Equiton Apartment Fund Crosses the $1B AUM Mark After Recent Acquisition
BURLINGTON, ON, Aug. 22, 2024 /CNW/ - With a focus on rewarding investors and building communities that residents are proud to call home, Equiton's flagship real estate fund has exceeded $1 billion in assets under management (AUM).
Since launching in 2016, the Equiton Residential Income Fund Trust (Apartment Fund) sustained steady growth through several challenging economic periods facing the real estate industry, including the COVID-19 pandemic and the recent period of high inflation and interest rates. Founded on a vision of making Canadian real estate investing accessible, Equiton's agility and entrepreneurial spirit helped it grow from three employees to more than 200, with offices in Burlington and Toronto. Through it all, Equiton has helped 12,000-plus Apartment Fund investors from all walks of life grow their wealth.
The Fund's latest acquisition in Welland, Ontario, increases its AUM to $1.06 billion. Since its first purchase in Stratford, the Fund has expanded its portfolio to a total of 38 residential properties with 3,117 income-producing portfolio units across Canada. Offering a mix of reliable monthly cash flow and capital appreciation even in the toughest markets, the Fund's resiliency has positioned it well for continued growth as interest rates continue to fall.
"That we mark this milestone at a time of difficulty for some real estate firms is really no coincidence. We have grown the Apartment Fund rapidly over the years, but our progress has always been underpinned by a deep commitment to conservative management. This has enabled us to consistently reward investors and enhance resident satisfaction," says Jason Roque, CEO and founder of Equiton. "The Fund continues to be an active buyer and steward of rental properties and has seen a rapid inflow of new investors. We look forward to helping them meet their financial goals."
In-house property management arm, Equiton Living, plays a significant role in executing on the Fund's strategy, enabling it to take an efficient, hands-on approach to strengthening its property portfolio. Since inception, the Fund has spent close to $50 million on capital improvements such as in-suite renovations on turnover and energy-saving building upgrades.
The approach has proven successful at several Fund properties, including one in Mississauga. During in-depth due diligence when purchasing the property, the discovery of underutilized storage rooms that could be converted into rental units became one key factor in the Fund's decision to acquire the property. The nine new suites resulted in an almost immediate increase in the property's fair value and provided much-needed housing to the local market. This recent example highlights how the Fund seeks to unlock hidden value, serving as a testament to the promise behind the company's tagline, 'We see what others don't.'
"When you look at every building as an opportunity to make it better, the result is steady growth and happier residents," says Helen Hurlbut, President and Chief Financial Offer at Equiton, adding that resident satisfaction is a priority for Equiton. She notes that resident sentiment has steadily increased within the portfolio. In 2023, three buildings within the Apartment Fund were presented with the SatisFacts Resident Satisfaction Award.
"Our strategy is designed to be a win-win for all our stakeholders," continues Hurlbut. "We make real estate accessible to Canadian investors, helping them grow their wealth while enhancing the experience of our residents."
The Fund has delivered an annualized return of 11.0%* (Class F DRIP) since inception, in line with its targeted net return of 8% to 12%. In the same period, the Fund reported exclusively positive returns and no missed distributions. Its excellent track record of creating lasting value is supported by sustainable financial practices, a focus on transparency, and governance that prioritizes ethical decision-making and oversight.
"It has been rewarding to see how far the Fund has come and to watch our investors grow with us," says Roque. "I want to acknowledge that we wouldn't be here today without the hard work of our employees, including our on-site Resident Managers who show up every day for our residents and investors. I couldn't be prouder of what we've built together."
*Class F DRIP annualized returns and all data since inception as at June 30, 2024, unless otherwise indicated. Class F inception is March 2018. Fund inception is May 2016. |
ABOUT EQUITON
Proudly Canadian-owned and operated, Equiton is a leading private equity firm that delivers solid returns for investors. With products like the Apartment Fund, we believe in making private real estate investing accessible to all Canadians and providing easy access to all types of investment-grade real estate through our proven high-performing investment solutions. Supported by Equiton Living, its active property management arm, Equiton creates superior living experiences for residents while offering investors true diversification, full transparency, and all the benefits of real estate investing without the difficulties of financing, tenant management, building maintenance or project management.
SOURCE Equiton Inc.
MEDIA CONTACT: Kathy Gjamovska, VP, Marketing & Communications, [email protected], 289-208-0817
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