Skip to main content

Markets have tumbled and investor confidence is shaky, but that hasn't stopped Canadian real estate investment trusts from financing. And why should they stop? Investor demand for them is still incredibly high.

H&R REIT was the latest firm to tap the market. It's $150-million offering of stapled units flew out of the gates and the deal was ultimately upsized to $200-million. It's music to bankers' ears because they are trying to find alternatives that replace the commodity names that financed over the past 6 months.

H&R's deal comes on the heels of Killam Properties' $40-million bought deal and Pure Industrial REIT's $52-millin acquisition financing. And earlier in April Calloway REIT and Artis REIT financed almost $200-million combined.

Story continues below advertisement

It's quite clear now that retail investors are turning to yield stocks likes REITs because they are worried about the market's growth prospects.

Proceeds from H&R's deal will go toward new acquisitions. It might seem like there's practically nothing left to scoop up because all the REITS have been out buying, but the numbers prove otherwise. Dundee REIT, for instance, recently reported first-quarter results and the company bought $475-million worth of properties in the first quarter alone.

Report an error
About the Author
Reporter and Streetwise columnist

Tim Kiladze is a business reporter with The Globe and Mail. Before crossing over to journalism, he worked in equity capital markets at National Bank Financial and in fixed-income sales and trading at RBC Dominion Securities. Tim graduated from Columbia University's Graduate School of Journalism and also earned a Bachelor in Commerce in finance from McGill University. More

Comments are closed

We have closed comments on this story for legal reasons. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

Combined Shape Created with Sketch.

Combined Shape Created with Sketch.

Thank you!

You are now subscribed to the newsletter at

You can unsubscribe from this newsletter or Globe promotions at any time by clicking the link at the bottom of the newsletter, or by emailing us at