Contents
Executive Summary 2
Summary of Key Macro Findings 6
Office – Objects in the Rear Are Further Than They Appear 6
Industrial – Shifting into Lower Gear 6
Retail – “Green Shoots” Providing Encouraging Signs 6
Making the Case for Diversification 6
Investment Market Conditions – Risks to Cap Rate Expansion Remain 6
Company Summaries 7
1-Sector Outperform Rated Companies 7
2-Sector Perform Rated Companies 7
Diversified REITs – Side-by-Side Comparison 9
Canadian Office Fundamentals: Objects in the Rear Are Further Than They Appear 10
Composition of Canada’s Office Market 15
Canadian Industrial Fundamentals: Shifting into Lower Gear 17
Composition of Canada’s Industrial Market 20
Retail – “Green Shoots” Providing Encouraging Signs 22
Making the Case for Diversification 24
Diversified Property Portfolios Can Reduce Risk and Enhance Overall Returns 24
Diversified REITs Offer Efficient Means to REIT Investment Diversification 25
Investment Market Conditions 27
Appendix 1 – Office Market Summary by CMA 29
Appendix 2 – Industrial Market Summary by CMA 33
Cominar REIT – Lost in Translation 37
Canadian REIT – The CREIT Supremacy 61
Morguard REIT – Float Like a Butterfly, Sting Like a Bee? 87