“Now is a great time to acquire properties for our portfolio,” Lang said. “Rates are still higher, but they’re coming down. There’s still an opportunity to purchase properties before rates drop further, which will drive up valuations within our portfolio. We’re active buyers in the market and just acquired a four-building portfolio in Toronto, Ontario. We hope to get a few more in the pipeline in the next month or so.”
This recent acquisition under the Equiton Residential Income Fund Trust (The Apartment Fund) includes four top-tier, stabilized buildings located in desirable communities. The Apartment Fund comprises of 41 properties with a total of 3,463 portfolio units as at September 30, 2024.
As more bidders enter the marketplace, property values are expected to increase, positioning Equiton for both near-term gains and long-term stability. This strategic activity highlights the company’s bullish stance on multifamily assets, particularly private Canadian apartments. “Multi-family is a great sub-sector within real estate backed by strong tailwinds such as population growth, demographic shifts and low housing supply, we believe it will continue to significantly benefit our Fund.” states Lang.
Earlier this year, Equiton’s flagship real estate fund exceeded $1 billion in assets under management (AUM) with a four-property acquisition in Welland, Ontario. With a strong mix of reliable monthly cash flow and capital appreciation, the Apartment Fund has demonstrated resilience, even during challenging market conditions.
Interest rate cuts: Boosts property values
“The recent rate cuts have been a long-awaited positive for the real estate sector,” Lang explained. While the timing of these cuts was slightly delayed, the overall impact remains highly beneficial. “We expected rate cuts to come sooner, but they’re here now, and we anticipate more before the end of the year. As cap rates contract, we’re expecting to see a significant appreciation in property values,” he said.
