Before we end another great year, here are some exciting updates on the past three months.
In this issue, we are thrilled to share
two of Mr. Greg Romundt's recent interviews with RENX and Wealth Professional Canada about Centurion's latest acquisitions and his views on the current trends in real estate. We also
welcome two new independent trustees for Centurion REOT, as well as a new Vice President for Institutional Sales. Finally, we share our lineup of new and pending acquisitions and
the latest updates about Centurion's three funds.
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Centurion follows ‘opportunity’, buying 6 W. Canada apartments
Centurion President and CEO Greg Romundt speaks with RENX about the company's recent acquisitions in Western Canada. Read the full interview
here
.
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Keep an eye out for Greg's 2019 Annual Commentary
in the next issue of The Centurion
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"Nothing boring about the suburbs"
: An Exclusive Year-End Interview with Centurion Founder
Greg Romundt on Wealth Professional Canada
Centurion president and CEO Greg Romundt speaks with Wealth Professional Canada about the growing opportunities in the suburbs and exurban areas thanks to the shortage of affordable rental housing in major urban centres such as Toronto and Vancouver.
Click
here
for the full interview.
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Enhancing the Boards of
Centurion Apartment REIT and Centurion REOT
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In the last issue, we introduced four new Centurion Apartment REIT Trustee members – Mr. Andrew Jones, Ms. Laetitia Pacaud, Ms. Paula Gasparro, and Mr. Stephen Sender, being the crossover board member for Centurion Apartment REIT and Centurion REOT.
On November 21st, we announced the appointment of two new independent trustees for Centurion REOT – Mr. Christopher Humeniuk, who was appointed on October 11, and Mr. Michael Lovett, who was appointed on November 6.
Mr. Charles Dillingham, who served on the board since Centurion REOT was founded in 2014, has stepped down. Additionally, Mr. Robert Orr, Centurion Chief Financial Officer (CFO) and Chief Compliance Officer (CCO), who sat as one of the internal trustees for several years, has stepped down as a trustee, but remains in his operating roles to make room for the new trustees. Mr. Orr will, in his roles as CFO and CCO, continue to attend meetings and report to the board as before.
Subsequent to these changes, Centurion now has 13 independent trustees and three management trustees across all the three boards, that is from nine independent trustees and four management trustees in 2018. See link below for biographies of the Trustees.
“We are delighted to welcome Chris
Humeniuk
and Michael
Lovett
on the Centurion REOT Board,”
says Greg Romundt, Centurion President and CEO.
“We are confident they will provide valuable perspectives as we continue to execute our strategies and enhance value for all unitholders. These changes will significantly strengthen the board, not only in terms of independence, but also in the range of skills at the table.”
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Another Outstanding Quarter for Centurion
2019 has truly been an exciting year for Centurion. The last three months had been a benchmark quarter for Centurion Apartment REIT with two completed acquisitions, six pending acquisitions, and several more in the pipeline for 2020. As at November 30, 2019, Centurion's multi-family apartment portfolio comprises 68 properties with 8,436 rental units in 24 cities across Canada and the United States.
Additonally, on November 12, Centurion REOT completed the purchase of a 75% interest in a medical office building in Toronto, Ontario. This transaction is Centurion’s first medical office acquisition.
Here's a combined summary of completed and pending acquisitions that Centurion has announced so far.
- Two newly constructed properties in Langford and Surrey, British Columbia. Fusion in Surrey is a beautiful property with state-of-the-art amenities and shared spaces that are designed for urban lifestyle. It is conveniently located in Surrey’s emerging City Centre with direct access to downtown Vancouver. Centurion has acquired a 100% interest in Fusion. Across the Strait of Georgia, Southwest of Vancouver, lies Hockley Corners in Langford. The 63-unit property will be a nice addition to Hockley Apartments when it closes on December 9. Once completed, this acquisition will bring Centurion's portfolio to 10 properties with 664 rental units in British Columbia.
- A new luxury apartment complex in southwest Winnipeg. Situated adjacent to a previous acquisition (Pinnacle at Bridgwater I), Pinnacle at Bridgwater II is a brand-new development offering 208 suites with a 3,200-square-foot Resident Clubhouse with fitness facilities and tenant lounge, as well as an outdoor pool, which it shares with Bridgwater I. This new acquisition brings Centurion's portfolio to three properties with 800 rental units in Winnipeg. Centurion has acquired a 45% interest in Pinnacle at Bridgwater II.
- An apartment portfolio in Edmonton, Alberta. Mayfair on Jasper, Oliver Place, Grand Central Manor, and Riverside Towers are high-rise properties located in Central Edmonton. All properties, with the exception of Grand Central Manor, has over 63,000 square feet of commercial space combined. These new acquisitions will bring Centurion's portfolio to six properties with 1,278 rental units in Edmonton. Centurion will acquire a 100% interest in these properties.
- A newly constructed multi-residential property in Regina, Saskatchewan. Completed in May 2019, Apex at Acre 21 is a brand-new development comprising three buildings with a total of 176 suites. The community offers a mix of one and two-bedroom suites with dens and features a 2,400-square-foot Resident Clubhouse with fitness centre, games room, and social lounge. This acquisition will bring Centurion's portfolio to five properties with 571 rental units in Regina. Centurion will acquire a 50% interest in this property.
- First medical office building in Toronto, Ontario. Located at 520-524 Ellesmere Road in Toronto, the six-storey building is within a short distance from the Don Valley Parkway and Highway 401. It is within a 10-minute drive to four major hospitals – North York General Hospital, Scarborough Healthcare Birchmount, Centenary Hospital, and Scarborough General Hospital, making it attractive to healthcare professionals seeking office space. (map) Centurion has acquired a 75% interest in this property.
See below for property maps or click the photos to
view the announcements.
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CENTURION APARTMENT REIT AND CFIT – OPEN FOR INVESTMENT
Centurion Apartment Real Estate Investment Trust ("REIT") and Centurion Financial Trust ("CFIT") are open for investments.
Centurion Real Estate Opportunities Trust ("REOT") is temporarily capped for new subscriptions.
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FUND OVERVIEW
Centurion Apartment Real Estate Investment Trust ("REIT")
- The REIT NAV as at December 3, 2019, is $17.89, which represents a unit price appreciation of 10.78% since the start of 2019.
- The REIT's year-to-date return for 2019 was 15.95% on its Class A Units and 16.66% on its Class F Units.
- The REIT's trailing 12-month return for 2019 was 18.79% on its Class A Units and 19.58% on its Class F Units.
- The current annualized distribution yield for reinvested Class A Units is 4.78% and 5.44% for Class F Units.
- The REIT has acquired 13 multi-residential properties in British Columbia, Alberta, Manitoba, and Georgia; and has eight (8) multi-residential properties under contract in British Columbia, Alberta, Saskatchewan, and Manitoba.
- Rent-to-market-rent gap is 13.5% as at September 30, 2019, compared to 13.7% as at December 31, 2018.
Centurion Real Estate Opportunities Trust ("REOT")
- The REOT NAV as at December 3, 2019, is $11.75, which represents a unit price appreciation of 1.48% since the start of 2019.
- The REOT's year-to-date return for 2019 is 7.32% on its Class A Units and 8.18% on its Class F Units.
- The REOT's trailing 12-month return for 2019 was 7.87% on its Class A Units and 8.81% on its Class F Units.
- The current annualized distribution yield for reinvested Class A Units is 6.25% and 7.17% for Class F Units.
- REOT is enjoying exceptional deal flow and has several hundred million in loan term sheets out for consideration.
Centurion Financial Trust ("CFIT")
- The CFIT NAV as at December 3, 2019, is $10.272, which represents a unit price depreciation of 0.82% since the start of 2019.
- CFIT's year-to-date return for 2019 is 5.66% on its Class A Units and 6.61% on its Class F Units.
- CFIT's trailing 12-month return for 2019 was 6.25% on its Class A Units and 7.30% on its Class F Units.
- The current annualized distribution yield for reinvested Class A Units is 7.18% and 8.24% for Class F Units.
- The portfolio is split as at September 30, 2019, between its investment in real estate debt or mortgages (61%) and investments in non-real estate, corporate private debt (39%).
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Vali Lazarescu
Vice President, Institutional Sales
Mr. Vali Lazarescu
served as Vice President of Institutional Sales at Ninepoint Partners/Sprott Asset Management in Toronto covering Canadian, U.S., and offshore investors from 2015 to 2019
. Previously, he was a Business Development Manager at Sun Life Global Investments where he helped grow the Montréal and
Québec mutual fund businesses. Prior to that, he was an Analyst and Associate at BNP Paribas in New York and Montréal, where he worked on the fixed income and structured products desks and distributed over U.S. $150 billion in deal flow across several alternative fixed income credit strategies.
Mr. Lazarescu earned his post graduate degree in Management-Finance at Harvard University with Summa Cum Laude and Dean’s list honors. He earned his B.COMM degree in Finance and Economics from the John Molson School of Business. He also obtained an NCAA Division 1 Basketball scholarship while competing at The College of William and Mary in Virginia.
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For investor management inquiries, please contact or Investor Administration team:
Toll-Free: 1-833-733-5617
Tel: 416-733-5617
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**Our office will be closed from Wednesday, December 25, 2019 until Wednesday, January 1, 2020.
All inquiries will be attended to promptly upon our return on Thursday, January 2, 2020
during regular business hours. We look forward to assisting you in the new year.**
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