President and CEO Greg Romundt. Held on June 6 and 7, the 1.5-day event brings together North America's foremost experts in the multi-family residential, mixed-use, student, and senior housing sectors to address critical and timely issues that are driving change in the industry today.
Centurion Community Engagement
The Centurion team has been volunteering at the Scott Mission since 2015. On March 6, the team was back for another visit to serve hot lunch meals  and pack groceries for the food bank on Spadina Avenue in Toronto. 
The Scott Mission was founded in 1941 and is a non-denominational Christian organization responding to the needs of the poor, homeless, abandoned, and vulnerable of all ages. 
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